Johnson & Johnson (JNJ)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 21,859,000 | 12,889,000 | 14,487,000 | 13,985,000 | 17,305,000 |
| Short-term investments | US$ in thousands | 5,541,000 | 9,968,000 | 19,005,000 | 12,681,000 | 3,130,000 |
| Total current liabilities | US$ in thousands | 46,282,000 | 55,802,000 | 45,226,000 | 42,493,000 | 35,964,000 |
| Cash ratio | 0.59 | 0.41 | 0.74 | 0.63 | 0.57 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($21,859,000K
+ $5,541,000K)
÷ $46,282,000K
= 0.59
The cash ratio of Johnson & Johnson has fluctuated over the past five years, ranging from 0.48 to 0.78. The ratio indicates the company's ability to cover its short-term liabilities with its cash and cash equivalents.
In 2023, the cash ratio was 0.59, showing an improvement compared to the previous year but still lower than the ratio in 2022. This suggests that Johnson & Johnson had a higher level of cash and cash equivalents relative to its current liabilities in 2023.
Overall, the trend of the cash ratio indicates that Johnson & Johnson has maintained a relatively stable liquidity position over the years, with fluctuations reflecting changes in its cash holdings and short-term obligations. A higher cash ratio indicates a stronger ability to meet short-term obligations using liquid assets, which can be a positive sign of financial stability for the company.
Peer comparison
Dec 31, 2023