Johnson & Johnson (JNJ)
Quick ratio
| 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 | US$ in thousands | 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 | 17,305,000 | 16,249,000 | 14,376,000 | 14,734,000 |
| Short-term investments | US$ in thousands | 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 | 1,982,000 | 1,695,000 | 1,865,000 | 1,432,000 |
| Receivables | US$ in thousands | 14,873,000 | 14,798,000 | 16,777,000 | — | 16,160,000 | — | — | — | 15,283,000 | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 35,964,000 | 35,162,000 | 31,353,000 | 29,111,000 |
| 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 |
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 shown some fluctuation over the past eight quarters. The quick ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets.
In Q4 2023, the quick ratio was 0.91, indicating that the company had $0.91 of liquid assets available to cover each $1 of current liabilities. This was a decrease compared to the previous quarter (Q3 2023) when the quick ratio was 0.96.
Looking back over the past two years, the quick ratio has generally been above 1, indicating a healthy ability to meet short-term obligations. However, there have been some periods, such as Q1 2023 and Q4 2022, where the quick ratio was below 1, suggesting a potential strain on short-term liquidity.
Overall, the trend in Johnson & Johnson's quick ratio over the past eight quarters indicates some variability in the company's short-term liquidity position. It would be important to monitor this ratio closely to ensure the company can comfortably meet its short-term financial obligations in the future.
Peer comparison
Dec 31, 2023