Johnson & Johnson (JNJ)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 88,452,000 | 87,541,000 | 86,229,000 | 88,966,000 | 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 |
| Property, plant and equipment | US$ in thousands | 20,518,000 | 20,479,000 | 19,748,000 | 19,632,000 | 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 |
| Fixed asset turnover | 4.31 | 4.27 | 4.37 | 4.53 | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $88,452,000K ÷ $20,518,000K
= 4.31
The fixed asset turnover ratio for Johnson & Johnson has shown fluctuations over the given period, ranging from a low of 4.18 to a high of 5.19. Generally, a higher fixed asset turnover indicates that the company is generating more revenue relative to its investment in fixed assets, which is favorable.
From March 31, 2020, to June 30, 2022, the ratio showed a consistent increasing trend, peaking at 5.19. This could suggest that Johnson & Johnson was able to generate more revenue per dollar invested in fixed assets during this period.
However, from September 30, 2022, to December 31, 2024, the ratio declined, indicating a potential decrease in the efficiency of utilizing fixed assets to generate revenue.
Overall, further analysis of the company's operational efficiency, capital investments, and revenue generation strategies is recommended to better assess the implications of these fluctuations in the fixed asset turnover ratio for Johnson & Johnson.
Peer comparison
Dec 31, 2024