Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Johnson Controls International plc, short-term (operating) activity 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), 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).
- Inventory Turnover
- The inventory turnover ratio demonstrated a declining trend from a high of 10.11 in March 2018 to generally lower values around 5.66 to 6.42 in the most recent quarters of 2023 and early 2024. This suggests that the company is holding inventory longer over time, indicating a slower rate of inventory movement.
- Receivables Turnover
- The receivables turnover ratio showed moderate fluctuations around the range of approximately 4.0 to 4.6 throughout the periods from 2018 to 2024. This relatively stable pattern implies consistent efficiency in collecting receivables, without significant improvement or deterioration.
- Payables Turnover
- Payables turnover has gradually decreased from the peak value of 6.26 in March 2018 to around 4.0 to 4.5 in recent quarters. This denotes a slower rate of payment to suppliers, reflecting longer credit terms or delayed payments as time progressed.
- Working Capital Turnover
- The working capital turnover ratio showed considerable volatility with some very high spikes, such as 97.45 in March 2018 and 93.08 in March 2023, interspersed with much lower values like 6.86 and 7.21 in late 2018. The inconsistency and missing data points limit a clear trend interpretation, but the spikes indicate periods of significantly higher efficiency in generating sales from working capital.
- Average Inventory Processing Period
- Inventory processing days increased from 36 days in early 2018 to a peak of 64 days in mid-2023, before slightly declining to 61 days by early 2024. This lengthening period aligns with the downward trend in inventory turnover, suggesting slower inventory movement and possible build-up of stock.
- Average Receivable Collection Period
- The average collection period fluctuated moderately around an average close to 85-90 days, with a slight increase toward the later periods, reaching up to 91 days as of the first quarter of 2024. This indicates that the time taken to collect receivables has been relatively stable but exhibits a small upward trend, implying slightly slower collections.
- Operating Cycle
- The operating cycle, which combines inventory and receivables periods, extended from around 103 days in early 2018 to values reaching approximately 150 days in late 2023, indicating elongation in the time required to convert resources into cash. This lengthening cycle suggests increased capital tied in operations.
- Average Payables Payment Period
- Payables payment period increased noticeably from 58 days in March 2018 to a peak around 93 days in 2021 before declining back to near 81 days by early 2024. This suggests an initial trend toward longer payment terms with suppliers, followed by a partial reversal to shorter payment periods more recently.
- Cash Conversion Cycle
- The cash conversion cycle fluctuated between 43 and 71 days, showing periods of improvement and deterioration. Recent quarters indicate a rise up to 71 days in September 2023, reflecting a longer duration of cash being tied up in the operating cycle. This increase points to potential challenges in managing working capital efficiency.
Turnover Ratios
Average No. Days
Inventory Turnover
Johnson Controls International plc, inventory turnover 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 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Cost of sales | 4,518) | 4,102) | 4,698) | 4,702) | 4,445) | 3,977) | 4,430) | 4,414) | 4,141) | 3,971) | 4,201) | 4,144) | 3,651) | 3,613) | 3,979) | 3,511) | 3,643) | 3,773) | 4,294) | 4,307) | 3,935) | 3,739) | 5,851) | 5,648) | 5,255) | 5,266) | ||||||||
| Inventories | 2,991) | 3,006) | 2,776) | 3,092) | 3,048) | 2,895) | 2,510) | 2,574) | 2,515) | 2,425) | 2,057) | 2,064) | 1,994) | 1,913) | 1,773) | 1,996) | 2,030) | 1,953) | 1,814) | 2,050) | 2,124) | 2,027) | 3,224) | 3,509) | 3,565) | 3,459) | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Inventory turnover1 | 6.02 | 5.97 | 6.42 | 5.68 | 5.66 | 5.86 | 6.76 | 6.50 | 6.54 | 6.58 | 7.59 | 7.45 | 7.40 | 7.71 | 8.41 | 7.63 | 7.89 | 8.35 | 8.97 | 8.70 | 9.03 | 10.11 | 6.83 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 0.78 | 0.82 | 0.88 | 0.87 | 0.88 | 0.83 | 0.81 | 0.78 | 0.74 | 0.74 | 0.75 | 0.77 | 0.76 | 0.74 | 0.78 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 2.42 | 2.50 | 2.58 | 2.47 | 2.42 | 2.38 | 2.54 | 2.36 | 2.40 | 2.46 | 2.53 | 2.44 | 2.49 | 2.46 | 2.55 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 3.81 | 3.85 | 3.95 | 3.93 | 3.93 | 3.94 | 4.04 | 3.95 | 3.87 | 4.03 | 4.48 | 4.73 | 4.86 | 5.12 | 5.88 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 4.08 | 2.58 | 3.05 | 3.02 | 3.15 | 3.32 | 3.19 | 3.10 | 3.04 | 3.25 | 3.40 | 3.21 | 3.28 | 3.46 | 3.80 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 3.69 | 3.65 | 3.72 | 3.76 | 3.82 | 3.90 | 4.04 | 4.09 | 4.06 | 4.20 | 4.55 | 4.72 | 4.88 | 4.85 | 4.94 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 20.21 | 18.67 | 18.87 | 17.88 | 16.82 | 16.63 | 18.68 | 18.09 | 16.20 | 18.12 | 19.45 | 19.81 | 18.64 | 17.58 | 16.01 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 4.64 | 4.76 | 4.83 | 4.60 | 4.68 | 4.81 | 5.03 | 5.03 | 5.14 | 5.33 | 5.65 | 5.57 | 5.49 | 5.48 | 5.11 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q2 2024 Calculation
Inventory turnover
= (Cost of salesQ2 2024
+ Cost of salesQ1 2024
+ Cost of salesQ4 2023
+ Cost of salesQ3 2023)
÷ Inventories
= (4,518 + 4,102 + 4,698 + 4,702)
÷ 2,991 = 6.02
2 Click competitor name to see calculations.
The financial data reveals several notable trends and patterns with respect to cost of sales, inventories, and inventory turnover over the analyzed periods.
- Cost of Sales
- The cost of sales exhibited considerable fluctuations throughout the periods. Initially, from the end of 2017 through late 2018, the cost of sales rose steadily from approximately 5,266 million USD to a peak near 5,851 million USD. Following this, there was a sharp decline toward the end of 2018 and early 2019, dropping to levels around 3,739 million USD by December 2018. The cost then gradually increased again during 2019 but remained below the earlier peaks, showing values in the low 4,000-million range towards the end of 2019.
- During 2020, the cost of sales fluctuated, with a notable dip in mid-2020 possibly related to global market disruptions, before rising again in the latter part of 2020 and into 2021, reaching around 4,200 million USD. Thereafter, a moderate increase was observed throughout 2022 and into early 2024, culminating in levels slightly above 4,500 million USD. This indicates an overall upward trend in cost of sales from the low point in 2018-2019 through the subsequent years.
- Inventories
- Inventories demonstrated a declining trend from 2017 to late 2018, moving from approximately 3,459 million USD to around 1,814 million USD by September 2018. Subsequently, inventory levels started to increase steadily from late 2018 through 2023, eventually surpassing previous levels and reaching nearly 3,048 million USD by March 2023. There was some variability observed in the latter half of 2023 and early 2024, but inventory holdings generally maintained elevated levels compared to the mid-2018 trough.
- Inventory Turnover
- The inventory turnover ratio was only available from mid-2018 onward. It showed an initial peak near 10.11 times around late March 2018, indicating faster inventory movement during that time. After this peak, it generally declined, moving from about 9.03 down to a range between approximately 6.5 and 7.6 throughout 2019-2021. From 2022 onward, the ratio further decreased to values close to 5.7 to 6.4, illustrating a slowing in the rate at which inventories are sold or used relative to inventory levels. This declining trend suggests that while inventories increased, their turnover slowed, potentially pointing to changes in operational efficiency or market demand conditions.
In summary, cost of sales and inventories demonstrated inverse trends in the earlier periods, with cost decreasing as inventories fell, followed by both increasing over the subsequent years. Meanwhile, inventory turnover exhibited a declining pattern after a peak in early 2018, indicating slower inventory movement relative to stock levels. These insights could reflect broader market dynamics, operational adjustments, or supply chain factors impacting the company’s financial performance across these quarters.
Receivables Turnover
Johnson Controls International plc, receivables turnover 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 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Net sales | 6,699) | 6,094) | 6,906) | 7,133) | 6,686) | 6,068) | 6,725) | 6,614) | 6,098) | 5,862) | 6,392) | 6,341) | 5,594) | 5,341) | 5,954) | 5,343) | 5,444) | 5,576) | 6,274) | 6,451) | 5,779) | 5,464) | 8,370) | 8,120) | 7,475) | 7,435) | ||||||||
| Accounts receivable, less allowance for expected credit losses | 6,688) | 6,045) | 6,006) | 6,540) | 6,002) | 5,722) | 5,528) | 5,850) | 5,689) | 5,671) | 5,613) | 5,668) | 5,167) | 5,177) | 5,294) | 5,344) | 5,492) | 5,612) | 5,770) | 6,033) | 5,707) | 5,442) | 7,065) | 6,895) | 6,679) | 6,731) | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Receivables turnover1 | 4.01 | 4.44 | 4.46 | 4.07 | 4.35 | 4.46 | 4.58 | 4.27 | 4.34 | 4.27 | 4.22 | 4.10 | 4.30 | 4.27 | 4.22 | 4.24 | 4.32 | 4.29 | 4.15 | 4.32 | 4.86 | 5.41 | 4.44 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 23.31 | 25.83 | 29.37 | 24.99 | 24.99 | 24.65 | 26.46 | 22.98 | 20.27 | 25.37 | 23.58 | 27.95 | 24.76 | 23.97 | 29.75 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 6.69 | 6.86 | 6.86 | 6.95 | 6.56 | 6.37 | 6.39 | 6.59 | 6.10 | 5.46 | 5.68 | 5.97 | 5.51 | 5.07 | 5.33 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 4.97 | 5.06 | 5.18 | 5.07 | 5.01 | 5.05 | 5.09 | 5.28 | 5.15 | 5.39 | 5.95 | 5.75 | 5.72 | 5.79 | 6.15 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 6.13 | 3.90 | 4.17 | 4.61 | 4.67 | 5.00 | 4.09 | 4.19 | 4.39 | 4.43 | 4.55 | 4.83 | 4.74 | 4.59 | 4.37 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 4.81 | 4.94 | 4.87 | 4.65 | 4.52 | 4.57 | 4.77 | 4.74 | 4.45 | 4.82 | 5.04 | 4.78 | 4.89 | 4.89 | 4.78 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 24.26 | 30.86 | 31.69 | 28.14 | 19.67 | 25.61 | 26.34 | 26.06 | 18.87 | 26.02 | 34.15 | 29.27 | 25.59 | 29.81 | 33.06 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 7.06 | 6.91 | 6.36 | 6.67 | 7.13 | 6.81 | 7.36 | 7.15 | 6.28 | 7.15 | 6.66 | 6.69 | 6.99 | 6.03 | 6.11 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q2 2024 Calculation
Receivables turnover
= (Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023)
÷ Accounts receivable, less allowance for expected credit losses
= (6,699 + 6,094 + 6,906 + 7,133)
÷ 6,688 = 4.01
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibit notable fluctuations over the quarters. Initially, sales increased steadily from 7,435 million USD at the end of 2017 to a peak of 8,370 million USD in September 2018. This was followed by a sharp decline starting in the fourth quarter of 2018, dropping to 5,464 million USD. Sales showed some recovery through 2019 but remained below the earlier peak, with a low point again at 5,341 million USD in December 2020. From 2021 onward, net sales displayed a volatile pattern, with intermittent rises and falls, reaching 6,725 million USD in September 2022 but falling again to 6,094 million USD by March 2024. Overall, there is a pattern of high variability and several periods of decline after the initial growth in 2017–2018.
- Accounts Receivable (Less Allowance for Expected Credit Losses)
- The accounts receivable figures generally follow a pattern similar to net sales but with less pronounced peaks and troughs. Starting at 6,731 million USD in December 2017, they remain relatively stable with minor increases and decreases through 2018 and 2019. Notably, there is some reduction in accounts receivable during mid to late 2020, dropping to 5,177 million USD by December 2020, corresponding to the period of reduced net sales. Post-2020, the accounts receivable see a gradual increase, peaking at 6,688 million USD in June 2023 before a slight dip towards March 2024. This trend suggests ongoing credit management adaptations to changing sales volumes and possibly tighter credit controls during sales downturns.
- Receivables Turnover Ratio
- The receivables turnover ratio shows fluctuations but generally remains within a narrow range of approximately 4.0 to 5.4 over the periods recorded. It peaks at 5.41 in March 2019, indicating relatively efficient collection at that time, but hovers mostly around the low to mid-4 range in subsequent quarters. The ratio slightly declines towards the end of the data series, reaching around 4.01 in March 2024. This suggests a modest decrease in the efficiency of receivables collection over time, possibly correlated with the changes in net sales and accounts receivable balances.
- Summary of Trends
- The data reflects a period of initial growth in net sales followed by significant volatility and periodic declines. Accounts receivable levels generally track sales trends but show signs of more cautious credit management during downturns. The receivables turnover ratio indicates fairly stable but somewhat declining efficiency in receivables collection, possibly due to market conditions or company policy adjustments. These patterns indicate a challenging operating environment with fluctuating demand and ongoing adjustments in working capital management.
Payables Turnover
Johnson Controls International plc, payables turnover 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 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Cost of sales | 4,518) | 4,102) | 4,698) | 4,702) | 4,445) | 3,977) | 4,430) | 4,414) | 4,141) | 3,971) | 4,201) | 4,144) | 3,651) | 3,613) | 3,979) | 3,511) | 3,643) | 3,773) | 4,294) | 4,307) | 3,935) | 3,739) | 5,851) | 5,648) | 5,255) | 5,266) | ||||||||
| Accounts payable | 4,019) | 3,976) | 4,268) | 4,296) | 4,348) | 4,138) | 4,241) | 4,125) | 4,101) | 4,083) | 3,746) | 3,719) | 3,417) | 3,210) | 3,120) | 3,057) | 3,119) | 3,336) | 3,582) | 3,671) | 3,482) | 3,273) | 4,644) | 4,410) | 4,250) | 4,020) | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Payables turnover1 | 4.48 | 4.51 | 4.18 | 4.09 | 3.97 | 4.10 | 4.00 | 4.06 | 4.01 | 3.91 | 4.17 | 4.14 | 4.32 | 4.59 | 4.78 | 4.98 | 5.14 | 4.89 | 4.54 | 4.86 | 5.51 | 6.26 | 4.74 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 5.61 | 5.92 | 5.86 | 6.18 | 6.28 | 6.37 | 6.18 | 6.36 | 6.17 | 6.73 | 6.40 | 6.20 | 5.45 | 4.90 | 4.94 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 5.47 | 5.44 | 5.41 | 5.54 | 5.09 | 4.68 | 4.76 | 4.81 | 4.72 | 4.43 | 4.36 | 4.61 | 4.57 | 4.46 | 4.75 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 4.31 | 4.38 | 4.39 | 4.48 | 4.52 | 4.55 | 4.51 | 4.61 | 4.43 | 4.67 | 4.75 | 5.11 | 5.22 | 5.66 | 6.24 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 5.01 | 2.99 | 3.27 | 3.26 | 3.41 | 3.57 | 2.98 | 3.14 | 3.14 | 3.32 | 3.32 | 3.33 | 3.35 | 3.56 | 3.67 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 3.60 | 3.57 | 3.36 | 3.51 | 3.49 | 3.50 | 3.53 | 3.68 | 3.63 | 3.66 | 3.61 | 3.83 | 3.76 | 3.86 | 3.86 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 19.07 | 17.38 | 25.56 | 15.51 | 16.97 | 17.65 | 27.25 | 21.48 | 24.07 | 21.92 | 74.34 | 37.83 | 36.15 | 30.31 | 64.48 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 5.54 | 5.60 | 5.31 | 5.37 | 5.54 | 5.42 | 5.40 | 5.82 | 5.36 | 6.28 | 5.93 | 6.06 | 6.52 | 5.67 | 5.56 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q2 2024 Calculation
Payables turnover
= (Cost of salesQ2 2024
+ Cost of salesQ1 2024
+ Cost of salesQ4 2023
+ Cost of salesQ3 2023)
÷ Accounts payable
= (4,518 + 4,102 + 4,698 + 4,702)
÷ 4,019 = 4.48
2 Click competitor name to see calculations.
- Cost of Sales
- The cost of sales demonstrates a fluctuating pattern across the reported quarters. Initially, values hovered around the mid-5000s millions of US dollars for the periods ending December 2017 through September 2018. A pronounced decline is notable in December 2018, with figures dropping below 4000 million US dollars. This lower range persisted, showing moderate increases and decreases over subsequent quarters. From around March 2020 to March 2024, the cost of sales remained roughly between 3500 and 4700 million, with occasional peaks notably during mid-2023 reaching approximately 4700 million US dollars. The data suggests a general variability influenced possibly by operational or market conditions, with a tendency to rise in the latter part of the observed timeframe.
- Accounts Payable
- Accounts payable exhibit an increasing trend from December 2017 through the end of the series in March 2024. Starting at approximately 4020 million US dollars, accounts payable grew steadily through 2018 and reached over 4300 million by September 2019. Despite some minor reductions in the early 2020 quarters, the overall level rose again to exceed 4300 million by mid-2023. The figures suggest escalating obligations to suppliers, which might reflect increasing purchases or lengthening payment terms over time. The highest recorded values are consistently observed from 2021 onwards, indicating strengthened payables balances in the later periods.
- Payables Turnover Ratio
- The payables turnover ratio data available from June 2018 onwards indicates an initial peak at 6.26 in the March 2019 quarter, suggesting a relatively fast conversion of payables into expenses during that time. However, after this peak, the ratio mostly trends downward, declining to a low near 3.91 in March 2022, indicative of slower payables turnover. Following this low, the ratio fluctuates slightly in the range of approximately 4.0 to 4.51 through early 2024. Overall, this decline might reflect longer payment cycles or changes in procurement dynamics, as accounts payable increased while cost of sales demonstrated variability. The trend suggests a shift towards potentially more extended credit terms or slower settlement of payables in recent periods.
Working Capital Turnover
Johnson Controls International plc, working capital turnover 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 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Current assets | 11,877) | 12,054) | 10,737) | 12,006) | 12,756) | 11,837) | 11,685) | 11,559) | 11,612) | 10,353) | 9,998) | 10,310) | 10,204) | 10,034) | 10,053) | 11,140) | 9,955) | 11,320) | 12,393) | 13,042) | 12,836) | 11,955) | 11,823) | 12,465) | 12,271) | 12,429) | ||||||||
| Less: Current liabilities | 13,599) | 12,409) | 11,084) | 11,128) | 12,403) | 11,563) | 11,239) | 11,883) | 11,654) | 9,987) | 9,098) | 9,285) | 8,740) | 8,486) | 8,248) | 10,304) | 9,509) | 9,692) | 9,070) | 9,242) | 13,441) | 11,653) | 11,250) | 11,301) | 10,992) | 11,246) | ||||||||
| Working capital | (1,722) | (355) | (347) | 878) | 353) | 274) | 446) | (324) | (42) | 366) | 900) | 1,025) | 1,464) | 1,548) | 1,805) | 836) | 446) | 1,628) | 3,323) | 3,800) | (605) | 302) | 573) | 1,164) | 1,279) | 1,183) | ||||||||
| Net sales | 6,699) | 6,094) | 6,906) | 7,133) | 6,686) | 6,068) | 6,725) | 6,614) | 6,098) | 5,862) | 6,392) | 6,341) | 5,594) | 5,341) | 5,954) | 5,343) | 5,444) | 5,576) | 6,274) | 6,451) | 5,779) | 5,464) | 8,370) | 8,120) | 7,475) | 7,435) | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Working capital turnover1 | — | — | — | 30.31 | 73.92 | 93.08 | 56.72 | — | — | 66.09 | 26.30 | 22.66 | 15.19 | 14.26 | 12.36 | 27.08 | 53.24 | 14.79 | 7.21 | 6.86 | — | 97.45 | 54.80 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 4.13 | 5.76 | 5.78 | 5.46 | 4.80 | 4.61 | 3.42 | 3.13 | 2.87 | 2.51 | 2.34 | 2.02 | 2.00 | 1.88 | 1.69 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 6.61 | 5.64 | 5.23 | 4.27 | 5.29 | 4.25 | 4.62 | 4.35 | 3.93 | 3.83 | 3.54 | 2.87 | 2.80 | 2.52 | 2.84 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 5.33 | 5.58 | 5.91 | 6.61 | 6.16 | 7.01 | 8.70 | 10.69 | — | — | 65.65 | 12.41 | 21.65 | 5.34 | 5.42 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 11.15 | 6.93 | 7.24 | 8.11 | 5.70 | 5.87 | 7.93 | 13.29 | 10.55 | 7.14 | 4.94 | 1.57 | 1.57 | 1.27 | 2.26 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 8.63 | 3.37 | 7.39 | 5.98 | 5.16 | 7.79 | 7.03 | 7.91 | 8.84 | 8.07 | 5.86 | 5.94 | 4.52 | 4.27 | 3.64 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 15.88 | 13.24 | 18.85 | 11.04 | 10.56 | 12.81 | 12.93 | 14.03 | 14.28 | 15.14 | 11.52 | 10.48 | 12.30 | 11.93 | 12.01 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | — | 23.64 | 41.62 | 44.25 | 16.99 | 12.76 | 20.15 | 19.15 | 17.77 | 11.41 | 9.75 | 8.11 | 10.24 | 9.77 | 7.52 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q2 2024 Calculation
Working capital turnover
= (Net salesQ2 2024
+ Net salesQ1 2024
+ Net salesQ4 2023
+ Net salesQ3 2023)
÷ Working capital
= (6,699 + 6,094 + 6,906 + 7,133)
÷ -1,722 = —
2 Click competitor name to see calculations.
- Working Capital
- The working capital figures exhibit significant volatility over the analyzed periods. Initially, there is a positive value of 1183 million USD at the end of 2017, with relatively stable values around 1200 million USD in early 2018. This is followed by a sharp decline reaching a negative position of -605 million USD in March 2019, indicating potential liquidity challenges. However, a strong rebound occurs in mid-2019, with working capital peaking substantially at 3800 million USD in June, then gradually declining but remaining positive through 2019 and into early 2020. From late 2020 forward, working capital trends downward again, frequently crossing into negative territory, particularly notable negative lows around -324 million USD in June 2022 and a sharp drop to -1722 million USD by March 2024. Overall, working capital shows a pattern of high fluctuation with periods of both robust liquidity and constrained working capital positions.
- Net Sales
- Net sales display moderate variability with a general pattern of seasonal fluctuation and occasional declines aligned with economic conditions. The series begins with a strong base around 7400-8300 million USD through 2017 and 2018, though a significant dip to approximately 5464 million USD occurs in December 2018. Sales recover steadily through 2019, followed by a drop in early 2020, possibly reflecting external economic headwinds or market disruptions. The pattern after 2020 is characterized by recovery and growth, reaching levels above 7000 million USD in some quarters of 2023. By early 2024, net sales report around 6699 million USD, slightly below the peak but still strong relative to earlier periods. Overall, net sales reflect resilience with periodic downturns but a trend towards recovery and growth in recent quarters.
- Working Capital Turnover Ratio
- Working capital turnover ratios are sporadically reported with notable fluctuations. Ratios spike dramatically in several quarters, such as 97.45 in March 2018 and 66.09 in early 2022, indicating periods of efficient use of working capital relative to net sales. Large ratio values, sometimes exceeding 50, suggest low working capital relative to sales, potentially due to negative or low working capital values. Conversely, lower turnover ratios around 6.86 to 15.19 in mid to late 2018 and early 2020 imply higher relative working capital levels compared to sales. The data gaps and variability limit consistent trend analysis; however, the elevated turnovers during specific quarters align with the observed working capital fluctuations, reflecting challenges in managing working capital relative to sales at certain times.
- Summary Insights
- The financial data highlight significant variability in liquidity as measured by working capital, which exhibits phases of both strength and strain. Net sales fluctuate but generally trend towards recovery after dips, indicating resilient revenue generation. The high volatility in working capital turnover ratios corresponds with swings in working capital levels, suggesting periods where the company either efficiently utilizes limited working capital or faces liquidity pressure. These patterns underscore a need to monitor working capital management closely, especially during quarters with negative working capital and elevated turnover ratios, to sustain operational stability and support ongoing revenue performance.
Average Inventory Processing Period
Johnson Controls International plc, average inventory processing period 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 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||||||
| Inventory turnover | 6.02 | 5.97 | 6.42 | 5.68 | 5.66 | 5.86 | 6.76 | 6.50 | 6.54 | 6.58 | 7.59 | 7.45 | 7.40 | 7.71 | 8.41 | 7.63 | 7.89 | 8.35 | 8.97 | 8.70 | 9.03 | 10.11 | 6.83 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||||||
| Average inventory processing period1 | 61 | 61 | 57 | 64 | 64 | 62 | 54 | 56 | 56 | 55 | 48 | 49 | 49 | 47 | 43 | 48 | 46 | 44 | 41 | 42 | 40 | 36 | 53 | — | — | — | ||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 470 | 443 | 415 | 419 | 416 | 438 | 452 | 468 | 494 | 493 | 486 | 475 | 478 | 496 | 467 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 151 | 146 | 141 | 148 | 151 | 154 | 144 | 155 | 152 | 148 | 144 | 150 | 146 | 149 | 143 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 96 | 95 | 92 | 93 | 93 | 93 | 90 | 92 | 94 | 90 | 82 | 77 | 75 | 71 | 62 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 89 | 141 | 120 | 121 | 116 | 110 | 114 | 118 | 120 | 112 | 107 | 114 | 111 | 105 | 96 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 99 | 100 | 98 | 97 | 96 | 94 | 90 | 89 | 90 | 87 | 80 | 77 | 75 | 75 | 74 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 18 | 20 | 19 | 20 | 22 | 22 | 20 | 20 | 23 | 20 | 19 | 18 | 20 | 21 | 23 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 79 | 77 | 76 | 79 | 78 | 76 | 73 | 73 | 71 | 69 | 65 | 65 | 66 | 67 | 71 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q2 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.02 = 61
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio exhibits a generally declining trend over the analyzed period. Starting with a high value of 10.11 in the first quarter of 2018, it decreased gradually to approximately 6.02 by the first quarter of 2024. The initial quarters indicate relatively higher turnover, suggesting efficient inventory management early on. However, from around 2019 onwards, the ratio consistently moved downward, with some minor fluctuations. The most notable decline is observed between the end of 2021 and the early quarters of 2023, where the turnover ratio drops from roughly 7.59 down to a low near 5.66. A slight rebound is seen in the last two quarters ending March 2024, but the ratio remains significantly lower than the peak observed.
- Average Inventory Processing Period
- This metric shows an inverse pattern compared to inventory turnover, which aligns with financial principles since a longer processing period typically corresponds to lower turnover. The average inventory processing period starts at 36 days in early 2018, rising steadily to a peak around 64 days between early 2023 and late 2023. This increase suggests that inventory is held longer before being sold or used, indicating a slowdown in inventory movement. The period saw gradual increases interrupted only by slight decreases in certain quarters, notably around late 2020 and early 2024 where the processing period momentarily lessened to 57 days before rising again. Overall, there is a clear lengthening in the inventory cycle over time.
- Relation and Insight
- The inverse relationship observed between inventory turnover and average inventory processing period confirms that as inventory remains longer on hand, the efficiency measured by turnover decreases. This may point to potential challenges in inventory management, such as slower sales, overstocking, or changes in product demand. The persistent decline in turnover coupled with a lengthening processing period could have implications on cash flow and working capital utilization. The data suggests an increasing need for strategic review of inventory policies to improve operational efficiency.
Average Receivable Collection Period
Johnson Controls International plc, average receivable collection period 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 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||||||
| Receivables turnover | 4.01 | 4.44 | 4.46 | 4.07 | 4.35 | 4.46 | 4.58 | 4.27 | 4.34 | 4.27 | 4.22 | 4.10 | 4.30 | 4.27 | 4.22 | 4.24 | 4.32 | 4.29 | 4.15 | 4.32 | 4.86 | 5.41 | 4.44 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||||||
| Average receivable collection period1 | 91 | 82 | 82 | 90 | 84 | 82 | 80 | 86 | 84 | 86 | 87 | 89 | 85 | 86 | 87 | 86 | 84 | 85 | 88 | 84 | 75 | 67 | 82 | — | — | — | ||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 16 | 14 | 12 | 15 | 15 | 15 | 14 | 16 | 18 | 14 | 15 | 13 | 15 | 15 | 12 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 55 | 53 | 53 | 53 | 56 | 57 | 57 | 55 | 60 | 67 | 64 | 61 | 66 | 72 | 68 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 73 | 72 | 70 | 72 | 73 | 72 | 72 | 69 | 71 | 68 | 61 | 63 | 64 | 63 | 59 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 60 | 93 | 87 | 79 | 78 | 73 | 89 | 87 | 83 | 82 | 80 | 76 | 77 | 80 | 83 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 76 | 74 | 75 | 79 | 81 | 80 | 77 | 77 | 82 | 76 | 72 | 76 | 75 | 75 | 76 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 15 | 12 | 12 | 13 | 19 | 14 | 14 | 14 | 19 | 14 | 11 | 12 | 14 | 12 | 11 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 52 | 53 | 57 | 55 | 51 | 54 | 50 | 51 | 58 | 51 | 55 | 55 | 52 | 61 | 60 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q2 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 4.01 = 91
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The receivables turnover ratio, recorded from December 31, 2017, onwards, exhibits moderate fluctuations over the periods analyzed. Initially, there is an increase from 4.44 to a peak of 5.41, indicating an improvement in efficiency in collecting receivables. Subsequently, the ratio declines to a range around 4.1 to 4.6 in the following years, suggesting a relative stabilization but also a slight weakening of collection efficiency over time. The ratio remains mostly within the range of 4.0 to 4.6 in recent quarters, showing some variability but no clear trend of significant improvement or deterioration.
- Average Receivable Collection Period (Days)
- The average collection period mirrors the inverse pattern of the receivables turnover ratio, varying between 67 and 91 days. Initially, this period decreases from 82 days to a low of 67 days, indicating faster collections. However, this is followed by an increase to as high as 90–91 days toward the end of the observed periods. The latter portion of the timeline reflects a longer collection period, suggesting a gradual lengthening of the time taken to collect receivables. The values mostly fluctuate in the mid-80 day range, with some spikes indicating potential delays in collections.
- Overall Insights
- Collectively, the data on receivables turnover ratio and average collection period indicate a phase of initial improvement in receivables management, followed by a period of relative stability with slight decline in efficiency. The increase in collection days coupled with the slight decrease in turnover ratio towards the later periods could signal emerging challenges in receivables management or changes in credit policies or customer payment behaviors. Monitoring these trends is advisable to ensure that receivables are efficiently managed to maintain liquidity and operational effectiveness.
Operating Cycle
Johnson Controls International plc, operating cycle calculation (quarterly data)
No. days
| 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 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||||||
| Average inventory processing period | 61 | 61 | 57 | 64 | 64 | 62 | 54 | 56 | 56 | 55 | 48 | 49 | 49 | 47 | 43 | 48 | 46 | 44 | 41 | 42 | 40 | 36 | 53 | — | — | — | ||||||||
| Average receivable collection period | 91 | 82 | 82 | 90 | 84 | 82 | 80 | 86 | 84 | 86 | 87 | 89 | 85 | 86 | 87 | 86 | 84 | 85 | 88 | 84 | 75 | 67 | 82 | — | — | — | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Operating cycle1 | 152 | 143 | 139 | 154 | 148 | 144 | 134 | 142 | 140 | 141 | 135 | 138 | 134 | 133 | 130 | 134 | 130 | 129 | 129 | 126 | 115 | 103 | 135 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 486 | 457 | 427 | 434 | 431 | 453 | 466 | 484 | 512 | 507 | 501 | 488 | 493 | 511 | 479 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 206 | 199 | 194 | 201 | 207 | 211 | 201 | 210 | 212 | 215 | 208 | 211 | 212 | 221 | 211 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 169 | 167 | 162 | 165 | 166 | 165 | 162 | 161 | 165 | 158 | 143 | 140 | 139 | 134 | 121 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 149 | 234 | 207 | 200 | 194 | 183 | 203 | 205 | 203 | 194 | 187 | 190 | 188 | 185 | 179 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 175 | 174 | 173 | 176 | 177 | 174 | 167 | 166 | 172 | 163 | 152 | 153 | 150 | 150 | 150 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 33 | 32 | 31 | 33 | 41 | 36 | 34 | 34 | 42 | 34 | 30 | 30 | 34 | 33 | 34 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 131 | 130 | 133 | 134 | 129 | 130 | 123 | 124 | 129 | 120 | 120 | 120 | 118 | 128 | 131 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q2 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 61 + 91 = 152
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period shows initial data beginning in December 2018, starting at 53 days. It then decreases to 36 days by March 2019, indicating an improvement in inventory turnover efficiency. However, following this dip, the period gradually rises, fluctuating around the mid-to-high 40s through 2020 and 2021. Starting in early 2022, there is a noticeable upward trend with values peaking at 64 days mid-2023. The last recorded values indicate a slight decline to around 57-61 days by early 2024. Overall, the inventory processing period reveals increasing difficulty in moving inventory efficiently over the most recent quarters compared to earlier periods.
- Average Receivable Collection Period
- Receivable collection periods start from December 2018 with 82 days, followed by a downward adjustment to 67 days in March 2019, suggesting faster collections at that time. The period then trends upward, reaching as high as 90 days in late 2023. Throughout the timeframe, the collection period fluctuates mostly between the low 80s and high 80s, with occasional small peaks and troughs. The data indicates relative stability in receivables collections but shows that the company consistently requires nearly three months to collect payments, with a modest increase in collection days toward the end of the period observed.
- Operating Cycle
- The operating cycle, combining inventory and receivable turnover times, starts at 135 days in December 2018 and dips to a low of 103 days in March 2019. Since then, it gradually increases, reaching a high of 154 days in the third quarter of 2023. The latter periods show fluctuations around the 140 to 150-day range with a slight contraction to 139 days in late 2023 before rising again to 152 days by early 2024. The overall trend reflects an elongated operating cycle over time, implying that the company's cash conversion process has become longer, which could impact liquidity and operational efficiency.
Average Payables Payment Period
Johnson Controls International plc, average payables payment period 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 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||||||
| Payables turnover | 4.48 | 4.51 | 4.18 | 4.09 | 3.97 | 4.10 | 4.00 | 4.06 | 4.01 | 3.91 | 4.17 | 4.14 | 4.32 | 4.59 | 4.78 | 4.98 | 5.14 | 4.89 | 4.54 | 4.86 | 5.51 | 6.26 | 4.74 | — | — | — | ||||||||
| Short-term Activity Ratio (no. days) | ||||||||||||||||||||||||||||||||||
| Average payables payment period1 | 81 | 81 | 87 | 89 | 92 | 89 | 91 | 90 | 91 | 93 | 88 | 88 | 85 | 79 | 76 | 73 | 71 | 75 | 80 | 75 | 66 | 58 | 77 | — | — | — | ||||||||
| Benchmarks (no. days) | ||||||||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 65 | 62 | 62 | 59 | 58 | 57 | 59 | 57 | 59 | 54 | 57 | 59 | 67 | 74 | 74 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 67 | 67 | 67 | 66 | 72 | 78 | 77 | 76 | 77 | 82 | 84 | 79 | 80 | 82 | 77 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 85 | 83 | 83 | 82 | 81 | 80 | 81 | 79 | 82 | 78 | 77 | 71 | 70 | 65 | 58 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 73 | 122 | 112 | 112 | 107 | 102 | 123 | 116 | 116 | 110 | 110 | 109 | 109 | 103 | 100 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 101 | 102 | 109 | 104 | 105 | 104 | 103 | 99 | 101 | 100 | 101 | 95 | 97 | 95 | 95 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 19 | 21 | 14 | 24 | 22 | 21 | 13 | 17 | 15 | 17 | 5 | 10 | 10 | 12 | 6 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 66 | 65 | 69 | 68 | 66 | 67 | 68 | 63 | 68 | 58 | 62 | 60 | 56 | 64 | 66 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q2 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 4.48 = 81
2 Click competitor name to see calculations.
The payables turnover ratio exhibits fluctuations over the observed periods, starting from a value of 4.74 and reaching a peak of 6.26 before generally declining to around 4.48 by the end of the period. This pattern suggests variability in the company's efficiency in paying its suppliers, with a notable improvement early on followed by a gradual decrease in turnover speed.
Correspondingly, the average payables payment period, expressed in days, shows an inverse relationship to the payables turnover. Initially recorded at 77 days, this period decreased to 58 days, indicating faster payment practices. However, following this decline, there is a steady increase in the payment period, peaking at 93 days before slightly reducing to 81 days at the end of the timeline. This trend indicates that the company took longer to settle payables in the latter periods compared to earlier quarters.
- Trend Summary
- The data presents a pattern where an initial improvement in payable turnover efficiency—seen through a decrease in payment days and increase in turnover ratio—is followed by a gradual decline, with the average payment period extending and the turnover ratio decreasing.
- Implications
- This shift may reflect changes in the company's cash management strategy or external factors impacting its ability or decision to settle payables promptly. The extended payment period in later quarters could imply negotiations for longer credit terms, liquidity management actions, or potential delays in payment cycles.
- Overall Insight
- Monitoring these metrics over time indicates variability in the company's accounts payable management, which could affect supplier relationships and working capital efficiency. Management may need to assess the causes behind the widening payment periods and implement strategies to optimize payable turnover while maintaining supplier trust.
Cash Conversion Cycle
Johnson Controls International plc, cash conversion cycle calculation (quarterly data)
No. days
| 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 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||||||||||||||||
| Average inventory processing period | 61 | 61 | 57 | 64 | 64 | 62 | 54 | 56 | 56 | 55 | 48 | 49 | 49 | 47 | 43 | 48 | 46 | 44 | 41 | 42 | 40 | 36 | 53 | — | — | — | ||||||||
| Average receivable collection period | 91 | 82 | 82 | 90 | 84 | 82 | 80 | 86 | 84 | 86 | 87 | 89 | 85 | 86 | 87 | 86 | 84 | 85 | 88 | 84 | 75 | 67 | 82 | — | — | — | ||||||||
| Average payables payment period | 81 | 81 | 87 | 89 | 92 | 89 | 91 | 90 | 91 | 93 | 88 | 88 | 85 | 79 | 76 | 73 | 71 | 75 | 80 | 75 | 66 | 58 | 77 | — | — | — | ||||||||
| Short-term Activity Ratio | ||||||||||||||||||||||||||||||||||
| Cash conversion cycle1 | 71 | 62 | 52 | 65 | 56 | 55 | 43 | 52 | 49 | 48 | 47 | 50 | 49 | 54 | 54 | 61 | 59 | 54 | 49 | 51 | 49 | 45 | 58 | — | — | — | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | ||||||||||||||||||||||||||||||||||
| Boeing Co. | 421 | 395 | 365 | 375 | 373 | 396 | 407 | 427 | 453 | 453 | 444 | 429 | 426 | 437 | 405 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Caterpillar Inc. | 139 | 132 | 127 | 135 | 135 | 133 | 124 | 134 | 135 | 133 | 124 | 132 | 132 | 139 | 134 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Eaton Corp. plc | 84 | 84 | 79 | 83 | 85 | 85 | 81 | 82 | 83 | 80 | 66 | 69 | 69 | 69 | 63 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| GE Aerospace | 76 | 112 | 95 | 88 | 87 | 81 | 80 | 89 | 87 | 84 | 77 | 81 | 79 | 82 | 79 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Honeywell International Inc. | 74 | 72 | 64 | 72 | 72 | 70 | 64 | 67 | 71 | 63 | 51 | 58 | 53 | 55 | 55 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lockheed Martin Corp. | 14 | 11 | 17 | 9 | 19 | 15 | 21 | 17 | 27 | 17 | 25 | 20 | 24 | 21 | 28 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| RTX Corp. | 65 | 65 | 64 | 66 | 63 | 63 | 55 | 61 | 61 | 62 | 58 | 60 | 62 | 64 | 65 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q2 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 61 + 91 – 81 = 71
2 Click competitor name to see calculations.
- Inventory Processing Period
- The average inventory processing period exhibited fluctuations over the observed timeline. Initially, it started at 53 days in late 2018, followed by a decrease to a low of 36 days in early 2019. Subsequently, it increased steadily, peaking at 56 days around early to mid-2022. Towards the most recent periods in early 2024, the inventory days slightly declined but remained elevated near 61 days, indicating a lengthening period for processing inventory compared to earlier years.
- Receivable Collection Period
- The average receivable collection period began near 82 days in late 2018 and showed some variability across quarters. It decreased to around 67 days in early 2019 but generally trended upward through 2019 and 2020 with values mostly in the mid-80s range. Post-2020, the period stabilized roughly between 80 to 90 days, with minor quarterly variations. The most recent quarters in early 2024 demonstrated a slight increase again, reaching 91 days, suggesting a moderate lengthening in the time taken to collect receivables.
- Payables Payment Period
- The average payables payment period started at 77 days in late 2018, dropped to a low of 58 days in early 2019, then showed a steady increase through subsequent years. From mid-2019 onward, payment periods continued to extend, reaching close to 93 days in late 2021. This elevated payment period was largely sustained with slight fluctuation around 80-90 days. In early 2024, the period settled near 81 days, reflecting a somewhat high and stable duration in terms of payables payment.
- Cash Conversion Cycle
- The cash conversion cycle displayed a noticeable dip from 58 days in late 2018 to 45 days in early 2019, reflecting improved efficiency. However, it then rose and fluctuated, peaking near 65 days in late 2023. The cycle remained around the low 50s to mid-60s for much of 2022 and 2023, before increasing again by early 2024 to 71 days. This indicates an overall lengthening in the working capital cycle, suggesting that the company’s cash is tied up for longer durations in its operational cycle in recent periods.