Johnson Controls International PLC (JCI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.65 | 2.71 | 2.78 | 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 |
Based on the provided data, Johnson Controls International PLC has consistently maintained a relatively low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 across all the reported periods. This indicates that the company has not relied heavily on debt to finance its operations and investments, resulting in a strong financial position in terms of solvency.
However, the financial leverage ratio has fluctuated over the periods, ranging from 2.20 to 2.78. This ratio indicates the extent to which the company is utilizing debt to finance its assets. A higher financial leverage ratio suggests higher financial risk due to increased reliance on debt financing.
Overall, while the company has displayed stability and strength in terms of low debt ratios, the fluctuating financial leverage ratio suggests that Johnson Controls International PLC has been somewhat inconsistent in its debt management practices. Monitoring and managing this ratio will be crucial to ensuring a stable and sustainable capital structure in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Johnson Controls International PLC has shown fluctuations over the periods provided in the table. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
From the data, we can see that the interest coverage ratio ranged from a low of -0.40 to a high of 18.96. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses, which was the case in March 2024 where the ratio was negative. This implies a potential financial risk for the company.
The trend in the interest coverage ratio shows variability, with some periods exhibiting stronger ability to cover interest expenses compared to others. For instance, the ratio was notably high in December 2019 and March 2022, indicating a robust ability to cover interest payments during those periods.
Overall, it is essential for Johnson Controls International PLC to ensure a consistently healthy interest coverage ratio above 1 to demonstrate financial stability and sufficient earnings to fulfill its interest obligations. Investors and creditors often monitor this ratio closely to assess the company's creditworthiness and financial health.
See also:
Johnson Controls International PLC Solvency Ratios (Quarterly Data)