Johnson & Johnson (JNJ)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	4.44	4.34	4.46	4.99	3.93	3.83	3.25	3.20	5.45	5.07	5.37	5.55	5.72	5.66	5.74	5.61	5.94	4.19	4.24	4.60
Receivables turnover	5.96	5.41	5.46	5.95	5.96	5.89	5.12	—	5.40	—	—	—	6.11	—	—	—	—	—	—	—
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
Working capital turnover	15.87	58.75	22.20	10.75	12.29	9.34	13.44	21.11	—	4.66	5.00	5.55	5.93	5.94	5.90	7.22	9.40	4.31	8.81	7.84

The activity ratios of Johnson & Johnson provide insights into the efficiency of the company's operations and management of its resources.

1. Inventory Turnover:
- Johnson & Johnson's inventory turnover has generally been stable over the periods analyzed, ranging from 3.20 to 5.94.
- The increase in inventory turnover from 2020 to 2021 indicates that the company managed its inventory more efficiently.
- A decrease in inventory turnover from 2023 to 2024 may suggest a buildup of inventory relative to sales.

2. Receivables Turnover:
- Johnson & Johnson's receivables turnover was not available for most periods, but it started to be reported from December 31, 2021, with a value of 6.11.
- The consistent values of receivables turnover from 2022 to 2024 suggest the company is effectively collecting its receivables.

3. Payables Turnover:
- The payables turnover for Johnson & Johnson has varied over the periods, with values ranging from 4.01 to 6.95.
- An increasing trend in payables turnover from 2020 to 2024 indicates that the company is taking longer to pay its suppliers.
- A higher payables turnover may indicate strong relationships with suppliers or favorable credit terms.

4. Working Capital Turnover:
- Johnson & Johnson's working capital turnover shows significant fluctuations over the years, with values ranging from 4.31 to 58.75.
- The sharp increase in working capital turnover in 2024 may indicate more efficient utilization of working capital to generate sales.
- A high working capital turnover ratio signifies that the company is efficiently using its working capital to support its operations.

Overall, analyzing these activity ratios helps assess Johnson & Johnson's efficiency in managing its inventory, receivables, payables, and working capital to support its operations and generate revenue.

Average number of days

		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
Days of inventory on hand (DOH)	days	82.16	84.14	81.86	73.09	92.91	95.25	112.37	114.12	66.94	72.01	68.02	65.80	63.82	64.53	63.54	65.06	61.45	87.20	86.17	79.28
Days of sales outstanding (DSO)	days	61.25	67.44	66.85	61.32	61.25	61.96	71.24	—	67.58	—	—	—	59.75	—	—	—	—	—	—	—
Number of days of payables	days	68.07	59.78	59.52	52.49	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

Johnson & Johnson's Days of Inventory on Hand (DOH) has been fluctuating over the periods provided, ranging from a low of 61.45 days to a high of 114.12 days. The company's inventory turnover seems to have peaked in March 2023 before gradually declining.

For Days of Sales Outstanding (DSO), data was unavailable for the early periods, with figures starting in December 2021 at 59.75 days. Thereafter, DSO has shown fluctuations but generally improved, with the latest figure standing at 61.25 days in December 2024.

The Number of Days of Payables, representing how long it takes the company to pay its suppliers, also varied during the periods analyzed. The trend in payables days suggests some level of inconsistency in payment timings, ranging from a low of 52.49 days in March 2024 to a high of 91.06 days in June 2023.

In summary, Johnson & Johnson's activity ratios indicate fluctuations in inventory management, improvement in accounts receivable turnover, and varying payment terms with suppliers over the reported periods.

Long-term

	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
Fixed asset turnover	4.31	4.27	4.37	4.53	4.45	4.63	4.18	4.20	4.85	5.06	5.19	5.05	4.92	4.93	4.76	4.56	4.38	4.52	4.57	4.75
Total asset turnover	0.49	0.49	0.48	0.52	0.53	0.52	0.45	0.43	0.47	0.52	0.54	0.53	0.51	0.51	0.50	0.49	0.47	0.47	0.51	0.53

Johnson & Johnson's Fixed Asset Turnover ratio has shown fluctuations over the years but has generally trended upwards from 4.75 in March 2020 to 4.31 in December 2024. This indicates that the company generated $4.31 in sales for each dollar invested in fixed assets by the end of 2024.

On the other hand, the Total Asset Turnover ratio reflects the company's ability to generate sales relative to its total assets. From March 2020 to December 2024, the ratio fluctuated but remained relatively stable around the 0.47 to 0.54 range. This suggests that for every dollar of assets, Johnson & Johnson generated between $0.47 and $0.54 in sales over this period.

Overall, both ratios indicate that Johnson & Johnson efficiently utilizes its assets to generate sales, with the Fixed Asset Turnover ratio showing an improvement in efficiency over the years. Further analysis and comparison with industry peers would provide more insights into the company's long-term asset management effectiveness.