Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Johnson & Johnson, short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Turnover Ratios
Inventory turnover 2.37 2.49 2.87 3.04 3.05
Receivables turnover 5.73 5.88 6.14 6.08 5.67
Payables turnover 2.76 2.66 2.70 2.99 3.23
Working capital turnover 11.81 5.95 9.44 8.81
Average No. Days
Average inventory processing period 154 147 127 120 119
Add: Average receivable collection period 64 62 59 60 64
Operating cycle 218 209 186 180 183
Less: Average payables payment period 132 137 135 122 113
Cash conversion cycle 86 72 51 58 70

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Johnson & Johnson inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. Johnson & Johnson receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Johnson & Johnson payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Johnson & Johnson number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Johnson & Johnson number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Johnson & Johnson operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Johnson & Johnson number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Johnson & Johnson cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Inventory Turnover

Johnson & Johnson, inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Selected Financial Data (US$ in millions)
Cost of products sold 26,553 31,089 29,855 28,427 27,556
Inventories 11,181 12,483 10,387 9,344 9,020
Short-term Activity Ratio
Inventory turnover1 2.37 2.49 2.87 3.04 3.05
Benchmarks
Inventory Turnover, Competitors2
AbbVie Inc. 4.98 4.87 5.58 4.65 4.10
Amgen Inc. 0.89 1.30 1.58 1.58 1.22
Bristol-Myers Squibb Co. 4.02 4.33 4.74 5.68 1.88
Eli Lilly & Co. 1.23 1.54 1.88 1.38 1.48
Gilead Sciences Inc. 3.64 3.75 4.08 2.72 5.07
Merck & Co. Inc. 2.54 2.95 2.29 2.45 2.36
Pfizer Inc. 2.45 3.82 3.40 1.08 1.23
Regeneron Pharmaceuticals Inc. 0.70 0.65 1.25 0.58 0.55
Thermo Fisher Scientific Inc. 5.06 4.60 3.88 4.02 4.22
Vertex Pharmaceuticals Inc. 1.71 2.35 2.56 2.62 3.27
Inventory Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 2.49 3.00 3.05 2.54 2.30
Inventory Turnover, Industry
Health Care 10.90 10.94 11.04 9.94 10.06

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Inventory turnover = Cost of products sold ÷ Inventories
= 26,553 ÷ 11,181 = 2.37

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Johnson & Johnson inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Receivables Turnover

Johnson & Johnson, receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Selected Financial Data (US$ in millions)
Sales to customers 85,159 94,943 93,775 82,584 82,059
Accounts receivable trade, less allowances 14,873 16,160 15,283 13,576 14,481
Short-term Activity Ratio
Receivables turnover1 5.73 5.88 6.14 6.08 5.67
Benchmarks
Receivables Turnover, Competitors2
AbbVie Inc. 4.87 5.16 5.63 5.19 6.13
Amgen Inc. 3.70 4.46 4.96 5.36 5.47
Bristol-Myers Squibb Co. 4.93 5.48 5.65 5.72 3.89
Eli Lilly & Co. 3.75 4.14 4.24 4.18 4.91
Gilead Sciences Inc. 5.78 5.65 6.01 4.98 6.18
Merck & Co. Inc. 5.81 6.27 5.28 6.11 6.91
Pfizer Inc. 5.23 9.16 7.08 5.28 5.93
Regeneron Pharmaceuticals Inc. 2.31 2.28 2.66 2.07 2.94
Thermo Fisher Scientific Inc. 5.21 5.53 4.92 5.61 5.87
Vertex Pharmaceuticals Inc. 6.31 6.19 6.66 7.01 6.57
Receivables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.90 5.72 5.49 5.32 5.56
Receivables Turnover, Industry
Health Care 9.01 9.71 9.51 9.58 9.88

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Receivables turnover = Sales to customers ÷ Accounts receivable trade, less allowances
= 85,159 ÷ 14,873 = 5.73

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Johnson & Johnson receivables turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Payables Turnover

Johnson & Johnson, payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Selected Financial Data (US$ in millions)
Cost of products sold 26,553 31,089 29,855 28,427 27,556
Accounts payable 9,632 11,703 11,055 9,505 8,544
Short-term Activity Ratio
Payables turnover1 2.76 2.66 2.70 2.99 3.23
Benchmarks
Payables Turnover, Competitors2
AbbVie Inc. 5.54 5.94 6.05 6.76 5.12
Amgen Inc. 5.32 4.08 4.72 4.33 3.18
Bristol-Myers Squibb Co. 3.28 3.33 3.37 4.34 3.30
Eli Lilly & Co. 2.73 3.43 4.38 3.41 3.36
Gilead Sciences Inc. 11.81 6.25 9.36 5.42 6.56
Merck & Co. Inc. 4.11 4.08 2.96 3.37 3.78
Pfizer Inc. 3.72 5.04 5.53 2.02 2.42
Regeneron Pharmaceuticals Inc. 2.99 2.65 4.32 2.36 1.87
Thermo Fisher Scientific Inc. 8.97 7.67 6.83 7.45 7.40
Vertex Pharmaceuticals Inc. 3.46 3.55 4.64 4.75 6.25
Payables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.18 4.21 4.21 3.79 3.67
Payables Turnover, Industry
Health Care 7.83 7.52 7.67 7.52 8.05

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Payables turnover = Cost of products sold ÷ Accounts payable
= 26,553 ÷ 9,632 = 2.76

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Johnson & Johnson payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Working Capital Turnover

Johnson & Johnson, working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Selected Financial Data (US$ in millions)
Current assets 53,495 55,294 60,979 51,237 45,274
Less: Current liabilities 46,282 55,802 45,226 42,493 35,964
Working capital 7,213 (508) 15,753 8,744 9,310
 
Sales to customers 85,159 94,943 93,775 82,584 82,059
Short-term Activity Ratio
Working capital turnover1 11.81 5.95 9.44 8.81
Benchmarks
Working Capital Turnover, Competitors2
AbbVie Inc. 0.98
Amgen Inc. 2.25 3.82 3.37 2.55 3.96
Bristol-Myers Squibb Co. 4.60 8.30 3.95 3.72 2.28
Eli Lilly & Co. 31.84 8.33 4.93 11.54
Gilead Sciences Inc. 5.61 8.42 8.54 5.30 1.08
Merck & Co. Inc. 9.29 5.16 7.62 109.83 8.90
Pfizer Inc. 11.00 4.78 4.58
Regeneron Pharmaceuticals Inc. 0.82 0.96 1.59 1.20 1.41
Thermo Fisher Scientific Inc. 4.05 5.46 5.87 2.76 4.48
Vertex Pharmaceuticals Inc. 0.93 0.85 1.02 0.99 1.19
Working Capital Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 6.87 7.58 5.75 5.50 3.51
Working Capital Turnover, Industry
Health Care 19.46 18.19 13.56 13.45 8.95

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Working capital turnover = Sales to customers ÷ Working capital
= 85,159 ÷ 7,213 = 11.81

2 Click competitor name to see calculations.


Average Inventory Processing Period

Johnson & Johnson, average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Selected Financial Data
Inventory turnover 2.37 2.49 2.87 3.04 3.05
Short-term Activity Ratio (no. days)
Average inventory processing period1 154 147 127 120 119
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
AbbVie Inc. 73 75 65 79 89
Amgen Inc. 411 281 231 231 300
Bristol-Myers Squibb Co. 91 84 77 64 194
Eli Lilly & Co. 298 237 194 265 247
Gilead Sciences Inc. 100 97 89 134 72
Merck & Co. Inc. 144 124 159 149 155
Pfizer Inc. 149 95 107 338 296
Regeneron Pharmaceuticals Inc. 519 562 292 625 661
Thermo Fisher Scientific Inc. 72 79 94 91 87
Vertex Pharmaceuticals Inc. 214 156 143 139 112
Average Inventory Processing Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 146 122 120 144 159
Average Inventory Processing Period, Industry
Health Care 33 33 33 37 36

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.37 = 154

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Johnson & Johnson number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Receivable Collection Period

Johnson & Johnson, average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Selected Financial Data
Receivables turnover 5.73 5.88 6.14 6.08 5.67
Short-term Activity Ratio (no. days)
Average receivable collection period1 64 62 59 60 64
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AbbVie Inc. 75 71 65 70 60
Amgen Inc. 99 82 74 68 67
Bristol-Myers Squibb Co. 74 67 65 64 94
Eli Lilly & Co. 97 88 86 87 74
Gilead Sciences Inc. 63 65 61 73 59
Merck & Co. Inc. 63 58 69 60 53
Pfizer Inc. 70 40 52 69 62
Regeneron Pharmaceuticals Inc. 158 160 137 177 124
Thermo Fisher Scientific Inc. 70 66 74 65 62
Vertex Pharmaceuticals Inc. 58 59 55 52 56
Average Receivable Collection Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 74 64 66 69 66
Average Receivable Collection Period, Industry
Health Care 40 38 38 38 37

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.73 = 64

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Johnson & Johnson number of days of receivables outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.

Operating Cycle

Johnson & Johnson, operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Selected Financial Data
Average inventory processing period 154 147 127 120 119
Average receivable collection period 64 62 59 60 64
Short-term Activity Ratio
Operating cycle1 218 209 186 180 183
Benchmarks
Operating Cycle, Competitors2
AbbVie Inc. 148 146 130 149 149
Amgen Inc. 510 363 305 299 367
Bristol-Myers Squibb Co. 165 151 142 128 288
Eli Lilly & Co. 395 325 280 352 321
Gilead Sciences Inc. 163 162 150 207 131
Merck & Co. Inc. 207 182 228 209 208
Pfizer Inc. 219 135 159 407 358
Regeneron Pharmaceuticals Inc. 677 722 429 802 785
Thermo Fisher Scientific Inc. 142 145 168 156 149
Vertex Pharmaceuticals Inc. 272 215 198 191 168
Operating Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences 220 186 186 213 225
Operating Cycle, Industry
Health Care 73 71 71 75 73

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 154 + 64 = 218

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Johnson & Johnson operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Payables Payment Period

Johnson & Johnson, average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Selected Financial Data
Payables turnover 2.76 2.66 2.70 2.99 3.23
Short-term Activity Ratio (no. days)
Average payables payment period1 132 137 135 122 113
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
AbbVie Inc. 66 61 60 54 71
Amgen Inc. 69 90 77 84 115
Bristol-Myers Squibb Co. 111 109 108 84 110
Eli Lilly & Co. 134 106 83 107 109
Gilead Sciences Inc. 31 58 39 67 56
Merck & Co. Inc. 89 89 123 108 97
Pfizer Inc. 98 72 66 181 151
Regeneron Pharmaceuticals Inc. 122 138 84 155 195
Thermo Fisher Scientific Inc. 41 48 53 49 49
Vertex Pharmaceuticals Inc. 106 103 79 77 58
Average Payables Payment Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 87 87 87 96 99
Average Payables Payment Period, Industry
Health Care 47 49 48 49 45

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.76 = 132

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Johnson & Johnson number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Cash Conversion Cycle

Johnson & Johnson, cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Selected Financial Data
Average inventory processing period 154 147 127 120 119
Average receivable collection period 64 62 59 60 64
Average payables payment period 132 137 135 122 113
Short-term Activity Ratio
Cash conversion cycle1 86 72 51 58 70
Benchmarks
Cash Conversion Cycle, Competitors2
AbbVie Inc. 82 85 70 95 78
Amgen Inc. 441 273 228 215 252
Bristol-Myers Squibb Co. 54 42 34 44 178
Eli Lilly & Co. 261 219 197 245 212
Gilead Sciences Inc. 132 104 111 140 75
Merck & Co. Inc. 118 93 105 101 111
Pfizer Inc. 121 63 93 226 207
Regeneron Pharmaceuticals Inc. 555 584 345 647 590
Thermo Fisher Scientific Inc. 101 97 115 107 100
Vertex Pharmaceuticals Inc. 166 112 119 114 110
Cash Conversion Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences 133 99 99 117 126
Cash Conversion Cycle, Industry
Health Care 26 22 23 26 28

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 154 + 64132 = 86

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Johnson & Johnson cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023.