Johnson & Johnson (JNJ)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 24,105,000 | 21,859,000 | 12,889,000 | 14,487,000 | 13,985,000 |
| Short-term investments | US$ in thousands | 868,000 | 5,541,000 | 9,968,000 | 19,005,000 | 12,681,000 |
| Receivables | US$ in thousands | 14,842,000 | 14,873,000 | 16,160,000 | 15,283,000 | 13,576,000 |
| Total current liabilities | US$ in thousands | 50,321,000 | 46,282,000 | 55,802,000 | 45,226,000 | 42,493,000 |
| Quick ratio | 0.79 | 0.91 | 0.70 | 1.08 | 0.95 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($24,105,000K
+ $868,000K
+ $14,842,000K)
÷ $50,321,000K
= 0.79
The quick ratio of Johnson & Johnson has shown some fluctuations over the past five years. In December 2020, the quick ratio was 0.95, indicating that the company had $0.95 in liquid assets available to cover each $1 of current liabilities. By December 2021, the quick ratio improved to 1.08, suggesting an increase in the company's ability to meet its short-term obligations with readily available assets.
However, in December 2022, the quick ratio decreased to 0.70, signaling a potential liquidity strain as the company may have had insufficient liquid assets to cover its current liabilities. The ratio recovered slightly by December 2023 to 0.91 but remained below the ideal threshold of 1, indicating some room for improvement in managing short-term liquidity.
In December 2024, the quick ratio further declined to 0.79, once again falling short of the benchmark of 1. This trend suggests that Johnson & Johnson may need to focus on improving its liquidity position and ensuring it has enough liquid assets to meet its short-term obligations comfortably in the future.
Peer comparison
Dec 31, 2024