Johnson Controls International PLC (JCI)
Debt-to-equity ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $16,545,000K
= 0.00
The debt-to-equity ratio measures the extent to which a company is using debt to finance its operations compared to its equity. A higher ratio indicates that the company is primarily financed by debt, while a lower ratio suggests a larger proportion of equity financing.
Based on the data provided, Johnson Controls International plc's debt-to-equity ratio has been relatively stable over the past five years, standing at 0.53 as of September 30, 2023. This indicates that the company has a moderate level of debt compared to equity in its capital structure.
The trend over the years shows a slight increase from 0.37 in 2019 to 0.53 in 2023, with some fluctuations in between. This upward trend suggests that the company may have been taking on more debt relative to equity over time.
It's important to note that while a higher debt-to-equity ratio can increase financial leverage and potentially magnify returns on equity for shareholders, it also poses greater risk and financial vulnerability, especially in times of economic downturns or rising interest rates. On the other hand, a lower ratio may indicate financial stability and a conservative financing strategy.
In summary, Johnson Controls International plc's debt-to-equity ratio indicates a moderate reliance on debt financing. Investors and analysts should closely monitor changes in this ratio to assess the company's financial risk and capital structure decisions.
Peer comparison
Sep 30, 2023