Johnson Controls International PLC (JCI)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.65 | 2.55 | 2.59 | 2.39 | 2.34 |
Johnson Controls International PLC has consistently maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 over the last five years, indicating that the company has not relied heavily on debt to finance its operations or growth.
However, the financial leverage ratio has shown some fluctuation over the same period, ranging from a low of 2.34 in 2020 to a high of 2.65 in 2024. This ratio measures the company's total assets relative to its equity, indicating the level of financial risk taken on by the firm. The increasing trend in the financial leverage ratio suggests that Johnson Controls International PLC has been using more debt to finance its operations and investments compared to its equity over the years.
Overall, while the debt-related ratios show a conservative approach to debt management, the increasing financial leverage ratio indicates a growing reliance on debt to support the company's financial structure. Investors and stakeholders should monitor this trend to assess the potential impact on the company's solvency and financial health.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.44 | 2.96 | 7.75 | 12.44 | 4.08 |
Johnson Controls International PLC's interest coverage ratio has fluctuated over the past five years, ranging from a low of 1.44 in 2024 to a high of 12.44 in 2021.
A lower interest coverage ratio indicates that the company may have difficulty meeting its interest obligations with its earnings. The ratio of 1.44 in 2024 suggests that the company's operating income covers its interest expenses just over one and a half times, which could be a cause for concern regarding the company's ability to service its debt.
On the other hand, a higher interest coverage ratio is generally seen as more favorable, as it indicates that the company is more capable of meeting its interest payments with its operating income. The peak ratio of 12.44 in 2021 reflects a strong ability to cover interest expenses, demonstrating financial stability and a lower risk of default.
Overall, Johnson Controls International PLC's interest coverage ratio has shown variability over the years, suggesting fluctuations in the company's ability to handle its interest obligations. Investors and analysts may want to further investigate the underlying reasons for these fluctuations to assess the company's financial health and risk profile.