Johnson & Johnson (JNJ)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 41,277,000 | 41,163,000 | 39,973,000 | 26,506,000 |
| Payables | US$ in thousands | 9,632,000 | 8,355,000 | 10,443,000 | 9,909,000 | 9,889,000 | 10,153,000 | 9,765,000 | 9,309,000 | 11,055,000 | 8,961,000 | 8,704,000 | 8,503,000 | 9,505,000 | 7,044,000 | 6,765,000 | 7,411,000 | 8,544,000 | 7,491,000 | 6,912,000 | 6,923,000 |
| 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 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $43,925,000K ÷ $9,632,000K
= 4.56
The payables turnover ratio for Johnson & Johnson has shown some fluctuation over the past eight quarters. In Q4 2023, the payables turnover ratio stands at 2.76, which indicates that the company took approximately 2.76 times to pay off its accounts payable during that quarter.
Compared to the previous quarter, Q3 2023, where the ratio was 3.71, there has been a notable decrease in the speed at which Johnson & Johnson is settling its payables. It is important to note that a lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could potentially strain relationships or indicate cash flow issues.
Looking at the trend over the past year, the payables turnover ratio has generally been in the range of 2.66 to 3.71, with some fluctuations seen between quarters. It is crucial for Johnson & Johnson to effectively manage its payables turnover to maintain positive relationships with suppliers while also ensuring efficient cash flow management. Further analysis and comparison with industry benchmarks would provide additional insights into the company's payables management efficiency.
Peer comparison
Dec 31, 2023