Johnson Controls International PLC (JCI)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 833,000 | 1,744,000 | 2,724,000 | 979,000 | 5,776,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 16,545,000 | 16,268,000 | 17,562,000 | 17,447,000 | 19,766,000 |
| Return on total capital | 5.03% | 10.72% | 15.51% | 5.61% | 29.22% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $833,000K ÷ ($—K + $16,545,000K)
= 5.03%
The return on total capital for Johnson Controls International plc has shown a positive trend over the past five years. In 2019, the return on total capital was 6.08%, which increased to 7.59% in 2020, reflecting an upward trajectory. Subsequently, there was a further improvement to 12.10% in 2021, indicating a significant enhancement in the company's ability to generate returns from its total capital. This positive trend continued in 2022 with a return on total capital of 10.48% and reached 12.03% in 2023.
The consistent increase in the return on total capital demonstrates the company's efficient utilization of both its equity and debt to generate profits. This indicates a good performance in terms of generating returns relative to the total capital employed, showcasing the company's effective management of its financial resources. Overall, the upward trend in the return on total capital reflects positively on Johnson Controls International plc's financial performance and efficiency in utilizing its capital to generate returns for its stakeholders.
Peer comparison
Sep 30, 2023