Johnson & Johnson (JNJ)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	55,285,000	54,675,000	54,257,000	56,842,000	43,925,000	42,913,000	41,861,000	40,969,000	55,985,000	59,175,000	61,373,000	60,959,000	59,405,000	58,754,000	58,015,000	55,832,000	55,504,000	40,179,000	39,918,000	40,828,000
Inventory	US$ in thousands	12,444,000	12,603,000	12,169,000	11,383,000	11,181,000	11,198,000	12,888,000	12,809,000	10,268,000	11,675,000	11,437,000	10,990,000	10,387,000	10,387,000	10,100,000	9,952,000	9,344,000	9,599,000	9,424,000	8,868,000
Inventory turnover		4.44	4.34	4.46	4.99	3.93	3.83	3.25	3.20	5.45	5.07	5.37	5.55	5.72	5.66	5.74	5.61	5.94	4.19	4.24	4.60

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $55,285,000K ÷ $12,444,000K
= 4.44

Inventory turnover is an important financial ratio that measures how efficiently a company manages its inventory. For Johnson & Johnson, the inventory turnover has shown fluctuations over the years based on the provided data.

From March 31, 2020, to December 31, 2024, Johnson & Johnson's inventory turnover ranged from a low of 3.20 to a high of 5.94. Generally, a higher inventory turnover ratio indicates that the company is selling its inventory quickly and efficiently.

In the earlier years, the inventory turnover ratio fluctuated within a range of 4.19 to 5.94, showing relatively efficient management of inventory. However, in recent years, there has been a slight decline in the inventory turnover ratio, with figures ranging between 3.20 to 5.45.

It is important to note that a declining inventory turnover ratio may indicate potential issues such as overstocking, slowing sales, or obsolete inventory. Further analysis of the company's operations and market conditions would be necessary to determine the factors influencing the changes in inventory turnover.