Johnson Controls International PLC (JCI)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 606,000 | 828,000 | 2,031,000 | 1,336,000 | 1,951,000 |
| Short-term investments | US$ in thousands | — | 7,000 | — | 1,066,000 | — |
| Receivables | US$ in thousands | 6,156,000 | 6,077,000 | 5,791,000 | 5,811,000 | 5,599,000 |
| Total current liabilities | US$ in thousands | 11,955,000 | 11,084,000 | 11,239,000 | 9,098,000 | 8,248,000 |
| Quick ratio | 0.57 | 0.62 | 0.70 | 0.90 | 0.92 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($606,000K
+ $—K
+ $6,156,000K)
÷ $11,955,000K
= 0.57
The quick ratio of Johnson Controls International PLC has shown a declining trend over the past five years, decreasing from 0.92 in 2020 to 0.57 in 2024. This indicates a weakening ability of the company to meet its short-term obligations using its most liquid assets. A quick ratio below 1 suggests that the company may have difficulties in covering its current liabilities with its highly liquid assets.
A quick ratio of 0.57 in 2024 implies that for every dollar of current liabilities, the company only has $0.57 of quick assets readily available to cover these obligations. While a quick ratio of 0.57 is below the desired benchmark of 1 or higher, it is important to note that the interpretation of the quick ratio may vary based on the industry in which the company operates and its specific business model.
Further analysis and consideration of other financial metrics are recommended to gain a more comprehensive understanding of Johnson Controls International PLC's liquidity position and financial health.
Peer comparison
Sep 30, 2024