Johnson & Johnson (JNJ)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 55,285,000 | 54,675,000 | 54,257,000 | 56,842,000 | 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 |
| Payables | US$ in thousands | 10,311,000 | 8,954,000 | 8,848,000 | 8,174,000 | 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 |
| Payables turnover | 5.36 | 6.11 | 6.13 | 6.95 | 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 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $55,285,000K ÷ $10,311,000K
= 5.36
The payables turnover ratio for Johnson & Johnson has fluctuated over the past few years, ranging from a low of 4.01 in June 2023 to a high of 6.95 in March 2024. This ratio indicates how efficiently the company is managing its accounts payable by measuring how many times during a period the company pays off its suppliers.
A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, which could indicate strong cash management practices and good relationships with suppliers. Conversely, a lower ratio may suggest that the company takes longer to pay its suppliers, which could strain supplier relationships or indicate potential liquidity issues.
Overall, Johnson & Johnson's payables turnover ratio has shown some variability, but generally, it has been within a reasonable range, reflecting a consistent approach to managing its accounts payable. It is important for stakeholders to monitor this ratio over time to ensure that the company maintains healthy supplier relationships and efficient cash management practices.
Peer comparison
Dec 31, 2024