Johnson & Johnson (JNJ)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	88,452,000	87,541,000	86,229,000	88,966,000	88,632,000	87,176,000	85,962,000	84,760,000	87,282,000	91,851,000	95,224,000	94,514,000	93,356,000	91,027,000	88,747,000	83,766,000	82,174,000	80,742,000	80,385,000	82,573,000
Total current assets	US$ in thousands	55,893,000	53,249,000	57,817,000	57,002,000	53,495,000	53,703,000	60,567,000	64,388,000	55,294,000	65,236,000	63,847,000	60,424,000	60,979,000	59,889,000	53,769,000	52,533,000	51,237,000	57,578,000	45,892,000	44,226,000
Total current liabilities	US$ in thousands	50,321,000	51,759,000	53,933,000	48,725,000	46,282,000	44,370,000	54,170,000	60,373,000	55,802,000	45,543,000	44,821,000	43,390,000	45,226,000	44,561,000	38,721,000	40,932,000	42,493,000	38,847,000	36,772,000	33,689,000
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $88,452,000K ÷ ($55,893,000K – $50,321,000K)
= 15.87

Johnson & Johnson's working capital turnover has fluctuated over the past few years, ranging from as low as 4.31 to as high as 58.75. A higher working capital turnover indicates that the company is efficient in managing its working capital to generate sales.

In the recent periods, the working capital turnover has shown significant variability. For example, in December 2024, the working capital turnover was 15.87, indicating an improvement in efficiency compared to the previous period. However, in September 2022, the working capital turnover dropped to 4.66, suggesting a potential liquidity concern or inefficiency in working capital management at that time.

It is important for Johnson & Johnson to consistently monitor and improve its working capital turnover to ensure optimal utilization of its working capital resources and to support its operational activities effectively. The company may need to review its inventory management, accounts receivable, and accounts payable processes to maintain a healthy balance between liquidity and operational efficiency.