Johnson Controls International PLC (JCI)
Interest coverage
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 694,000 | 697,000 | -134,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 381,000 | 359,000 | 333,000 | 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 |
| Interest coverage | 1.82 | 1.94 | -0.40 | 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 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $694,000K ÷ $381,000K
= 1.82
The interest coverage ratio for Johnson Controls International PLC has shown fluctuations over the past few years. The trend indicates that the company's ability to cover interest expenses with operating income has been somewhat volatile.
In the most recent period, as of September 30, 2024, the interest coverage ratio was 1.82, which indicates that the company generated 1.82 times the operating income needed to cover its interest expenses. This level of coverage suggests a moderate ability to meet interest obligations.
Looking back at the historical data, we observe that the interest coverage ratio has ranged from negative values to double digits. The negative value in March 31, 2024, is a point of concern as it indicates that the company's operating income was insufficient to cover its interest expenses during that period.
Overall, the interest coverage ratio for Johnson Controls International PLC has shown variability, with periods of stronger and weaker coverage. It is important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Sep 30, 2024
See also:
Johnson Controls International PLC Interest Coverage (Quarterly Data)