Johnson & Johnson (JNJ)
Working capital 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 |
| Total current assets | US$ in thousands | 53,495,000 | 55,294,000 | 60,979,000 | 51,237,000 | 45,274,000 |
| Total current liabilities | US$ in thousands | 46,282,000 | 55,802,000 | 45,226,000 | 42,493,000 | 35,964,000 |
| Working capital turnover | 11.65 | — | 5.93 | 9.40 | 8.75 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $84,021,000K ÷ ($53,495,000K – $46,282,000K)
= 11.65
The working capital turnover ratio for Johnson & Johnson has shown fluctuations over the past five years. In 2023, the ratio stood at 11.81, indicating that the company generated $11.81 in revenue for every dollar of working capital invested. This represents a significant improvement from the previous year where data is not provided.
Comparing 2023 to 2022, there was a substantial increase in the working capital turnover ratio from 5.95 to 11.81, suggesting that Johnson & Johnson efficiently utilized its working capital to generate revenue. Similarly, in 2021, the ratio was 9.44, indicating a slight decrease from the current year but still a strong performance in terms of working capital efficiency.
In contrast, in 2019, the working capital turnover ratio was 8.81, slightly lower than the current year but still indicative of effective management of working capital to generate revenue. Overall, the trend in the working capital turnover ratio for Johnson & Johnson shows fluctuations but generally reflects the company's ability to efficiently utilize its working capital to drive revenue generation.
Peer comparison
Dec 31, 2023