Johnson Controls International PLC (JCI)
Pretax margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,767,000 | 1,526,000 | 1,592,000 | 1,312,000 | 1,199,000 | 1,519,000 | 1,720,000 | 1,962,000 | 2,445,000 | 2,505,000 | 2,218,000 | 1,353,000 | 1,027,000 | 739,000 | 252,000 | 4,866,000 | 5,202,000 | 5,441,000 | 6,110,000 | 2,463,000 |
| Revenue (ttm) | US$ in thousands | 26,831,000 | 26,865,000 | 26,291,000 | 25,891,000 | 25,349,000 | 25,213,000 | 25,100,000 | 24,823,000 | 24,458,000 | 23,809,000 | 23,275,000 | 22,325,000 | 22,002,000 | 22,321,000 | 22,611,000 | 23,606,000 | 23,983,000 | 29,198,000 | 31,282,000 | 32,899,000 |
| Pretax margin | 6.59% | 5.68% | 6.06% | 5.07% | 4.73% | 6.02% | 6.85% | 7.90% | 10.00% | 10.52% | 9.53% | 6.06% | 4.67% | 3.31% | 1.11% | 20.61% | 21.69% | 18.63% | 19.53% | 7.49% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,767,000K ÷ $26,831,000K
= 6.59%
To analyze the pretax margin of Johnson Controls International plc, we will examine the trend and fluctuations in the pretax margin over the last eight quarters. The pretax margin indicates the company's efficiency in generating profits before accounting for taxes relative to its total revenue.
Looking at the data, we observe a fluctuating trend in the pretax margin. In the initial quarters of 2022, the pretax margin was comparably higher, with a margin of 8.81% in March 2022, followed by 7.65% in June 2022. However, the margin started to decline in the latter half of 2022 and continued to decrease into 2023. The pretax margin reached its lowest point of 5.45% in December 2022.
Subsequently, there was a marginal improvement in the pretax margin in the first quarter of 2023, followed by a more substantial increase in the second quarter. However, the margin dipped once again in the third quarter of 2023, before showing a slight improvement in the most recent quarter, reaching 7.24%.
The fluctuating pretax margin may indicate varying levels of cost efficiency and profitability within the company. The declining trend from 2022 to 2023 suggests potential challenges in managing costs and optimizing profit generation. However, the recent uptick in the pretax margin may signify efforts to address these challenges and improve overall profitability.
Further analysis of the company's cost structure, revenue drivers, and operational efficiencies would provide valuable insights into the factors influencing the pretax margin and how the company is positioned for future performance.
Peer comparison
Dec 31, 2023