Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Johnson Controls International plc, liquidity ratios (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).
- Current Ratio
- The current ratio exhibits notable fluctuations over the analyzed period. Initially, it decreased from 1.03 at the end of 2018 to a low of 0.95 in the first quarter of 2019, then rose sharply to 1.41 by mid-2019. Following this peak, a gradual decline is observed, with values predominantly staying slightly above or around 1.0 from late 2019 through 2024, indicating a relatively stable but modest short-term liquidity position. The ratio dipped to 0.87 by the first quarter of 2024, the lowest in the recent periods, suggesting a potential weakening in the company's ability to cover current liabilities with current assets.
- Quick Ratio
- The quick ratio demonstrates considerable variation as well. Starting at 0.49 in late 2018, it dropped slightly before a significant jump to 1.05 in mid-2019, which indicates a period where the company's most liquid assets were sufficient to cover current liabilities. However, this was followed by a steady decline with values stabilizing mostly between 0.55 and 0.88 in subsequent quarters. The trend since early 2022 shows a mild downward movement, ending at 0.55 in early 2024, implying that the company's immediate liquidity position without relying on inventory has weakened over time.
- Cash Ratio
- The cash ratio remains consistently low throughout the entire period, reflecting limited cash and cash equivalents relative to current liabilities. It spiked briefly from 0.02 at the end of 2018 to 0.40 in mid-2019, then quickly reverted to lower levels around 0.15 to 0.24 in subsequent quarters. A declining trend is visible from early 2021 onward, with the ratio falling to as low as 0.06 by early 2024. This suggests a tightening in the availability of readily accessible cash assets, underscoring a conservative cash management or possible constraints in liquid resources.
Current Ratio
Johnson Controls International plc, current ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
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).
1 Q2 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit some volatility over the observed period. Initially, there is an upward trend from 11,955 million USD at the end of 2018 to a peak around 13,042 million USD by mid-2019. This is followed by a decline during late 2019 and the first half of 2020, reaching a low of 9,955 million USD in March 2020. Afterwards, current assets generally recover, fluctuating modestly and reaching values above 12,000 million USD in early 2023. However, there is no sustained strong growth trend, with values hovering between roughly 10,000 and 12,700 million USD for most of the timeframe.
- Current Liabilities
- Current liabilities show a more irregular pattern. There is a notable spike in early 2019, reaching 13,441 million USD in March, followed by a steep drop to 9,242 million USD by June 2019. The following quarters demonstrate fluctuations, with liabilities ranging from around 8,000 to 12,400 million USD. Starting in 2022, current liabilities consistently rise, peaking near 13,599 million USD by March 2024, which suggests increasing short-term obligations towards the end of the period.
- Current Ratio
- The current ratio generally oscillates around the critical benchmark of 1.0. Early data shows ratios below or near 1.0, dipping to as low as 0.95 in March 2019. A peak is observed in mid-2019, with ratios above 1.4, reflecting stronger liquidity at that time. From late 2019 to early 2022, the ratio tends to stay slightly above or just at 1.0, indicating a balanced ability to cover current liabilities with current assets. However, from 2022 onward, the ratio declines gradually, reaching 0.87 by March 2024. This downward trend reflects a weakening liquidity position, potentially signaling increasing pressure on short-term financial stability.
- Summary Insights
- The data reveals a moderately stable but fluctuating liquidity profile over the monitored years. While current assets have periodic rises and falls, there is a stronger upward trend in current liabilities, especially in the last two years. The decreasing current ratio toward the end of the period highlights potential liquidity concerns, as current liabilities begin to outpace current assets more significantly. This suggests a need for closer monitoring of working capital management and potential adjustments to improve short-term financial resilience.
Quick Ratio
Johnson Controls International plc, quick ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||
| Accounts receivable, less allowance for expected credit losses | |||||||||||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
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).
1 Q2 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in liquidity and short-term financial position over the examined periods.
- Total Quick Assets
- The total quick assets show fluctuation throughout the periods. Initially, there was a moderate increase from 5,734 million USD at the end of 2018 to a peak of 9,718 million USD in the second quarter of 2019. After this peak, the value declined, stabilizing between 6,498 million and 7,559 million USD over the subsequent periods. In the most recent quarters, total quick assets show some variability but generally hover around the 7,000 million USD mark, ending at 7,531 million USD in the first quarter of 2024. This pattern indicates intermittent pressures on liquid assets without a clear upward or downward long-term trend.
- Current Liabilities
- Current liabilities exhibit a less consistent pattern but generally trend upwards across the periods. Starting from 11,653 million USD at the end of 2018, current liabilities initially increased significantly, reaching a high of 13,441 million USD in the first quarter of 2019, followed by a substantial decline to around 9,242 million USD by mid-2019. After this decline, current liabilities rose again steadily, surpassing the initial levels and reaching new highs, peaking at 13,599 million USD in the first quarter of 2024. This suggests growing short-term obligations over time, which might exert pressure on liquidity management.
- Quick Ratio
- The quick ratio, indicating immediate liquidity relative to current liabilities, reflects the interaction between the total quick assets and current liabilities trends. Initially, the ratio was below 0.5, suggesting limited immediate liquidity coverage. A sharp improvement occurred in the first half of 2019, with the ratio peaking at 1.05 and 0.95 in the first two quarters, implying a temporarily strong liquidity position. Subsequently, the quick ratio declined steadily to values between 0.55 and 0.83 during the following years, frequently staying below 0.7 in recent quarters. The declining trend in the quick ratio despite fluctuating quick assets points to the disproportionate increase in current liabilities. This trend suggests a potential deterioration in short-term liquidity and indicates tighter liquidity constraints in recent periods.
Overall, the data indicate that while quick assets have shown periods of increase, they have not kept pace with the rise in current liabilities. The resulting decline in the quick ratio highlights increasing liquidity risk and the need for careful management of short-term obligations to maintain financial stability.
Cash Ratio
Johnson Controls International plc, cash ratio calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||||||
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).
1 Q2 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit significant volatility over the observed periods. Initially, a sharp increase is noticeable from 292 million US dollars at the end of 2018 to a peak of 3,685 million US dollars in mid-2019, followed by a decline to just over 1,000 million by early 2020. Subsequent periods show fluctuating values with intermittent rises and falls, notably decreasing to 835 million in late 2023 and rebounding somewhat to 843 million in early 2024. This inconsistent trend suggests variability in cash holdings, possibly reflecting operational cash flow changes or shifts in liquidity management.
- Current Liabilities
- Current liabilities demonstrate a general upward trend across the timeframe. Starting at 11,653 million US dollars at the end of 2018, liabilities peak and trough somewhat mid-cycle but trend upwards to 13,599 million US dollars by the first quarter of 2024. This rising trajectory indicates growing short-term obligations or accrued expenses, which could signal increased financial commitments or operational scaling.
- Cash Ratio
- The cash ratio, representing the company's liquidity position relative to its current liabilities, remains low throughout the periods, fluctuating between 0.02 and 0.40 with a declining trend towards the end. After an initial spike to 0.40 in mid-2019, it generally stabilizes around 0.1 to 0.2, finally dipping to 0.06 by early 2024. This diminishing ratio indicates a weakening liquidity cushion relative to current liabilities, potentially increasing financial risk.
- Overall Insights
- The data reflects a company experiencing fluctuating cash asset levels amid steadily increasing current liabilities, leading to a declining cash ratio. Such patterns suggest increased pressure on liquidity and a need for careful financial management to ensure short-term obligations can be met. The notable volatility in cash assets may point to variable cash inflows or outflows linked to operational or strategic activities, while the sustained rise in liabilities warrants close monitoring to avoid liquidity shortfalls.