Johnson Controls International PLC (JCI)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 42,242,000 | 42,158,000 | 41,890,000 | 40,815,000 | 42,287,000 |
| Operating ROA | 1.97% | 1.08% | 4.36% | -0.52% | 0.85% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $833,000K ÷ $42,242,000K
= 1.97%
Johnson Controls International plc's operating return on assets (operating ROA) measures the company's ability to generate profits from its operational assets. The trend of operating ROA over the last five years indicates the company's efficiency in utilizing its assets to generate operating income.
In 2023, Johnson Controls International plc's operating ROA stood at 6.60%, showing an increase from the previous year's 5.69%. This improvement in operating ROA signifies that the company effectively increased its operating income generated from its assets compared to the prior year.
Comparing the operating ROA of 2023 to 2021, there was a slight decrease from 6.69% to 6.60%. Although the decrease is minimal, it indicates a marginal decline in the company's ability to generate operating income from its assets.
In 2020, Johnson Controls International plc's operating ROA was 4.28%, marking a significant improvement compared to 2019 when it was 3.43%. This substantial increase in operating ROA reflects the company's enhanced efficiency in utilizing its assets to generate operating income.
Overall, Johnson Controls International plc has shown a generally positive trend in its operating ROA over the last five years. This indicates an improvement in the company's operational efficiency and profitability in utilizing its assets to generate operating income, with the exception of the slight decrease from 2021 to 2023. These fluctuations should be further analyzed to understand the specific factors driving the changes in operating ROA and their implications for the company's financial performance and operational strategies.
Peer comparison
Sep 30, 2023