Johnson & Johnson (JNJ)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	88,632,000	87,176,000	85,962,000	84,760,000	87,282,000	91,851,000	95,224,000	94,514,000	93,356,000	91,027,000	88,747,000	83,766,000	82,174,000	80,742,000	80,385,000	82,573,000	81,826,000	81,473,000	80,897,000	81,248,000
Property, plant and equipment	US$ in thousands	19,898,000	18,821,000	20,576,000	20,174,000	17,982,000	18,152,000	18,354,000	18,701,000	18,962,000	18,478,000	18,632,000	18,367,000	18,766,000	17,855,000	17,598,000	17,401,000	17,658,000	17,048,000	17,248,000	17,000,000
Fixed asset turnover		4.45	4.63	4.18	4.20	4.85	5.06	5.19	5.05	4.92	4.93	4.76	4.56	4.38	4.52	4.57	4.75	4.63	4.78	4.69	4.78

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $88,632,000K ÷ $19,898,000K
= 4.45

Johnson & Johnson's fixed asset turnover ratio has fluctuated over the past eight quarters, ranging from a low of 4.28 to a high of 5.29. Generally, the company has effectively utilized its fixed assets to generate sales revenue, as higher ratios indicate better efficiency in generating sales from fixed assets. The highest ratio of 5.29 was observed in Q3 2022, indicating that Johnson & Johnson generated $5.29 in sales for every $1 of fixed assets during that quarter.

However, there was a slight decrease in the fixed asset turnover ratio in the most recent quarter, Q4 2023, compared to the preceding quarter, Q3 2023. While this may suggest a slight decline in efficiency in utilizing fixed assets to generate sales, the ratio of 4.28 still indicates a relatively effective utilization of fixed assets. It is important for the company to monitor this ratio closely to ensure optimal utilization of fixed assets in driving sales and profitability.