Johnson & Johnson (JNJ)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 16,766,000 | 37,661,000 | 22,001,000 | 22,959,000 | 16,698,000 |
| Interest expense | US$ in thousands | 79,000 | 772,000 | 276,000 | 183,000 | 201,000 |
| Interest coverage | 212.23 | 48.78 | 79.71 | 125.46 | 83.07 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $16,766,000K ÷ $79,000K
= 212.23
Johnson & Johnson's interest coverage has shown fluctuations over the years. In 2020, the interest coverage ratio was 83.07, indicating the company's ability to cover interest payments 83 times over. The ratio improved in 2021 to 125.46, suggesting a stronger ability to meet interest obligations. However, there was a decline in 2022 to 79.71, albeit still a relatively strong coverage level. In 2023, the interest coverage decreased further to 48.78, signaling a potential increase in financial risk. The ratio significantly improved in 2024 to 212.23, showcasing a robust ability to service interest expenses. Overall, fluctuations in interest coverage ratios can reflect changes in the company's financial performance and debt management strategies.
Peer comparison
Dec 31, 2024