Johnson & Johnson (JNJ)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		5.97	5.65	4.92	6.11	6.05
DSO	days	61.14	64.61	74.26	59.75	60.30

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.97
= 61.14

Based on the provided data, Johnson & Johnson's days of sales outstanding (DSO) has shown some fluctuations over the years.

As of December 31, 2020, the DSO stood at 60.30 days, indicating that on average, it took the company approximately 60 days to collect its accounts receivable.

Subsequently, by December 31, 2021, the DSO decreased slightly to 59.75 days, suggesting a more efficient collection of receivables compared to the previous year.

However, by December 31, 2022, the DSO spiked to 74.26 days, which may indicate potential issues with the company's accounts receivable management or changes in its sales terms.

The DSO then decreased to 64.61 days by December 31, 2023, showing some improvement in receivables collection compared to the previous year.

Finally, as of December 31, 2024, the DSO decreased further to 61.14 days, indicating a positive trend in the company's ability to collect payments from customers within a shorter timeframe.

Overall, these fluctuations in Johnson & Johnson's days of sales outstanding reflect the company's effectiveness in managing its accounts receivable and collecting payments from customers in a timely manner. It is important for the company to continue monitoring this metric to ensure optimal working capital management and financial health.