Johnson Controls International PLC (JCI)
Net profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,849,000 | 1,532,000 | 1,637,000 | 631,000 | 5,674,000 |
| Revenue | US$ in thousands | 26,703,000 | 25,213,000 | 23,883,000 | 22,321,000 | 23,777,000 |
| Net profit margin | 6.92% | 6.08% | 6.85% | 2.83% | 23.86% |
September 30, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $1,849,000K ÷ $26,703,000K
= 6.92%
The net profit margin is a key financial ratio that indicates the percentage of each dollar of revenue that translates into net income. It is calculated by dividing the net income by the total revenue and is a measure of the company's overall profitability.
Looking at the net profit margin for Johnson Controls International plc over the past five years, we can observe some fluctuations. In 2019, the net profit margin was significantly higher at 23.67%, indicating that a substantial portion of the company's revenue translated into net income. However, in 2020, the net profit margin decreased to 2.83%, reflecting a drastic decline in profitability, possibly due to extraordinary expenses or lower revenue relative to costs and expenses.
In 2021, the net profit margin recovered to 6.92%, indicating an improvement in profitability compared to the previous year. This improvement continued into 2022 with a net profit margin of 6.06%, suggesting that the company's cost management and revenue generation may have improved.
Examining the most recent data for 2023, the net profit margin further increased to 6.90%, continuing the positive trend from the previous years. This indicates that Johnson Controls International plc has been effectively managing its costs and expenses relative to its revenue, resulting in an enhanced bottom-line profitability.
In conclusion, while there have been fluctuations in the net profit margin over the past five years, the recent upward trend suggests that the company has been successful in improving its overall profitability, which is a positive indicator for investors and stakeholders. However, continuous monitoring of the net profit margin is essential to assess the company's ability to sustain and further improve its profitability in the future.
Peer comparison
Sep 30, 2023