Johnson Controls International — Earnings Quality Grade F
JCI · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 97 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 2.8%, CFFO -33.3%. Cash follows revenue
Expense Quality
Inventory 2.6% vs COGS 0.9%. Normal
CapEx growth -12.1% vs revenue 2.8%. Normal
SG&A/Gross Profit = 67.1%. Normal
Gross margin 36.4%, change +1.2pp. Stable
Cash Flow Quality
CFFO/NI = 0.43. Only 43% of profit backed by cash
FCF $1.0B, FCF/NI = 0.29
Accruals ratio = 5.0%. Low accruals
Cash $0.4B covers only 4% of debt $9.9B
Balance Sheet Health
Goodwill+Intangibles $20.2B = 157% of equity. Over 50%
Debt/EBITDA = 3.2x. Healthy
Other assets -35.4% vs revenue 2.8%. Normal
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -3% YoY. Normal
Manipulation Score
M-Score = -2.28 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09