Return on Equity (ROE)
since 2005
Calculation
Johnson Controls International plc, ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Johnson Controls1 | ÷ | Shareholders’ equity attributable to Johnson Controls1 | |
|---|---|---|---|---|---|---|---|
| Sep 30, 2023 | 11.18% | = | 100 | × | 1,849) | ÷ | 16,545) |
| Sep 30, 2022 | 9.42% | = | 100 | × | 1,532) | ÷ | 16,268) |
| Sep 30, 2021 | 9.32% | = | 100 | × | 1,637) | ÷ | 17,562) |
| Sep 30, 2020 | 3.62% | = | 100 | × | 631) | ÷ | 17,447) |
| Sep 30, 2019 | 28.71% | = | 100 | × | 5,674) | ÷ | 19,766) |
| Sep 30, 2018 | 10.22% | = | 100 | × | 2,162) | ÷ | 21,164) |
| Sep 30, 2017 | 7.88% | = | 100 | × | 1,611) | ÷ | 20,447) |
| Sep 30, 2016 | -3.60% | = | 100 | × | (868) | ÷ | 24,118) |
| Sep 30, 2015 | 15.06% | = | 100 | × | 1,563) | ÷ | 10,376) |
| Sep 30, 2014 | 10.74% | = | 100 | × | 1,215) | ÷ | 11,311) |
| Sep 30, 2013 | 9.57% | = | 100 | × | 1,178) | ÷ | 12,314) |
| Sep 30, 2012 | 10.61% | = | 100 | × | 1,226) | ÷ | 11,555) |
| Sep 30, 2011 | 14.71% | = | 100 | × | 1,624) | ÷ | 11,042) |
| Sep 30, 2010 | 14.80% | = | 100 | × | 1,491) | ÷ | 10,071) |
| Sep 30, 2009 | -3.70% | = | 100 | × | (338) | ÷ | 9,138) |
| Sep 30, 2008 | 10.39% | = | 100 | × | 979) | ÷ | 9,424) |
| Sep 30, 2007 | 14.06% | = | 100 | × | 1,252) | ÷ | 8,907) |
| Sep 30, 2006 | 13.98% | = | 100 | × | 1,028) | ÷ | 7,355) |
| Sep 30, 2005 | 15.01% | = | 100 | × | 909) | ÷ | 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 return on equity (ROE) for the period between 2005 and 2023 is characterized by significant volatility, with several cycles of expansion and contraction. While the metric shows a general tendency to fluctuate between 9% and 15%, there are distinct anomalies driven by substantial shifts in both net income and the total shareholders' equity base.
- Initial Stability and Economic Impact (2005–2009)
- From 2005 to 2008, ROE remained relatively stable, peaking at 15.01% before declining to 10.39%. A sharp contraction occurred in 2009, where ROE fell to -3.70%. This decline was directly attributable to a net loss of 338 million US$, marking the first major disruption in the analyzed period.
- Recovery and Equity Expansion (2010–2016)
- A rapid recovery followed in 2010, with ROE rebounding to 14.80%. Between 2011 and 2014, a gradual downward trend was observed, with ROE dipping as low as 9.57% in 2013. Although ROE recovered to 15.06% in 2015, the following year saw a significant drop to -3.60%. This 2016 decline coincided with a substantial increase in shareholders' equity, which more than doubled from 10.38 billion US$ in 2015 to 24.12 billion US$ in 2016, combined with a net loss of 868 million US$.
- Exceptional Peak and Subsequent Normalization (2017–2023)
- Following the 2016 low, ROE improved to 7.88% in 2017 and 10.22% in 2018. A sharp, exceptional spike occurred in 2019, with ROE reaching a period high of 28.71%. This peak was driven by a surge in net income to 5.67 billion US$, the highest recorded value in the dataset. A subsequent sharp decline to 3.62% in 2020 suggests a period of diminished profitability. Since 2021, a steady upward trajectory has emerged, with ROE climbing from 9.32% to 11.18% by September 30, 2023.
Overall, the relationship between net income and equity has been inconsistent. The equity base grew steadily from 2005 to 2015, experienced a structural jump in 2016, and has since stabilized between 16 billion and 21 billion US$. The volatility in ROE is primarily driven by erratic net income performance rather than consistent changes in the capital structure.
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Comparison to Competitors
Johnson Controls International plc, ROE, 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 | 11.18% | — | 53.02% | 16.90% | 34.63% | 35.68% | 101.24% | 5.34% |
| Sep 30, 2022 | 9.42% | — | 42.25% | 14.45% | 0.62% | 29.74% | 61.86% | 7.16% |
| Sep 30, 2021 | 9.32% | — | 39.37% | 13.06% | -16.17% | 29.85% | 57.62% | 5.29% |
| Sep 30, 2020 | 3.62% | — | 19.56% | 9.44% | 16.04% | 27.23% | 113.60% | -4.88% |
| Sep 30, 2019 | 28.71% | — | 41.77% | 13.75% | -17.58% | 33.22% | 199.23% | 13.25% |
| Sep 30, 2018 | 10.22% | 3,085.55% | 43.79% | 13.32% | -72.16% | 37.21% | 361.98% | 13.70% |
| Sep 30, 2017 | 7.88% | 2,309.01% | 5.50% | 17.30% | -9.00% | 9.58% | — | 15.37% |
| Sep 30, 2016 | -3.60% | 599.14% | -0.51% | 12.90% | 11.65% | 24.83% | 350.89% | 18.33% |
| Sep 30, 2015 | 15.06% | 81.70% | 14.19% | 13.03% | -6.23% | 26.08% | 116.40% | 27.81% |
| Sep 30, 2014 | 10.74% | 62.85% | 22.06% | 11.36% | 11.89% | 24.01% | 106.29% | 19.93% |
| Sep 30, 2013 | 9.57% | 30.82% | 18.21% | 11.08% | 10.00% | 22.47% | 60.61% | 17.95% |
| Sep 30, 2012 | 10.61% | 66.47% | 32.40% | 8.07% | 11.09% | 22.55% | 7,038.46% | 19.80% |
| Sep 30, 2011 | 14.71% | 114.31% | 38.25% | 18.07% | 12.15% | 19.13% | 265.23% | 22.76% |
| Sep 30, 2010 | 14.80% | 119.56% | 24.94% | 12.62% | 9.79% | 18.96% | 78.91% | 20.45% |
| Sep 30, 2009 | -3.70% | 61.65% | 10.24% | 5.65% | 9.40% | 24.34% | 73.24% | 19.08% |
| Sep 30, 2008 | 10.39% | — | 58.44% | 16.75% | 16.63% | 38.85% | 112.29% | 29.46% |
| Sep 30, 2007 | 14.06% | 45.25% | 39.86% | 19.22% | 19.22% | 26.50% | 30.93% | 19.78% |
| Sep 30, 2006 | 13.98% | 46.74% | 51.57% | 23.14% | 18.55% | 21.43% | 36.74% | 21.58% |
| Sep 30, 2005 | 15.01% | 23.26% | 33.85% | 21.31% | 14.95% | 14.71% | 23.20% | 18.06% |
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, ROE, long-term trends, comparison to sector (capital goods)
| Johnson Controls International plc | Capital Goods | |
|---|---|---|
| Sep 30, 2023 | 11.18% | 27.89% |
| Sep 30, 2022 | 9.42% | 13.39% |
| Sep 30, 2021 | 9.32% | 8.48% |
| Sep 30, 2020 | 3.62% | 4.42% |
| Sep 30, 2019 | 28.71% | 18.11% |
| Sep 30, 2018 | 10.22% | 11.28% |
| Sep 30, 2017 | 7.88% | 10.13% |
| Sep 30, 2016 | -3.60% | 20.08% |
| Sep 30, 2015 | 15.06% | 10.42% |
| Sep 30, 2014 | 10.74% | 18.16% |
| Sep 30, 2013 | 9.57% | 15.14% |
| Sep 30, 2012 | 10.61% | 17.58% |
| Sep 30, 2011 | 14.71% | 19.63% |
| Sep 30, 2010 | 14.80% | 15.88% |
| Sep 30, 2009 | -3.70% | 13.47% |
| Sep 30, 2008 | 10.39% | 24.97% |
| Sep 30, 2007 | 14.06% | 22.64% |
| Sep 30, 2006 | 13.98% | 22.16% |
| Sep 30, 2005 | 15.01% | 17.27% |
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, ROE, long-term trends, comparison to industry (industrials)
| Johnson Controls International plc | Industrials | |
|---|---|---|
| Sep 30, 2023 | 11.18% | 27.70% |
| Sep 30, 2022 | 9.42% | 15.38% |
| Sep 30, 2021 | 9.32% | 15.38% |
| Sep 30, 2020 | 3.62% | 0.24% |
| Sep 30, 2019 | 28.71% | 14.56% |
| Sep 30, 2018 | 10.22% | 17.95% |
| Sep 30, 2017 | 7.88% | 18.24% |
| Sep 30, 2016 | -3.60% | 21.69% |
| Sep 30, 2015 | 15.06% | 16.11% |
| Sep 30, 2014 | 10.74% | 19.68% |
| Sep 30, 2013 | 9.57% | 16.40% |
| Sep 30, 2012 | 10.61% | 17.20% |
| Sep 30, 2011 | 14.71% | 20.10% |
| Sep 30, 2010 | 14.80% | 16.41% |
| Sep 30, 2009 | -3.70% | 12.84% |
| Sep 30, 2008 | 10.39% | 20.74% |
| Sep 30, 2007 | 14.06% | 20.36% |
| Sep 30, 2006 | 13.98% | 32.16% |
| Sep 30, 2005 | 15.01% | 7.80% |
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).