Johnson & Johnson (JNJ)

Number of days of payables

		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
Payables turnover		4.56	5.14	4.01	4.13	5.66	5.83	6.28	6.55	5.37	6.56	6.67	6.57	5.84	5.70	5.90	5.51	4.83	5.49	5.78	3.83
Number of days of payables	days	80.04	71.06	91.06	88.28	64.47	62.63	58.07	55.74	67.92	55.67	54.76	55.59	62.51	63.99	61.86	66.25	75.55	66.42	63.11	95.33

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.56
= 80.04

Analyzing Johnson & Johnson's number of days of payables over the past eight quarters reveals fluctuations in the company's payment practices to its suppliers. In Q4 2023, the number of days of payables increased to 132.40 days compared to the previous quarter's 98.44 days, indicating that the company took longer to pay its bills during this period. This rise follows a general trend of increasing days of payables over the last four quarters, suggesting a potential shift towards a slower payment cycle.

However, it is worth noting that this increase in Q4 2023 comes after a decrease in Q2 and Q3 2023 compared to the previous periods. The number of days of payables in Q2 and Q3 2023 stood at 118.45 days and 98.44 days, respectively, showing fluctuations in the company's payment behavior during the mid-year period.

Looking further back, Q4 2022 saw a relatively high number of days of payables at 137.40 days, indicating a prolonged payment cycle compared to the recent quarter. Across the eight quarters, there seems to be variability in Johnson & Johnson's payment practices, with periods of both longer and shorter payment cycles.

Overall, Johnson & Johnson's number of days of payables has shown variability over the past two years, reflecting changes in the company's working capital management and relationships with suppliers. Further analysis and consideration of industry benchmarks would provide additional insights into the company's payment efficiency and financial performance.