Johnson & Johnson (JNJ)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 55,479,000 | 54,349,000 | 50,533,000 | 60,455,000 | 55,691,000 |
| Inventory | US$ in thousands | 12,444,000 | 11,181,000 | 10,268,000 | 10,387,000 | 9,344,000 |
| Inventory turnover | 4.46 | 4.86 | 4.92 | 5.82 | 5.96 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $55,479,000K ÷ $12,444,000K
= 4.46
The inventory turnover ratio of Johnson & Johnson shows a generally declining trend over the years, decreasing from 5.96 in December 2020 to 4.46 in December 2024. This may suggest that the company is taking longer to sell its inventory or facing challenges in efficiently managing its inventory levels. A decreasing inventory turnover ratio could indicate overstocking or slowing sales, potentially leading to higher storage costs and obsolescence risk. Johnson & Johnson may need to evaluate its inventory management practices to improve efficiency and optimize working capital utilization.
Peer comparison
Dec 31, 2024