Johnson & Johnson (JNJ)

Debt-to-equity 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-equity ratio		0.43	0.45	0.44	0.36	0.38	0.37	0.45	0.49	0.35	0.37	0.37	0.39	0.41	0.43	0.44	0.46	0.52	0.51	0.40	0.41

December 31, 2024 calculation

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

The debt-to-equity ratio of Johnson & Johnson has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The ratio decreased from 0.41 on March 31, 2020, to 0.35 on December 31, 2022, before experiencing a slight increase in the subsequent periods.

A decreasing trend in the debt-to-equity ratio indicates that the company is relying more on equity financing relative to debt, which can be seen as a positive sign of financial stability and lower financial risk. On the other hand, an increasing trend may suggest that the company is taking on more debt, potentially increasing financial leverage and risk.

Overall, the debt-to-equity ratio of Johnson & Johnson remained relatively stable within the range of 0.35 to 0.52 during the period under review, reflecting a balanced capital structure with a prudent mix of debt and equity financing.