Johnson & Johnson (JNJ)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 14,873,000 | 16,160,000 | 15,283,000 | 13,576,000 | 14,481,000 |
| Total current liabilities | US$ in thousands | 46,282,000 | 55,802,000 | 45,226,000 | 42,493,000 | 35,964,000 |
| Quick ratio | 0.91 | 0.70 | 1.08 | 0.95 | 0.97 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($21,859,000K
+ $5,541,000K
+ $14,873,000K)
÷ $46,282,000K
= 0.91
The quick ratio of Johnson & Johnson has fluctuated over the past five years, indicating varying levels of liquidity. In 2023, the quick ratio stands at 0.91, showing a slight improvement from the previous year. Despite this increase, the ratio remains below 1, suggesting that the company may have difficulty meeting its short-term obligations using its most liquid assets only.
Comparing to previous years, in 2022, the quick ratio was relatively high at 1.12, indicating better short-term liquidity. However, in 2021 and 2020, the quick ratio was below 1, implying that Johnson & Johnson had limited ability to cover immediate liabilities with its current liquid assets.
It is important for investors and stakeholders to closely monitor Johnson & Johnson's quick ratio to assess its ability to manage short-term financial obligations and potential liquidity risks.
Peer comparison
Dec 31, 2023