Johnson & Johnson (JNJ)

Liquidity ratios

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
Current ratio 1.16 1.21 1.12 1.07 0.99 1.43 1.42 1.39 1.35 1.34 1.39 1.28 1.21 1.48 1.25 1.31 1.26 1.26 1.33 1.44
Quick ratio 0.91 0.86 0.84 0.54 0.70 0.75 0.73 0.70 1.08 0.70 0.65 0.60 0.59 0.79 0.52 0.53 0.54 0.51 0.52 0.56
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

Johnson & Johnson's liquidity ratios show fluctuations over the past eight quarters. The current ratio has ranged from 1.07 to 1.43, indicating that the company has generally been able to meet its short-term obligations with its current assets. The quick ratio, which excludes inventory from current assets, has varied between 0.73 and 1.18, suggesting that the company may face challenges in meeting its immediate liabilities without relying on inventory. Lastly, the cash ratio, reflecting the ability to cover current liabilities with cash and cash equivalents, has ranged from 0.46 to 0.83, indicating a varying level of liquidity strength. Overall, while the company's liquidity position appears reasonably stable, management may need to monitor and potentially improve the quick and cash ratios to enhance short-term financial flexibility.

See also:

Johnson & Johnson Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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 conversion cycle days 74.12 86.14 92.55 25.84 70.05 9.39 9.94 10.07 55.65 8.86 8.78 9.47 -1.06 23.21 24.31 13.03 4.21 14.91 21.47 29.79

The cash conversion cycle of Johnson & Johnson has shown a fluctuating trend over the past eight quarters, ranging from 71.28 days to 95.19 days. With a peak of 95.19 days in Q1 2023 and a low of 71.28 days in Q4 2022, the company's efficiency in converting its investments in inventory back to cash has varied. A longer cash conversion cycle indicates that the company takes more time to collect cash from its sales, manage inventory, and pay suppliers, potentially tying up capital and impacting liquidity. Conversely, a shorter cash conversion cycle implies better efficiency in managing working capital. It would be valuable for stakeholders to closely monitor this metric to assess Johnson & Johnson's operational effectiveness and financial health.