Johnson Controls Return On Asset vs. Total Debt
| 0Y7S Stock | 83.28 0.48 0.57% |
For Johnson Controls profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Johnson Controls to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Johnson Controls International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Johnson Controls's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Johnson Controls International over time as well as its relative position and ranking within its peers.
Johnson |
Johnson Controls Int Total Debt vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Johnson Controls's current stock value. Our valuation model uses many indicators to compare Johnson Controls value to that of its competitors to determine the firm's financial worth. Johnson Controls International is rated third in return on asset category among its peers. It is the top company in total debt category among its peers making up about 266,657,303,371 of Total Debt per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Johnson Controls' earnings, one of the primary drivers of an investment's value.Johnson Total Debt vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Johnson Controls |
| = | 0.0356 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Johnson Controls |
| = | 9.49 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Johnson Total Debt vs Competition
Johnson Controls International is the top company in total debt category among its peers. Total debt of Industrials industry is presently estimated at about 23.45 Billion. Johnson Controls totals roughly 9.49 Billion in total debt claiming about 40% of equities under Industrials industry.
Johnson Controls Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Johnson Controls, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Johnson Controls will eventually generate negative long term returns. The profitability progress is the general direction of Johnson Controls' change in net profit over the period of time. It can combine multiple indicators of Johnson Controls, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -859.5 M | -816.5 M | |
| Operating Income | 2.4 B | 1.5 B | |
| Income Before Tax | 1.5 B | 1.2 B | |
| Total Other Income Expense Net | -894 M | -849.3 M | |
| Net Income | 1.8 B | 1.4 B | |
| Income Tax Expense | 111 M | 105.5 M | |
| Interest Income | 162.9 M | 229.8 M | |
| Net Income Applicable To Common Shares | 1.4 B | 1.8 B | |
| Change To Netincome | 417.4 M | 438.3 M |
Johnson Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Johnson Controls. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Johnson Controls position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Johnson Controls' important profitability drivers and their relationship over time.
Use Johnson Controls in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Johnson Controls position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Johnson Controls will appreciate offsetting losses from the drop in the long position's value.Johnson Controls Pair Trading
Johnson Controls International Pair Trading Analysis
The ability to find closely correlated positions to Johnson Controls could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Johnson Controls when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Johnson Controls - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Johnson Controls International to buy it.
The correlation of Johnson Controls is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Johnson Controls moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Johnson Controls Int moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Johnson Controls can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Johnson Controls position
In addition to having Johnson Controls in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Currency Funds
Funds or Etfs investing in a single currency or combination of currencies from different countries in order to replicate respective foreign exchange markets. The Currency Funds theme has 43 constituents at this time.
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Additional Tools for Johnson Stock Analysis
When running Johnson Controls' price analysis, check to measure Johnson Controls' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Johnson Controls is operating at the current time. Most of Johnson Controls' value examination focuses on studying past and present price action to predict the probability of Johnson Controls' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Johnson Controls' price. Additionally, you may evaluate how the addition of Johnson Controls to your portfolios can decrease your overall portfolio volatility.