Johnson & Johnson (JNJ)

Debt-to-equity ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	30,651,000	25,881,000	26,886,000	29,985,000	32,635,000
Total stockholders’ equity	US$ in thousands	71,490,000	68,774,000	76,804,000	74,023,000	63,278,000
Debt-to-equity ratio		0.43	0.38	0.35	0.41	0.52

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $30,651,000K ÷ $71,490,000K
= 0.43

Johnson & Johnson's debt-to-equity ratio has shown a decreasing trend over the past five years, starting at 0.52 in 2020 and dropping to 0.41 in 2021, 0.35 in 2022, 0.38 in 2023, and then increasing slightly to 0.43 in 2024. This indicates that the company has been relying less on debt to finance its operations and growth, and has been increasingly using equity. A lower debt-to-equity ratio is generally considered favorable as it suggests lower financial risk and a stronger financial position. However, the slight increase in 2024 could indicate a shift in the company's financing strategy. Overall, Johnson & Johnson's decreasing debt-to-equity ratio reflects a prudent approach to balancing its capital structure.