Johnson Controls International PLC (JCI)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 35.20% | 29.23% | 33.09% | 33.74% | 33.20% |
| Operating profit margin | 2.40% | 3.12% | 1.81% | 7.65% | -0.95% |
| Pretax margin | 7.91% | 5.71% | 6.02% | 10.49% | 3.31% |
| Net profit margin | 7.43% | 6.92% | 6.08% | 6.85% | 2.83% |
Johnson Controls International PLC's gross profit margin has shown improvement over the past five years, increasing from 29.23% in 2023 to 35.20% in 2024. This indicates the company's ability to control production costs and generate revenue.
However, the operating profit margin has fluctuated significantly, with a decrease from 3.12% in 2023 to 2.40% in 2024. This suggests that the company's operating expenses might be impacting its profitability efficiency.
The pretax margin has also varied, but it has generally shown an increasing trend, reaching 7.91% in 2024. This indicates that Johnson Controls International PLC is managing its pre-tax income well relative to its revenue.
In terms of net profit margin, the company has shown consistent improvement, with a notable increase from 2.83% in 2020 to 7.43% in 2024. This indicates that Johnson Controls International PLC is effectively managing its overall expenses and generating higher profits relative to its revenue.
Overall, Johnson Controls International PLC's profitability ratios indicate mixed performance, with improvement in net profit margin but some volatility in operating profit margin. Continued attention to cost management and operational efficiency may help the company enhance its profitability in the future.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.29% | 1.97% | 1.08% | 4.36% | -0.52% |
| Return on assets (ROA) | 3.99% | 4.38% | 3.63% | 3.91% | 1.55% |
| Return on total capital | 3.42% | 5.03% | 10.72% | 15.51% | 5.61% |
| Return on equity (ROE) | 10.59% | 11.18% | 9.42% | 9.32% | 3.62% |
Based on the provided data, a comprehensive analysis of Johnson Controls International PLC's profitability ratios reveals the following trends:
1. Operating Return on Assets (Operating ROA): The operating ROA has shown some volatility over the past five years, ranging from a negative figure in 2020 to a high of 4.36% in 2021. It decreased to 1.29% in 2024, indicating that the company's operating profits generated by its assets have declined in the most recent year.
2. Return on Assets (ROA): The ROA has generally been fluctuating within a narrower range compared to the operating ROA. In 2024, the ROA stood at 3.99%, indicating that the company generated a profit of approximately 3.99% for every dollar of assets it owns.
3. Return on Total Capital: The return on total capital has shown a decreasing trend over the past five years, dropping from 15.51% in 2021 to 3.42% in 2024. This suggests that the company's ability to generate profits from the total capital invested has declined significantly in recent years.
4. Return on Equity (ROE): The ROE has also experienced fluctuations, with the highest figure recorded in 2020 at 3.62%. In 2024, the ROE stood at 10.59%, indicating that the company generated a profit of approximately 10.59% for every dollar of shareholders' equity.
Overall, Johnson Controls International PLC's profitability ratios demonstrate some inconsistencies and fluctuations over the past five years. The declining trends in the return on total capital and the operating ROA raise concerns about the company's efficiency in generating profits from its assets and total capital. Further analysis of the company's financial performance and strategic decisions may be needed to understand the underlying factors contributing to these trends.