Name: Johnson Controls International plc (NYSE:JCI) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Johnson Controls International plc, consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018
Short-term debt	385)	669)	8)	31)	10)	1,315)
Current portion of long-term debt	645)	865)	226)	262)	501)	26)
Accounts payable	4,268)	4,241)	3,746)	3,120)	3,582)	4,644)
Accrued compensation and benefits	958)	978)	1,008)	838)	953)	1,146)
Deferred revenue	1,996)	1,768)	1,637)	1,435)	1,407)	1,326)
Current liabilities held for sale	—)	236)	—)	—)	44)	—)
Other current liabilities	2,832)	2,482)	2,473)	2,562)	2,573)	2,793)
Current liabilities	11,084)	11,239)	9,098)	8,248)	9,070)	11,250)
Long-term debt, less current portion	7,818)	7,426)	7,506)	7,526)	6,708)	9,654)
Pension and postretirement benefit obligations	278)	358)	628)	1,140)	1,044)	717)
Noncurrent liabilities held for sale	—)	62)	—)	—)	—)	—)
Other noncurrent liabilities	5,368)	5,671)	5,905)	5,368)	4,636)	4,718)
Noncurrent liabilities	13,464)	13,517)	14,039)	14,034)	12,388)	15,089)
Total liabilities	24,548)	24,756)	23,137)	22,282)	21,458)	26,339)
Ordinary shares, par value $0.01	7)	7)	7)	8)	8)	10)
Ordinary A shares, par value €1.00; none outstanding	—)	—)	—)	—)	—)	—)
Preferred shares, par value $0.01; none outstanding	—)	—)	—)	—)	—)	—)
Ordinary shares held in treasury, at cost	(1,240)	(1,203)	(1,152)	(1,119)	(1,086)	(1,053)
Capital in excess of par value	17,349)	17,224)	17,116)	16,865)	16,812)	16,549)
Retained earnings	1,384)	1,151)	2,025)	2,469)	4,827)	6,604)
Accumulated other comprehensive loss	(955)	(911)	(434)	(776)	(795)	(946)
Shareholders’ equity attributable to Johnson Controls	16,545)	16,268)	17,562)	17,447)	19,766)	21,164)
Noncontrolling interests	1,149)	1,134)	1,191)	1,086)	1,063)	1,294)
Total equity	17,694)	17,402)	18,753)	18,533)	20,829)	22,458)
Total liabilities and equity	42,242)	42,158)	41,890)	40,815)	42,287)	48,797)

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 balance sheet demonstrates a general contraction in total capital, with total liabilities and equity decreasing from 48,797 million US$ in 2018 to 42,242 million US$ in 2023. While total liabilities have remained relatively stable, there has been a notable erosion of total shareholders' equity over the same period.

Current Liabilities Analysis: Current liabilities exhibited a fluctuating trend, ending at 11,084 million US$ in 2023, slightly below the 2018 level of 11,250 million US$. A significant shift in debt structure is observable: short-term debt dropped precipitously from 1,315 million US$ in 2018 to a low of 8 million US$ in 2021, before rising again to 385 million US$ by 2023. Conversely, the current portion of long-term debt increased from 26 million US$ in 2018 to 645 million US$ in 2023, suggesting a shift toward maturing long-term obligations. Deferred revenue showed a consistent upward trajectory, growing from 1,326 million US$ in 2018 to 1,996 million US$ in 2023, indicating an increase in advance payments from customers.
Noncurrent Liabilities Analysis: Noncurrent liabilities decreased from 15,089 million US$ in 2018 to 13,464 million US$ in 2023. Long-term debt, less the current portion, saw a primary reduction between 2018 and 2019, moving from 9,654 million US$ to 6,708 million US$, before stabilizing around 7,818 million US$ by 2023. A substantial decrease in pension and postretirement benefit obligations is evident, falling from a peak of 1,140 million US$ in 2020 to 278 million US$ in 2023, which suggests significant funding improvements or settlement of these obligations.
Shareholders' Equity Analysis: Total equity experienced a sustained decline, falling from 22,458 million US$ in 2018 to 17,694 million US$ in 2023. The primary driver of this decline was the sharp reduction in retained earnings, which plummeted from 6,604 million US$ in 2018 to 1,384 million US$ in 2023. This trend was further exacerbated by an increase in ordinary shares held in treasury, which rose from 1,053 million US$ in 2018 to 1,240 million US$ in 2023, indicating ongoing share buyback activity. Capital in excess of par value remained relatively stable with a slight increase to 17,349 million US$ by 2023.
Capital Structure and Solvency Trends: The relationship between liabilities and equity shifted over the six-year period. In 2018, total liabilities were approximately 1.17 times the total equity. By 2023, this ratio increased to approximately 1.39, as total liabilities remained high while the equity base contracted. This indicates an increase in financial leverage and a higher reliance on debt relative to equity to fund the company's assets.

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