Johnson Controls International PLC (JCI)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 550,000 | 833,000 | 1,744,000 | 2,724,000 | 979,000 |
| Interest expense | US$ in thousands | 381,000 | 281,000 | 225,000 | 219,000 | 240,000 |
| Interest coverage | 1.44 | 2.96 | 7.75 | 12.44 | 4.08 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $550,000K ÷ $381,000K
= 1.44
The interest coverage ratio of Johnson Controls International PLC has fluctuated over the past five years, showing a declining trend. The ratio decreased from 12.44 in 2021 to 1.44 in 2024, indicating that the company's ability to cover its interest expenses with operating income has weakened significantly during this period. This downward trend may raise concerns about the company's ability to meet its interest obligations in the future, as lower interest coverage ratios suggest a higher risk of default on debt payments. It is important for stakeholders to monitor this trend closely and assess the company's financial health and debt management strategies to ensure sustainability in the long term.
Peer comparison
Sep 30, 2024