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Johnson Controls International plc (NYSE:JCI)

This company has been moved to the archive! The financial data has not been updated since May 1, 2024.

Common-Size Income Statement

Johnson Controls International plc, common-size consolidated income statement

Microsoft Excel
12 months ended: Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018
Products and systems 75.58 76.18 72.68 72.83 73.89 80.68
Services 24.42 23.82 27.32 27.17 26.11 19.32
Net sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Products and systems -52.37 -53.49 -50.06 -51.09 -52.47 -59.24
Services -14.15 -13.53 -15.89 -15.71 -15.43 -10.89
Cost of sales -66.52% -67.02% -65.95% -66.79% -67.90% -70.13%
Gross profit 33.48% 32.98% 34.05% 33.21% 32.10% 29.87%
Selling, general and administrative expenses -23.07 -23.50 -22.22 -25.38 -26.05 -19.14
Restructuring and impairment costs -3.97 -2.85 -1.02 -3.51 -0.98 -0.84
Operating income 6.44% 6.63% 10.81% 4.32% 5.07% 9.89%
Interest expense, net of capitalized interest costs -1.15 -0.89 -0.93 -1.08 -1.40 -1.39
Other financing charges -0.19 -0.11 -0.11 -0.12 -0.12 -0.18
Gain (loss) on debt extinguishment 0.09 0.00 0.00 0.00 -0.25 0.00
Interest income 0.07 0.02 0.04 0.10 0.25 0.09
Net foreign exchange results for financing activities 0.13 0.13 0.12 0.05 0.05 0.08
Net financing charges -1.05% -0.84% -0.87% -1.04% -1.46% -1.40%
Equity income 0.99 0.97 1.10 0.77 0.80 0.75
Income from continuing operations before income taxes 6.38% 6.76% 11.04% 4.05% 4.41% 9.24%
Income tax (provision) benefit 1.21 0.05 -3.67 -0.48 0.97 -1.65
Income from continuing operations 7.59% 6.81% 7.38% 3.56% 5.38% 7.59%
Income from discontinued operations, net of tax 0.00 0.00 0.52 0.00 19.18 0.00
Net income 7.59% 6.81% 7.90% 3.56% 24.56% 7.59%
Income attributable to noncontrolling interests -0.69 -0.75 -0.98 -0.73 -0.89 -0.70
Net income attributable to Johnson Controls 6.90% 6.06% 6.92% 2.83% 23.67% 6.89%

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).

The common-size income statement analysis reveals a strategic shift in revenue composition and a general improvement in gross profitability, offset by volatility in operating expenses and restructuring costs over the six-year period ending September 30, 2023.

Revenue Mix and Gross Margin Trends
A gradual transition in the revenue stream is observed, with "Products and systems" declining from 80.68% of net sales in 2018 to 75.58% in 2023. Conversely, the "Services" segment increased its contribution from 19.32% to 24.42% during the same period, indicating a shift toward a more service-oriented business model. This shift coincides with a steady expansion of the gross profit margin, which rose from 29.87% in 2018 to 33.48% in 2023, driven by a reduction in the cost of sales as a percentage of net sales.
Operating Expense Performance
Operating income has exhibited significant volatility. While it started at 9.89% in 2018, it experienced a sharp decline to 4.32% by 2020 before rebounding to a peak of 10.81% in 2021. This fluctuation is primarily attributed to varying levels of selling, general, and administrative (SG&A) expenses, which spiked to 26.05% in 2019 before stabilizing around 23% in recent years. Additionally, restructuring and impairment costs have become more impactful over time, rising from 0.84% in 2018 to 3.97% in 2023, which has pressured operating margins.
Financing and Non-Operating Items
Net financing charges have remained relatively stable and low as a percentage of net sales, fluctuating between 0.84% and 1.46%. Interest expenses have seen a slight downward trend from 1.39% in 2018 to 1.15% in 2023. Equity income has remained consistent, contributing approximately 0.75% to 1.10% of net sales annually, providing a minor but steady positive offset to financing costs.
Net Income and Bottom-Line Analysis
The net income attributable to the parent company shows a baseline stability, generally ranging between 2.83% and 6.92% of net sales. A significant anomaly occurred in 2019, where net income surged to 23.67% due to a substantial contribution from discontinued operations, which accounted for 19.18% of net sales that year. Excluding this one-time event, the income from continuing operations has remained resilient, ending the period at 7.59% in 2023, aligned with the 2018 starting point despite the intervening operational volatility.

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