Johnson & Johnson (JNJ)

Debt-to-capital 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
Long-term debt	US$ in thousands	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	26,494,000	26,919,000	27,699,000	27,660,000
Total stockholders’ equity	US$ in thousands	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	59,471,000	58,210,000	60,785,000	58,955,000
Debt-to-capital ratio		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	0.31	0.32	0.31	0.32

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

Johnson & Johnson's debt-to-capital ratio has shown some fluctuations over the past eight quarters. The ratio was relatively stable around 0.30 from Q4 2022 to Q2 2023 before increasing to 0.43 in Q1 2023. This spike in Q1 2023 indicates a higher proportion of debt in the company's capital structure compared to the previous quarters. However, in Q3 2023, the ratio reverted back to 0.30, suggesting a decrease in the level of debt relative to total capital.

Overall, Johnson & Johnson’s debt-to-capital ratio remains within a reasonable range, indicating a healthy balance between debt and equity financing. However, the fluctuations in the ratio should be further analyzed to understand the underlying reasons and potential implications for the company's financial health and risk profile.