Debt to Equity
since 2005
Calculation
Johnson Controls International plc, debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Shareholders’ equity attributable to Johnson Controls1 | |
|---|---|---|---|---|---|
| Sep 30, 2023 | 0.53 | = | 8,848) | ÷ | 16,545) |
| Sep 30, 2022 | 0.55 | = | 8,960) | ÷ | 16,268) |
| Sep 30, 2021 | 0.44 | = | 7,740) | ÷ | 17,562) |
| Sep 30, 2020 | 0.45 | = | 7,819) | ÷ | 17,447) |
| Sep 30, 2019 | 0.37 | = | 7,219) | ÷ | 19,766) |
| Sep 30, 2018 | 0.52 | = | 10,995) | ÷ | 21,164) |
| Sep 30, 2017 | 0.66 | = | 13,572) | ÷ | 20,447) |
| Sep 30, 2016 | 0.68 | = | 16,353) | ÷ | 24,118) |
| Sep 30, 2015 | 0.64 | = | 6,610) | ÷ | 10,376) |
| Sep 30, 2014 | 0.59 | = | 6,680) | ÷ | 11,311) |
| Sep 30, 2013 | 0.45 | = | 5,498) | ÷ | 12,314) |
| Sep 30, 2012 | 0.53 | = | 6,068) | ÷ | 11,555) |
| Sep 30, 2011 | 0.47 | = | 5,146) | ÷ | 11,042) |
| Sep 30, 2010 | 0.34 | = | 3,389) | ÷ | 10,071) |
| Sep 30, 2009 | 0.43 | = | 3,966) | ÷ | 9,138) |
| Sep 30, 2008 | 0.42 | = | 3,944) | ÷ | 9,424) |
| Sep 30, 2007 | 0.50 | = | 4,418) | ÷ | 8,907) |
| Sep 30, 2006 | 0.64 | = | 4,743) | ÷ | 7,355) |
| Sep 30, 2005 | 0.39 | = | 2,342) | ÷ | 6,058) |
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), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
1 US$ in millions
The leverage profile of the organization from 2005 to 2023 is characterized by periods of relative stability punctuated by a significant balance sheet expansion in 2016, followed by a strategic deleveraging phase. The debt-to-equity ratio has historically fluctuated between a low of 0.34 and a peak of 0.68, indicating a moderate approach to financial leverage over the long term.
- Total Debt Dynamics
- Total debt remained relatively contained between 2.3 billion and 6.7 billion US dollars from 2005 through 2015. A substantial increase occurred in 2016, where debt peaked at 16.35 billion US dollars. This was followed by a consistent downward trend through 2019, reaching 7.2 billion US dollars. Since 2020, debt levels have stabilized, oscillating between 7.7 billion and 9.0 billion US dollars.
- Shareholders' Equity Trends
- Equity attributable to the company grew steadily from 6.1 billion US dollars in 2005 to 12.3 billion US dollars by 2013. A sharp increase was recorded in 2016, reaching a maximum of 24.1 billion US dollars. Following this peak, equity levels experienced a gradual decline and subsequent stabilization, ending the period at 16.5 billion US dollars in 2023.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio exhibited three distinct phases. The first phase (2005–2010) saw the ratio fluctuate between 0.34 and 0.64. The second phase (2011–2016) was marked by a gradual climb to a peak of 0.68, coinciding with the expansion of both debt and equity. The third phase (2017–2023) involved a rapid contraction of the ratio to 0.37 by 2019, followed by a moderate increase to 0.53 by 2023.
The correlation between the spikes in total debt and shareholders' equity in 2016 suggests a significant structural event that expanded the balance sheet. The subsequent reduction in the debt-to-equity ratio through 2019 indicates a period of aggressive debt repayment or restructuring that outpaced the reduction in equity. As of September 30, 2023, the ratio of 0.53 represents a return to a mid-range leverage position consistent with the company's historical averages.
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Comparison to Competitors
Johnson Controls International plc, debt to equity, long-term trends, comparison to competitors
| Johnson Controls International plc | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Sep 30, 2023 | 0.53 | — | 1.94 | 0.49 | 0.77 | 1.29 | 2.55 | 0.73 |
| Sep 30, 2022 | 0.55 | — | 2.33 | 0.51 | 0.89 | 1.17 | 1.68 | 0.44 |
| Sep 30, 2021 | 0.44 | — | 2.29 | 0.52 | 0.87 | 1.06 | 1.07 | 0.43 |
| Sep 30, 2020 | 0.45 | — | 2.42 | 0.54 | 2.11 | 1.28 | 2.02 | 0.44 |
| Sep 30, 2019 | 0.37 | — | 2.58 | 0.52 | 3.21 | 0.87 | 4.05 | 1.04 |
| Sep 30, 2018 | 0.52 | 40.85 | 2.60 | 0.47 | 3.55 | 0.89 | 9.04 | 1.18 |
| Sep 30, 2017 | 0.66 | 31.32 | 2.55 | 0.45 | 2.09 | 1.04 | — | 0.93 |
| Sep 30, 2016 | 0.68 | 12.18 | 2.80 | 0.56 | 1.80 | 0.81 | 9.45 | 0.87 |
| Sep 30, 2015 | 0.64 | 1.57 | 2.57 | 0.56 | 2.02 | 0.66 | 4.62 | 0.75 |
| Sep 30, 2014 | 0.59 | 1.05 | 2.35 | 0.57 | 2.85 | 0.49 | 1.81 | 0.63 |
| Sep 30, 2013 | 0.45 | 0.65 | 1.81 | 0.57 | 2.93 | 0.51 | 1.25 | 0.64 |
| Sep 30, 2012 | 0.53 | 1.77 | 2.29 | 0.72 | 3.37 | 0.58 | 157.90 | 0.90 |
| Sep 30, 2011 | 0.47 | 3.52 | 2.69 | 0.51 | 3.89 | 0.70 | 6.45 | 0.47 |
| Sep 30, 2010 | 0.34 | 4.49 | 2.63 | 0.47 | 4.02 | 0.62 | 1.35 | 0.48 |
| Sep 30, 2009 | 0.43 | 6.07 | 3.62 | 0.51 | 4.35 | 0.86 | 1.22 | 0.49 |
| Sep 30, 2008 | 0.42 | — | 5.84 | 0.68 | 5.00 | 1.17 | 1.24 | 0.72 |
| Sep 30, 2007 | 0.50 | 0.91 | 3.20 | 0.66 | 4.45 | 0.83 | 0.44 | 0.43 |
| Sep 30, 2006 | 0.64 | 2.01 | 3.98 | 0.63 | 3.85 | 0.52 | 0.64 | 0.46 |
| Sep 30, 2005 | 0.39 | 0.97 | 3.05 | 0.65 | 3.39 | 0.45 | 0.61 | 0.48 |
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), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Sector (Capital Goods)
Johnson Controls International plc, debt to equity, long-term trends, comparison to sector (capital goods)
| Johnson Controls International plc | Capital Goods | |
|---|---|---|
| Sep 30, 2023 | 0.53 | 1.54 |
| Sep 30, 2022 | 0.55 | 1.33 |
| Sep 30, 2021 | 0.44 | 1.26 |
| Sep 30, 2020 | 0.45 | 1.75 |
| Sep 30, 2019 | 0.37 | 2.08 |
| Sep 30, 2018 | 0.52 | 2.03 |
| Sep 30, 2017 | 0.66 | 1.74 |
| Sep 30, 2016 | 0.68 | 1.60 |
| Sep 30, 2015 | 0.64 | 1.64 |
| Sep 30, 2014 | 0.59 | 2.06 |
| Sep 30, 2013 | 0.45 | 2.00 |
| Sep 30, 2012 | 0.53 | 2.56 |
| Sep 30, 2011 | 0.47 | 3.04 |
| Sep 30, 2010 | 0.34 | 3.10 |
| Sep 30, 2009 | 0.43 | 3.46 |
| Sep 30, 2008 | 0.42 | 4.19 |
| Sep 30, 2007 | 0.50 | 3.21 |
| Sep 30, 2006 | 0.64 | 3.02 |
| Sep 30, 2005 | 0.39 | 2.53 |
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), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).
Comparison to Industry (Industrials)
Johnson Controls International plc, debt to equity, long-term trends, comparison to industry (industrials)
| Johnson Controls International plc | Industrials | |
|---|---|---|
| Sep 30, 2023 | 0.53 | 1.52 |
| Sep 30, 2022 | 0.55 | 1.42 |
| Sep 30, 2021 | 0.44 | 1.37 |
| Sep 30, 2020 | 0.45 | 1.82 |
| Sep 30, 2019 | 0.37 | 1.82 |
| Sep 30, 2018 | 0.52 | 1.85 |
| Sep 30, 2017 | 0.66 | 1.65 |
| Sep 30, 2016 | 0.68 | 1.54 |
| Sep 30, 2015 | 0.64 | 1.51 |
| Sep 30, 2014 | 0.59 | 1.89 |
| Sep 30, 2013 | 0.45 | 1.79 |
| Sep 30, 2012 | 0.53 | 2.29 |
| Sep 30, 2011 | 0.47 | 2.60 |
| Sep 30, 2010 | 0.34 | 2.68 |
| Sep 30, 2009 | 0.43 | 3.01 |
| Sep 30, 2008 | 0.42 | 3.54 |
| Sep 30, 2007 | 0.50 | 2.73 |
| Sep 30, 2006 | 0.64 | 2.49 |
| Sep 30, 2005 | 0.39 | 2.42 |
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), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30), 10-K (reporting date: 2007-09-30), 10-K (reporting date: 2006-09-30), 10-K (reporting date: 2005-09-30).