Johnson & Johnson (JNJ)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 24,105,000 | 19,980,000 | 24,878,000 | 25,473,000 | 21,859,000 | 19,728,000 | 21,183,000 | 19,170,000 | 12,889,000 | 11,355,000 | 10,983,000 | 10,463,000 | 14,487,000 | 17,604,000 | 14,332,000 | 12,671,000 | 13,985,000 | 18,965,000 | 11,174,000 | 15,530,000 |
| Short-term investments | US$ in thousands | 868,000 | 317,000 | 597,000 | 743,000 | 5,541,000 | 3,786,000 | 7,330,000 | 13,151,000 | 9,968,000 | 22,773,000 | 21,631,000 | 19,945,000 | 19,005,000 | 13,397,000 | 10,974,000 | 11,947,000 | 11,200,000 | 11,815,000 | 7,960,000 | 2,492,000 |
| Receivables | US$ in thousands | 14,842,000 | 16,174,000 | 15,794,000 | 14,946,000 | 14,873,000 | 14,798,000 | 16,777,000 | — | 16,160,000 | — | — | — | 15,283,000 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 50,321,000 | 51,759,000 | 53,933,000 | 48,725,000 | 46,282,000 | 44,370,000 | 54,170,000 | 60,373,000 | 55,802,000 | 45,543,000 | 44,821,000 | 43,390,000 | 45,226,000 | 44,561,000 | 38,721,000 | 40,932,000 | 42,493,000 | 38,847,000 | 36,772,000 | 33,689,000 |
| Quick ratio | 0.79 | 0.70 | 0.77 | 0.84 | 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 |
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, also known as the acid-test ratio, is an important liquidity ratio that measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio of less than 1 indicates that a company may have difficulty meeting its short-term liabilities, while a ratio of 1 or higher suggests that the company can cover its short-term obligations more comfortably.
Based on the data provided for Johnson & Johnson, the quick ratio has fluctuated over the past few years. As of December 31, 2021, the quick ratio was 1.08, indicating that the company had more than enough liquid assets to cover its current liabilities. However, the quick ratio decreased in subsequent periods, reaching a low of 0.52 on June 30, 2020. This decrease may raise concerns about the company's ability to meet its short-term obligations efficiently during that period.
From December 31, 2021, to December 31, 2024, the quick ratio remained relatively stable, fluctuating between 0.70 and 0.91. This stability suggests that Johnson & Johnson maintained a healthy level of liquidity to address its immediate financial commitments over these periods.
Overall, while the quick ratio has shown some variability, it is essential to consider other financial metrics and factors when evaluating Johnson & Johnson's liquidity position comprehensively. Monitoring the trend of the quick ratio over time can provide valuable insights into the company's short-term financial health and management of liquid resources.
Peer comparison
Dec 31, 2024