Johnson & Johnson (JNJ)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 55,893,000 | 53,495,000 | 55,294,000 | 60,979,000 | 51,237,000 |
| Total current liabilities | US$ in thousands | 50,321,000 | 46,282,000 | 55,802,000 | 45,226,000 | 42,493,000 |
| Current ratio | 1.11 | 1.16 | 0.99 | 1.35 | 1.21 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $55,893,000K ÷ $50,321,000K
= 1.11
Johnson & Johnson's current ratio has fluctuated over the past five years. As of December 31, 2020, the current ratio was 1.21, indicating that the company had $1.21 in current assets for every $1 in current liabilities.
By December 31, 2021, the current ratio improved to 1.35, suggesting a stronger liquidity position compared to the previous year. However, by December 31, 2022, the current ratio decreased to 0.99, falling below the ideal threshold of 1. This may raise concerns about the company's ability to meet its short-term obligations.
Subsequently, by December 31, 2023, the current ratio recovered to 1.16, showing a slight improvement in liquidity. However, by December 31, 2024, the current ratio decreased slightly to 1.11, still indicating that Johnson & Johnson has sufficient current assets to cover its current liabilities.
Overall, while the current ratio fluctuated in the five-year period, it remained mostly above 1, suggesting that Johnson & Johnson generally maintained a healthy liquidity position to meet its short-term obligations.
Peer comparison
Dec 31, 2024