Johnson & Johnson (JNJ)
Debt-to-equity 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-equity ratio | 0.38 | 0.35 | 0.41 | 0.52 | 0.45 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $25,881,000K ÷ $68,774,000K
= 0.38
The debt-to-equity ratio of Johnson & Johnson has fluctuated over the past five years, ranging from 0.43 in 2023 to 0.56 in 2021. A decreasing trend in this ratio indicates a lesser reliance on debt financing relative to equity financing. This could imply a stronger financial position and lower financial risk for the company. However, it is important to note that a debt-to-equity ratio of 0.43 in 2023 still indicates that Johnson & Johnson has a significant level of debt compared to shareholders' equity. Thus, further analysis of the company's financial structure and debt management strategies is advisable to gain a more comprehensive understanding of its financial health.
Peer comparison
Dec 31, 2023