Johnson & Johnson (JNJ)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 68,774,000 | 76,804,000 | 74,023,000 | 63,278,000 | 59,471,000 |
| Debt-to-capital ratio | 0.27 | 0.26 | 0.29 | 0.34 | 0.31 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $25,881,000K ÷ ($25,881,000K + $68,774,000K)
= 0.27
The debt-to-capital ratio of Johnson & Johnson has shown a general downward trend over the past five years, indicating a decreasing reliance on debt in relation to its overall capital structure. In the most recent year, as of December 31, 2023, the ratio stood at 0.30, which is lower compared to the previous four years. This trend suggests that Johnson & Johnson has been managing its debt levels effectively and potentially utilizing other sources of capital to fund its operations and investments. It indicates a healthier balance between debt and equity financing, which can be viewed positively by investors and creditors as it signifies lower financial risk. Overall, the declining trend in the debt-to-capital ratio reflects a potentially stronger financial position and prudent debt management by Johnson & Johnson.
Peer comparison
Dec 31, 2023