Johnson & Johnson (JNJ)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 25,881,000 | 26,886,000 | 29,985,000 | 32,635,000 | 26,494,000 |
| Total assets | US$ in thousands | 167,558,000 | 187,378,000 | 182,018,000 | 174,894,000 | 157,728,000 |
| Debt-to-assets ratio | 0.15 | 0.14 | 0.16 | 0.19 | 0.17 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $25,881,000K ÷ $167,558,000K
= 0.15
The debt-to-assets ratio of Johnson & Johnson has fluctuated over the past five years, ranging from 0.18 to 0.21. The ratio indicates the proportion of the company's total debt to its total assets. A lower debt-to-assets ratio suggests that the company relies less on debt financing and has a stronger financial position, as a larger portion of its assets are funded by equity.
Johnson & Johnson's decreasing trend in the debt-to-assets ratio from 0.21 in Jan 1, 2023, to 0.18 in Dec 31, 2023, indicates a positive shift towards a reduced reliance on debt and potentially a stronger balance sheet. However, it's important to note that a low debt-to-assets ratio may also signify underutilization of debt for potential growth opportunities or investments.
Overall, Johnson & Johnson's consistent maintenance of a relatively low debt-to-assets ratio, along with a decreasing trend in recent years, suggests a prudent approach to managing its debt levels and maintaining a sound financial position.
Peer comparison
Dec 31, 2023