Johnson & Johnson (JNJ)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 53,495,000 | 55,294,000 | 60,979,000 | 51,237,000 | 45,274,000 |
| Total current liabilities | US$ in thousands | 46,282,000 | 55,802,000 | 45,226,000 | 42,493,000 | 35,964,000 |
| Current ratio | 1.16 | 0.99 | 1.35 | 1.21 | 1.26 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $53,495,000K ÷ $46,282,000K
= 1.16
The current ratio of Johnson & Johnson has fluctuated over the past five years, ranging from 0.99 to 1.35. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
In 2023, Johnson & Johnson's current ratio improved to 1.16 from 0.99 in 2022, indicating an increase in the company's liquidity and its ability to cover its short-term liabilities. However, compared to 2022, the current ratio is still lower than that in 2022 and 2019.
The current ratio of 1.16 in 2023 suggests that Johnson & Johnson had $1.16 in current assets available to cover every $1 of current liabilities. While an increasing current ratio generally indicates improved liquidity, it is essential to consider the specific industry and company circumstances when interpreting this ratio.
Further analysis would be needed to understand the underlying reasons for the changes in Johnson & Johnson's current ratio over the years and to assess its overall financial health and short-term liquidity position.
Peer comparison
Dec 31, 2023