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Johnson Controls International (FRA:TYIA) Financial Strength : 6 (As of Dec. 2024)


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What is Johnson Controls International Financial Strength?

Johnson Controls International has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Johnson Controls International's Interest Coverage for the quarter that ended in Dec. 2024 was 7.87. Johnson Controls International's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.46. As of today, Johnson Controls International's Altman Z-Score is 2.02.


Competitive Comparison of Johnson Controls International's Financial Strength

For the Building Products & Equipment subindustry, Johnson Controls International's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Johnson Controls International's Financial Strength Distribution in the Construction Industry

For the Construction industry and Industrials sector, Johnson Controls International's Financial Strength distribution charts can be found below:

* The bar in red indicates where Johnson Controls International's Financial Strength falls into.



Johnson Controls International Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Johnson Controls International's Interest Expense for the months ended in Dec. 2024 was €-64 Mil. Its Operating Income for the months ended in Dec. 2024 was €503 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was €8,202 Mil.

Johnson Controls International's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*503.285/-63.985
=7.87

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Johnson Controls International's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1340.82 + 8202.495) / 20727.32
=0.46

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Johnson Controls International has a Z-score of 2.02, indicating it is in Grey Zones. This implies that Johnson Controls International is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.02 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Johnson Controls International  (FRA:TYIA) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Johnson Controls International has the Financial Strength Rank of 6.


Johnson Controls International Financial Strength Related Terms

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Johnson Controls International Business Description

Traded in Other Exchanges
Address
One Albert Quay, Cork, IRL, T12 X8N6
Johnson Controls manufactures, installs, and services commercial HVAC systems, building management platforms and controls, fire and security solutions, and industrial refrigeration units. Commercial HVAC and fire and security each account for approximately 45% of sales, while industrial refrigeration and other solutions account for the remaining 10% of revenue. In fiscal 2024, Johnson Controls generated nearly $23 billion in pro forma revenue.

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