Johnson & Johnson (JNJ)
Working capital turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 81,826,000 | 81,473,000 | 80,897,000 | 81,248,000 |
| Total current assets | US$ in thousands | 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 | 45,274,000 | 44,333,000 | 41,799,000 | 41,987,000 |
| Total current liabilities | US$ in thousands | 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 | 35,964,000 | 35,162,000 | 31,353,000 | 29,111,000 |
| Working capital turnover | 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 | 8.79 | 8.88 | 7.74 | 6.31 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $88,632,000K ÷ ($53,495,000K – $46,282,000K)
= 12.29
From the provided data of Johnson & Johnson's working capital turnover ratio over the past eight quarters, we can observe fluctuations in the efficiency of the company's management of its working capital.
The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its current assets to support its operations and generate revenue.
Looking at the trend over the past eight quarters, we see that the working capital turnover ratio has experienced significant variability. In Q1 2023, the ratio was at its highest at 23.98, indicating a high level of efficiency in converting working capital into sales. This could be attributed to effective management of inventory, accounts receivable, and accounts payable during that quarter.
In contrast, the ratio dropped to 4.88 in Q3 2022, suggesting a decrease in efficiency in utilizing working capital to generate sales. However, there was a subsequent improvement in the following quarters.
Overall, Johnson & Johnson's working capital turnover ratio displays volatility, with fluctuations indicating varying levels of efficiency in managing working capital to support operations and drive revenue generation. Further analysis and comparison with industry benchmarks would provide more insights into the company's working capital management performance.
Peer comparison
Dec 31, 2023