Johnson Controls International PLC (JCI)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 43,981,000 | 42,242,000 | 42,780,000 | 43,420,000 | 42,797,000 | 42,158,000 | 42,324,000 | 42,991,000 | 42,222,000 | 41,890,000 | 42,135,000 | 41,180,000 | 41,424,000 | 40,815,000 | 41,278,000 | 40,402,000 | 42,513,000 | 42,287,000 | 43,069,000 | 48,489,000 |
| Total stockholders’ equity | US$ in thousands | 16,698,000 | 16,545,000 | 16,324,000 | 15,890,000 | 16,046,000 | 16,268,000 | 15,988,000 | 16,536,000 | 17,249,000 | 17,562,000 | 17,840,000 | 17,698,000 | 17,656,000 | 17,447,000 | 17,805,000 | 18,084,000 | 19,329,000 | 19,766,000 | 20,363,000 | 20,036,000 |
| Financial leverage ratio | 2.63 | 2.55 | 2.62 | 2.73 | 2.67 | 2.59 | 2.65 | 2.60 | 2.45 | 2.39 | 2.36 | 2.33 | 2.35 | 2.34 | 2.32 | 2.23 | 2.20 | 2.14 | 2.12 | 2.42 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $43,981,000K ÷ $16,698,000K
= 2.63
The financial leverage ratio of Johnson Controls International plc has fluctuated over the past eight quarters. The ratio measures the extent to which the company relies on debt to finance its assets. A higher financial leverage ratio indicates higher financial risk and a greater reliance on borrowing.
Over the observed period, the financial leverage ratio ranged from 2.55 to 2.73, with an average of 2.63. This suggests that, on average, the company has been using approximately $2.63 of debt for every $1 of equity to finance its assets.
The fluctuation in the ratio indicates changes in the company's capital structure and its ability to manage debt. It is essential to consider the trend of this ratio over time in relation to the company's overall financial health and industry benchmarks to assess the effectiveness of its capital structure management.
Peer comparison
Dec 31, 2023
See also:
Johnson Controls International PLC Financial Leverage (Quarterly Data)