Johnson & Johnson (JNJ)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		5.38	5.64	5.11	5.47	5.86
Number of days of payables	days	67.84	64.69	71.43	66.75	62.30

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.38
= 67.84

Johnson & Johnson's number of days of payables has shown an increasing trend over the past five years. As of December 31, 2020, the company took approximately 62.30 days to settle its payables, which increased to 66.75 days by December 31, 2021. The trend continued with further increases to 71.43 days by December 31, 2022. However, there was a slight decrease in the number of days of payables to 64.69 days by December 31, 2023, followed by a modest increase to 67.84 days by December 31, 2024.

This analysis indicates that Johnson & Johnson's payment terms to suppliers have been extending gradually over the years, which could suggest potential liquidity management strategies or changes in the company's supplier relationships. Monitoring and understanding the trends in days of payables can provide insights into the company's working capital management and financial health.