Johnson & Johnson (JNJ)

Payables 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
Payables	US$ in thousands	10,311,000	9,632,000	9,889,000	11,055,000	9,505,000
Payables turnover		5.38	5.64	5.11	5.47	5.86

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $55,479,000K ÷ $10,311,000K
= 5.38

The payables turnover ratio for Johnson & Johnson has been relatively stable over the past five years. The ratio decreased from 5.86 in December 2020 to 5.47 in December 2021, indicating that the company took slightly longer to pay off its suppliers during that period. In December 2022, the ratio further decreased to 5.11, suggesting a continued trend of slower payments to suppliers.

However, there was a slight improvement in payables turnover in December 2023, reaching 5.64, indicating that the company was able to better manage its payables in that year. Subsequently, in December 2024, the ratio dropped again to 5.38, reflecting a moderate decrease in the speed at which Johnson & Johnson paid its suppliers.

Overall, the payables turnover ratio for Johnson & Johnson has shown some fluctuations over the five-year period, but it has generally remained around the 5x mark, indicating that the company has a solid relationship with its suppliers in terms of payment terms and efficiency in managing its payables.