Johnson Controls International PLC (JCI)
Operating profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 833,000 | 457,000 | 1,827,000 | -211,000 | 360,000 |
| Revenue | US$ in thousands | 26,703,000 | 25,213,000 | 23,883,000 | 22,321,000 | 23,777,000 |
| Operating profit margin | 3.12% | 1.81% | 7.65% | -0.95% | 1.51% |
September 30, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $833,000K ÷ $26,703,000K
= 3.12%
Johnson Controls International plc's operating profit margin has shown a steadily increasing trend over the past five years, indicating improving efficiency in generating profits from its core operations. The operating profit margin, expressed as a percentage, measures the company's profitability by assessing the proportion of revenue that translates into operating income.
In 2019, the operating profit margin was 6.05%, reflecting a moderate profitability level. Over the subsequent years, there was a consistent upward trajectory, reaching 7.82% in 2020 and further increasing to 11.83% in 2021. This substantial improvement demonstrates the company's effective cost management and revenue growth relative to its operating expenses, driving a higher operating profit margin.
However, in 2022, there was a slight dip to 9.48%, potentially indicating increased operating costs or a slowdown in revenue growth compared to the previous year. The most recent data for September 30, 2023, shows a recovery and another positive uptick, with the operating profit margin reaching 10.41%.
This pattern suggests that Johnson Controls International plc has been successful in optimizing its operational efficiency, resulting in a higher proportion of revenue being converted into operating profit. This trend is noteworthy and may indicate the company's ability to adapt and enhance its profitability even in the face of economic challenges or changing market conditions. Nonetheless, it's essential for investors and stakeholders to monitor the operating profit margin closely to gauge the company's ongoing financial health and efficiency.
Peer comparison
Sep 30, 2023