Johnson & Johnson (JNJ)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 5.65 | 4.92 | 6.11 | 6.05 | 5.63 | |
| DSO | days | 64.61 | 74.26 | 59.75 | 60.30 | 64.87 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.65
= 64.61
To analyze Johnson & Johnson's Days of Sales Outstanding (DSO) over the past five years, we observe a fluctuating trend. In 2019, the DSO stood at 64.41 days, indicating it took the company approximately 64 days to convert its accounts receivable into cash. This figure decreased to 60.00 days in 2021, suggesting an improvement in the company's collection efficiency.
However, there was a slight increase in DSO to 59.49 days in 2022, followed by a further increase to 62.13 days in 2023 and 63.75 days in 2024. These increases suggest a potential slowdown in the collection of accounts receivable in recent years, which may indicate challenges in managing credit terms with customers or delayed payments.
Overall, Johnson & Johnson's DSO trend indicates some variability in its collections efficiency, and further monitoring may be necessary to ensure timely conversion of accounts receivable to cash.
Peer comparison
Dec 31, 2023