Johnson & Johnson (JNJ)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 180,104,000 | 167,558,000 | 187,378,000 | 182,018,000 | 174,894,000 |
| Total stockholders’ equity | US$ in thousands | 71,490,000 | 68,774,000 | 76,804,000 | 74,023,000 | 63,278,000 |
| Financial leverage ratio | 2.52 | 2.44 | 2.44 | 2.46 | 2.76 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $180,104,000K ÷ $71,490,000K
= 2.52
The financial leverage ratio of Johnson & Johnson has shown a slight decrease over the years, declining from 2.76 in December 31, 2020, to 2.46 in December 31, 2021, and remaining relatively stable at 2.44 from December 31, 2022 to December 31, 2023. However, there was a slight uptick to 2.52 by December 31, 2024. This ratio indicates that the company relies more on debt financing rather than equity, with a higher ratio suggesting higher financial risk. Despite the fluctuations, Johnson & Johnson has maintained a moderate level of financial leverage, which is typically manageable for a well-established company like theirs. It is important for the company to continue monitoring and managing its debt levels effectively to ensure financial stability and growth in the future.
Peer comparison
Dec 31, 2024