Johnson & Johnson (JNJ)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 54,349,000 | 50,533,000 | 60,455,000 | 55,691,000 | 55,596,000 |
| Payables | US$ in thousands | 9,632,000 | 9,889,000 | 11,055,000 | 9,505,000 | 8,544,000 |
| Payables turnover | 5.64 | 5.11 | 5.47 | 5.86 | 6.51 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $54,349,000K ÷ $9,632,000K
= 5.64
The payables turnover ratio for Johnson & Johnson has been relatively consistent over the past five years, ranging from 2.66 to 3.23. This ratio measures how efficiently the company is managing its accounts payable by indicating how many times a year the company pays off its suppliers.
The declining trend from 2019 to 2023 suggests a slight increase in the number of days it takes for the company to pay its suppliers, indicating a potential slowdown in the payment process. However, the ratio is still within a healthy range, showing that Johnson & Johnson is effectively managing its payables.
Overall, the relatively stable payables turnover ratio indicates that Johnson & Johnson has been maintaining a balanced approach in managing its accounts payable, ensuring timely payments to suppliers while preserving cash flow and financial health.
Peer comparison
Dec 31, 2023