Johnson Controls International PLC (JCI)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 42,242,000 | 42,158,000 | 41,890,000 | 40,815,000 | 42,287,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $42,242,000K
= 0.00
The debt-to-assets ratio is a key financial metric used to assess a company's leverage and financial risk. It helps in understanding the extent to which a company's assets are financed by debt. Let's analyze the debt-to-assets ratio of Johnson Controls International plc over the past five years.
The debt-to-assets ratio for Johnson Controls International plc has remained relatively stable, with values of 0.21 for both 2023 and 2022. This indicates that approximately 21% of the company's total assets are financed by debt. The consistency of this ratio suggests that the company has maintained a prudent balance between debt and assets over the past two years.
Looking back further, the ratio was 0.18 in 2021, 0.19 in 2020, and 0.17 in 2019. This shows a gradual increase in the leverage of the company from 2019 to 2021, followed by a slight decrease in 2022 and 2023. The increase in the ratio from 2019 to 2021 suggests that the company may have taken on more debt to finance its assets during that period.
Overall, Johnson Controls International plc's debt-to-assets ratio indicates a moderate level of leverage and financial risk. It is important to consider other factors such as industry benchmarks, interest coverage ratios, and the company's overall financial health to gain a comprehensive understanding of their leverage position.
Peer comparison
Sep 30, 2023