Johnson & Johnson (JNJ)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.16 | 0.18 | 0.18 | 0.14 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.19 | 0.19 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.18 |
| Debt-to-capital ratio | 0.27 | 0.27 | 0.31 | 0.33 | 0.26 | 0.27 | 0.27 | 0.28 | 0.29 | 0.30 | 0.30 | 0.31 | 0.34 | 0.34 | 0.28 | 0.29 | 0.31 | 0.32 | 0.31 | 0.32 |
| Debt-to-equity ratio | 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 | 0.45 | 0.46 | 0.46 | 0.47 |
| Financial leverage ratio | 2.44 | 2.33 | 2.55 | 2.77 | 2.44 | 2.35 | 2.33 | 2.39 | 2.46 | 2.55 | 2.54 | 2.62 | 2.76 | 2.65 | 2.51 | 2.53 | 2.65 | 2.67 | 2.55 | 2.54 |
Johnson & Johnson's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.18 to 0.27 over the past eight quarters, suggesting that the company relies moderately on debt to finance its assets.
The debt-to-capital ratio has also remained consistent between 0.30 and 0.43, indicating that a significant portion of the company's capital structure is financed through debt. Similarly, the debt-to-equity ratio fluctuates between 0.42 and 0.75, showing the varying levels of debt relative to shareholders' equity.
The financial leverage ratio, which measures the company's reliance on debt to fund its operations, has ranged from 2.33 to 2.77 over the same period. This indicates the extent to which the company is using debt to support its business activities.
Overall, Johnson & Johnson appears to have a moderate level of solvency risk based on these ratios, with a consistent but not excessive reliance on debt to support its operations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Johnson & Johnson has shown significant fluctuations over the past eight quarters. In Q1 2022, the interest coverage ratio was 347.53, indicating that the company earned 347.53 times the amount of interest expense it incurred during that quarter. This was a strong and healthy interest coverage ratio.
However, the interest coverage ratio for the subsequent quarters, Q2 2022 to Q4 2023, is not available in the data provided. The fact that these values are missing may suggest that the company may have experienced changes in its financial performance and/or capital structure during this period.
It's important to note that an interest coverage ratio above 1 typically signifies that a company is generating enough operating income to cover its interest payments. In the absence of data for the later quarters, it is challenging to provide a comprehensive analysis of the trend in Johnson & Johnson's interest coverage ratio over time. Further analysis with complete data would be needed to assess the company's ability to meet its interest obligations consistently.