Johnson Controls International PLC (JCI)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 550,000 | 833,000 | 457,000 | 1,827,000 | -211,000 |
| Total assets | US$ in thousands | 42,695,000 | 42,242,000 | 42,158,000 | 41,890,000 | 40,815,000 |
| Operating ROA | 1.29% | 1.97% | 1.08% | 4.36% | -0.52% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $550,000K ÷ $42,695,000K
= 1.29%
Operating return on assets (ROA) is a key financial metric that indicates how effectively a company is generating profit from its assets. Johnson Controls International PLC's operating ROA has fluctuated over the past five years, as evidenced by the figures ranging from -0.52% in 2020 to 4.36% in 2021.
The trend shows that in 2020, the company was not effectively utilizing its assets to generate operating profit, as indicated by the negative operating ROA. However, the company made significant improvements in the following year, achieving a much higher operating ROA of 4.36% in 2021. This suggests that in 2021, Johnson Controls was able to efficiently generate operating income relative to its asset base.
In subsequent years, there was a slight decline in operating ROA to 1.08% in 2022, followed by a substantial increase to 1.97% in 2023. The most recent data for September 30, 2024, shows a further decrease to 1.29% in operating ROA.
Overall, Johnson Controls International PLC's operating ROA has shown variability over the years, with fluctuations potentially influenced by factors such as asset utilization efficiency, profitability, and overall operational performance. Investors and stakeholders should closely monitor this metric to assess the company's ability to generate profits from its assets and evaluate its operational efficiency.
Peer comparison
Sep 30, 2024