Johnson & Johnson (JNJ)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 21,859,000 | 19,728,000 | 21,183,000 | 19,170,000 | 12,889,000 | 11,355,000 | 10,983,000 | 10,463,000 | 14,487,000 | 17,604,000 | 14,332,000 | 12,671,000 | 13,985,000 | 18,965,000 | 11,174,000 | 15,530,000 | 17,305,000 | 16,249,000 | 14,376,000 | 14,734,000 |
| Short-term investments | US$ in thousands | 5,541,000 | 3,786,000 | 7,330,000 | 13,151,000 | 9,968,000 | 22,773,000 | 21,631,000 | 19,945,000 | 19,005,000 | 13,397,000 | 10,974,000 | 11,947,000 | 11,200,000 | 11,815,000 | 7,960,000 | 2,492,000 | 1,982,000 | 1,695,000 | 1,865,000 | 1,432,000 |
| 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 |
| Cash ratio | 0.59 | 0.53 | 0.53 | 0.54 | 0.41 | 0.75 | 0.73 | 0.70 | 0.74 | 0.70 | 0.65 | 0.60 | 0.59 | 0.79 | 0.52 | 0.53 | 0.54 | 0.51 | 0.52 | 0.56 |
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 demonstrated some fluctuations over the quarters. In Q4 2023, the cash ratio was 0.59, showing a slight decrease from the previous quarter's ratio of 0.62 in Q3 2023. Compared to the same quarter last year, the cash ratio has decreased significantly from 0.83 in Q4 2022.
The cash ratio indicates the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio is generally preferred as it suggests that the company has enough liquid assets to meet its upcoming obligations.
The decreasing trend in Johnson & Johnson's cash ratio could be a concern as it may indicate a potential strain on the company's liquidity position. It is essential for investors and stakeholders to monitor the trend closely to assess the company's financial stability and ability to meet its short-term obligations. Further analysis, in conjunction with other financial metrics, would provide a more comprehensive view of the company's financial health.
Peer comparison
Dec 31, 2023