Johnson & Johnson (JNJ)
Working capital 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 |
| Total current assets | US$ in thousands | 55,893,000 | 53,495,000 | 55,294,000 | 60,979,000 | 51,237,000 |
| Total current liabilities | US$ in thousands | 50,321,000 | 46,282,000 | 55,802,000 | 45,226,000 | 42,493,000 |
| Working capital turnover | 15.90 | 11.65 | — | 5.93 | 9.40 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $88,607,000K ÷ ($55,893,000K – $50,321,000K)
= 15.90
The working capital turnover of Johnson & Johnson has shown fluctuating trends over the years. In 2020, the working capital turnover ratio stood at 9.40, indicating that the company generated $9.40 in revenue for every dollar of working capital invested.
However, by the end of 2021, the ratio decreased to 5.93, suggesting a potential inefficiency in utilizing its working capital to generate revenue. The data for 2022 is not available in the provided dataset.
In 2023, there was a significant improvement in the working capital turnover, with a ratio of 11.65, indicating a more efficient use of working capital to generate revenue.
By the end of 2024, the working capital turnover ratio further increased to 15.90, signifying a substantial enhancement in the company's ability to generate revenue from its working capital.
Overall, the varying trends in the working capital turnover of Johnson & Johnson suggest fluctuations in the efficiency of utilizing its working capital to generate revenue over the years.
Peer comparison
Dec 31, 2024