Johnson & Johnson (JNJ)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	88,607,000	84,021,000	79,428,000	93,356,000	82,174,000
Property, plant and equipment	US$ in thousands	20,518,000	19,898,000	17,982,000	18,962,000	18,766,000
Fixed asset turnover		4.32	4.22	4.42	4.92	4.38

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $88,607,000K ÷ $20,518,000K
= 4.32

The fixed asset turnover ratio for Johnson & Johnson has shown a consistent trend over the past five years. In 2020, the fixed asset turnover ratio was 4.38, indicating that the company generated $4.38 in sales for every dollar invested in fixed assets. The ratio improved to 4.92 in 2021, suggesting increased efficiency in utilizing fixed assets to generate revenue. However, in 2022, the ratio decreased slightly to 4.42, followed by a further decline to 4.22 in 2023. In 2024, there was a slight improvement with a ratio of 4.32, although it remained below the peak in 2021.

Overall, Johnson & Johnson has maintained a relatively stable fixed asset turnover ratio, indicating the company's ability to efficiently utilize its fixed assets to generate sales. However, the fluctuations in the ratio over the years might suggest changes in the company's operational efficiency or investment in fixed assets.