Common-Size Income Statement
Quarterly Data
Johnson Controls International plc, common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
The financial performance from December 2017 through March 2024 exhibits significant volatility in operating margins and net profitability, characterized by a general improvement in gross margins offset by inconsistent operating expenses and non-recurring items.
- Revenue Composition
- The revenue mix is dominated by products and systems, which typically fluctuate between 71% and 81% of net sales. A notable shift occurred between December 2018 and December 2020, where the proportion of services increased from approximately 18% to a peak of 28.87%. In more recent periods, the mix has stabilized, with products and systems returning to the 74% to 76% range and services settling between 23% and 26%.
- Gross Profitability Trends
- Gross profit margins demonstrate a positive long-term trajectory, rising from 29.17% in December 2017 to a peak of 34.73% in March 2021. This improvement is driven by a corresponding decrease in the cost of sales, which dropped from over 70% of net sales in 2017 to lows of approximately 65% in 2021. While margins have slightly moderated to approximately 32.56% by March 2024, the overall capacity for gross profit generation has remained higher than the initial baseline.
- Operating Expense Analysis
- Operating income is subject to substantial volatility due to fluctuations in selling, general, and administrative (SG&A) expenses and intermittent restructuring costs. SG&A expenses have varied widely, from a low of 17.66% in September 2018 to a significant peak of 33.60% in March 2024. Restructuring and impairment costs appear sporadically, with major impacts observed in June 2020 (-11.42%) and March 2022 (-6.30%). These factors combined have led to inconsistent operating margins, ranging from a high of 12.20% in September 2021 to a loss of 4.84% in March 2024.
- Net Income and Non-Recurring Items
- The bottom line is heavily influenced by non-continuing operations and tax fluctuations. A significant anomaly occurred in June 2019, where net income reached 66.28% of net sales, almost entirely driven by a 62.80% contribution from discontinued operations. Excluding this outlier, net income attributable to the parent company has been inconsistent, showing strong performance in mid-2021 and mid-2023, but ending with a deficit of 4.13% of net sales in March 2024.
- Financing and Other Income
- Net financing charges have remained relatively stable as a percentage of net sales, generally hovering between 0.7% and 1.6%. Equity income has provided a consistent, modest positive contribution, typically ranging between 0.3% and 1.2% of net sales throughout the analyzed period.
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