Johnson & Johnson (JNJ)

Days of sales outstanding (DSO)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Receivables turnover		5.96	5.41	5.46	5.95	5.96	5.89	5.12	—	5.40	—	—	—	6.11	—	—	—	—	—	—	—
DSO	days	61.25	67.44	66.85	61.32	61.25	61.96	71.24	—	67.58	—	—	—	59.75	—	—	—	—	—	—	—

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.96
= 61.25

Based on the data provided, Johnson & Johnson's days of sales outstanding (DSO) has shown some fluctuations over the reported periods. DSO is a measure of how long, on average, it takes for the company to collect payments after making a sale.

In December 2021, the DSO stood at 59.75 days, indicating that it took the company almost 60 days to collect receivables. This figure increased to 67.58 days by December 2022. The increase in DSO suggests that Johnson & Johnson may have experienced challenges in collecting payments from its customers within a reasonable timeframe.

The DSO further increased to 71.24 days by June 2023, before slightly decreasing to 61.25 days by December 2023. This reduction indicates that the company made some improvements in its collection process.

By June 2024, the DSO rose again to 66.85 days, showing a longer collection period compared to the previous year's December figure of 61.25 days. The upward trend in DSO may imply that Johnson & Johnson is encountering difficulties in getting paid promptly for its products and services.

Overall, the analysis suggests that Johnson & Johnson's DSO has exhibited fluctuations over the reported periods, indicating potential challenges in managing accounts receivable effectively. The company may need to address these fluctuations to ensure a healthy cash flow and efficient working capital management.