Johnson Controls International PLC (JCI)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,294,000 | 1,097,000 | 1,871,000 | 1,566,000 | 1,438,000 | 1,744,000 | 1,937,000 | 2,180,000 | 2,660,000 | 2,724,000 | 2,443,000 | 1,581,000 | 1,264,000 | 979,000 | 500,000 | 5,137,000 | 5,508,000 | 5,776,000 | 6,481,000 | 2,859,000 |
| Interest expense (ttm) | US$ in thousands | 304,000 | 282,000 | 279,000 | 254,000 | 239,000 | 225,000 | 217,000 | 218,000 | 215,000 | 219,000 | 225,000 | 228,000 | 237,000 | 240,000 | 248,000 | 271,000 | 306,000 | 335,000 | 371,000 | 396,000 |
| Interest coverage | 4.26 | 3.89 | 6.71 | 6.17 | 6.02 | 7.75 | 8.93 | 10.00 | 12.37 | 12.44 | 10.86 | 6.93 | 5.33 | 4.08 | 2.02 | 18.96 | 18.00 | 17.24 | 17.47 | 7.22 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,294,000K ÷ $304,000K
= 4.26
The interest coverage ratio of Johnson Controls International plc has shown a consistent downward trend over the last eight quarters, indicating a potential decrease in the company's ability to cover its interest expenses from its operating income. The ratio, which stood at 14.17 in March 2022, steadily declined to 9.72 by December 2023. This suggests that the company's ability to meet its interest obligations from its earnings has weakened over time. It is essential for stakeholders to monitor this trend closely and assess the company's ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023
See also:
Johnson Controls International PLC Interest Coverage (Quarterly Data)