Johnson & Johnson (JNJ)

Debt-to-capital 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
Long-term debt	US$ in thousands	30,651,000	31,289,000	31,636,000	25,082,000	25,881,000	26,051,000	33,901,000	34,928,000	26,886,000	27,603,000	28,292,000	28,851,000	29,985,000	30,130,000	30,310,000	30,263,000	32,635,000	32,680,000	25,062,000	25,393,000
Total stockholders’ equity	US$ in thousands	71,490,000	70,158,000	71,538,000	70,020,000	68,774,000	71,228,000	75,149,000	70,869,000	76,804,000	74,599,000	76,357,000	74,709,000	74,023,000	70,272,000	69,580,000	65,834,000	63,278,000	64,473,000	62,978,000	61,294,000
Debt-to-capital ratio		0.30	0.31	0.31	0.26	0.27	0.27	0.31	0.33	0.26	0.27	0.27	0.28	0.29	0.30	0.30	0.31	0.34	0.34	0.28	0.29

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $30,651,000K ÷ ($30,651,000K + $71,490,000K)
= 0.30

The debt-to-capital ratio of Johnson & Johnson has shown some fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a low of 0.26 to a high of 0.34 during this period. Generally, a decreasing trend can be observed, indicating that the company has been reducing its reliance on debt to finance its operations relative to its total capital. This trend is a positive sign as it demonstrates the company's ability to manage its debt levels effectively and maintain a healthy balance between debt and equity in its capital structure. The decreasing trend in the debt-to-capital ratio may suggest that Johnson & Johnson is becoming less leveraged over time, which could enhance its financial stability and resilience to economic downturns. Additionally, a decreasing ratio may also imply improved creditworthiness and lower financial risk for the company.