Johnson & Johnson (JNJ)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 88,607,000 | 84,021,000 | 79,428,000 | 93,356,000 | 82,174,000 |
| Receivables | US$ in thousands | 14,842,000 | 14,873,000 | 16,160,000 | 15,283,000 | 13,576,000 |
| Receivables turnover | 5.97 | 5.65 | 4.92 | 6.11 | 6.05 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $88,607,000K ÷ $14,842,000K
= 5.97
The receivables turnover ratio for Johnson & Johnson has shown some variation over the past five years. In 2020, the ratio was 6.05, indicating that the company collected its accounts receivable approximately 6 times during that year. This ratio increased slightly to 6.11 in 2021, suggesting an improvement in the efficiency of receivables collection.
However, by 2022, the receivables turnover ratio dropped to 4.92, signaling that the company took longer to collect its receivables compared to the previous year. The ratio then increased to 5.65 in 2023 and further to 5.97 in 2024, showing a partial recovery in receivables collection efficiency.
Overall, the fluctuation in the receivables turnover ratio for Johnson & Johnson indicates some variability in the effectiveness of the company's credit management and collection policies over the years. Further analysis of the reasons behind these fluctuations could provide insights into the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2024