Johnson & Johnson (JNJ)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 38,608,000 | 38,819,000 | 17,062,000 | 15,832,000 | 22,226,000 | 22,017,000 | 20,515,000 | 21,339,000 | 22,959,000 | 19,797,000 | 20,373,000 | 17,656,000 | 16,698,000 | 19,267,000 | 16,517,000 | 19,656,000 | 17,646,000 | 16,715,000 | 19,686,000 | 17,788,000 |
| Interest expense (ttm) | US$ in thousands | 904,000 | 930,000 | 789,000 | 481,000 | 276,000 | 159,000 | 128,000 | 130,000 | 183,000 | 210,000 | 234,000 | 239,000 | 201,000 | 199,000 | 203,000 | 241,000 | 318,000 | 483,000 | 678,000 | 848,000 |
| Interest coverage | 42.71 | 41.74 | 21.62 | 32.91 | 80.53 | 138.47 | 160.27 | 164.15 | 125.46 | 94.27 | 87.06 | 73.87 | 83.07 | 96.82 | 81.36 | 81.56 | 55.49 | 34.61 | 29.04 | 20.98 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $38,608,000K ÷ $904,000K
= 42.71
The interest coverage ratio for Johnson & Johnson has been fluctuating over the past eight quarters, with no data reported for Q1-Q4 2023. In Q2 2022, the interest coverage ratio was 1,515.06, indicating that the company generated significantly more operating income relative to its interest expenses. However, in Q1 2022, the ratio dropped to 347.53, which suggests a decrease in the company's ability to cover its interest payments with its operating income. It is important to monitor the trend in future quarters to assess the company's financial health and its ability to meet its debt obligations.
Peer comparison
Dec 31, 2023