Johnson & Johnson (JNJ)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 167,558,000 | 187,378,000 | 182,018,000 | 174,894,000 | 157,728,000 |
| Total stockholders’ equity | US$ in thousands | 68,774,000 | 76,804,000 | 74,023,000 | 63,278,000 | 59,471,000 |
| Financial leverage ratio | 2.44 | 2.44 | 2.46 | 2.76 | 2.65 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $167,558,000K ÷ $68,774,000K
= 2.44
The financial leverage ratio of Johnson & Johnson has been relatively stable over the past five years, ranging from 2.44 to 2.76. This ratio indicates that, on average, the company has been financing its operations with a higher proportion of debt compared to equity. The slight fluctuations in the ratio suggest that the company has maintained a consistent level of financial leverage, with a minor increase in leverage in 2021 followed by a slight decrease in subsequent years. Overall, the financial leverage ratio of Johnson & Johnson indicates a moderate level of debt in its capital structure, which can be indicative of the company's ability to effectively utilize debt to finance its operations and investments.
Peer comparison
Dec 31, 2023