Name: Johnson Controls International plc (NYSE:JCI) | Analysis of Inventory
Creator: Stock Analysis on Net

Analysis of Inventory

Inventory Disclosure

Inventory Disclosure

Download chart

Johnson Controls International plc, balance sheet: inventory

US$ in millions

	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018
Raw materials and supplies	1,203)	1,009)	769)	629)	588)	990)
Work-in-process	226)	196)	166)	142)	176)	545)
Finished goods	1,347)	1,305)	1,122)	1,002)	1,050)	1,689)
Inventories	2,776)	2,510)	2,057)	1,773)	1,814)	3,224)

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30).

Total inventory levels exhibited a significant contraction between 2018 and 2019, decreasing from 3,224 million USD to 1,814 million USD. Following a period of relative stability in 2020, a consistent upward trend has been observed from 2021 through 2023, with total inventories rising to 2,776 million USD. This trajectory indicates a substantial reduction in inventory holdings followed by a multi-year phase of accumulation.

Raw Materials and Supplies: This category experienced a sharp decline from 990 million USD in 2018 to 588 million USD in 2019. However, it has since demonstrated the most aggressive growth of all inventory components, increasing steadily every year to reach 1,203 million USD by September 30, 2023. By 2022, raw material levels had surpassed 2018 benchmarks, suggesting a strategic shift toward higher stockpiling of inputs.
Work-in-Process (WIP): Work-in-process inventory saw a dramatic reduction between 2018 and 2019, falling from 545 million USD to 176 million USD. While a gradual recovery has occurred since 2020, with levels reaching 226 million USD in 2023, the value remains significantly below the 2018 baseline. This suggests a permanent shift in production efficiency or a change in the volume of goods undergoing assembly at year-end.
Finished Goods: Finished goods constituted the largest portion of total inventory throughout the period. After a significant drop from 1,689 million USD in 2018 to 1,050 million USD in 2019, the balance trended upward to 1,347 million USD by 2023. Despite this recovery, finished goods levels have not returned to the peak observed in 2018, indicating a more lean approach to completed stock management compared to the start of the analyzed period.

The compositional shift in inventory is notable; raw materials have grown to represent a larger share of the total inventory balance in 2023 compared to 2018. The overall pattern suggests a transition from a high-volume finished goods model in 2018 to a strategy characterized by increased raw material buffers and reduced work-in-process holdings in recent years.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?