Johnson & Johnson (JNJ)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 84,021,000 | 79,428,000 | 93,356,000 | 82,174,000 | 81,474,000 |
| Receivables | US$ in thousands | 14,873,000 | 16,160,000 | 15,283,000 | 13,576,000 | 14,481,000 |
| Receivables turnover | 5.65 | 4.92 | 6.11 | 6.05 | 5.63 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $84,021,000K ÷ $14,873,000K
= 5.65
The receivables turnover ratio for Johnson & Johnson has shown a relatively stable trend over the past five years. The ratio has ranged from 5.67 to 6.14, indicating that, on average, Johnson & Johnson collects its accounts receivable approximately 5.73 to 6.14 times per year.
A higher receivables turnover ratio is generally preferred as it indicates that the company is collecting its receivables more quickly. Johnson & Johnson's receivables turnover ratio has been consistently above 5, which suggests that the company has been efficient in collecting payments from its customers.
Overall, the stability and relatively high values of Johnson & Johnson's receivables turnover ratio over the past five years indicate effective management of accounts receivable and a healthy cash flow cycle.
Peer comparison
Dec 31, 2023