Johnson & Johnson, balance sheet: debt

US$ in millions

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Loans and notes payable	5,983)	3,451)	12,771)	3,766)	2,631)
Long-term debt, excluding current portion	30,651)	25,881)	26,888)	29,985)	32,635)
Total borrowings (carrying amount)	36,634)	29,332)	39,659)	33,751)	35,266)

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Debt item	Description	The company
Total borrowings (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Johnson & Johnson total debt decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

	Dec 29, 2024
Selected Financial Data (US$ in millions)
Short-term borrowings	4,234)
Long-term debt, including current portion	30,400)
Total borrowings (fair value)	34,634)
Financial Ratio
Debt, fair value to carrying amount ratio	0.95

Weighted average effective rate on borrowings: 3.48%

Interest rate	Debt amount¹	Interest rate × Debt amount
4.46%	4,100)	183)
3.36%	32,400)	1,089)
Total	36,500)	1,272)
3.48%

¹ US$ in millions

² Weighted-average interest rate = 100 × 1,272 ÷ 36,500 = 3.48%

Johnson & Johnson, interest costs incurred

US$ in millions

12 months ended:	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Interest expense, net of portion capitalized	755)	772)	276)	183)	201)
Interest expense capitalized	79)	70)	49)	49)	63)
Interest costs incurred	834)	842)	325)	232)	264)

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Debt item	Description	The company
Interest expense, net of portion capitalized	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Johnson & Johnson interest expense, net of portion capitalized increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Interest expense capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Johnson & Johnson interest expense capitalized increased from 2022 to 2023 and from 2023 to 2024.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Johnson & Johnson interest costs incurred increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Net earnings	14,066)	35,153)	17,941)	20,878)	14,714)
Less: Net earnings from discontinued operations, net of tax	—)	21,827)	—)	—)	—)
Add: Income tax expense	2,621)	1,736)	3,784)	1,898)	1,783)
Add: Interest expense, net of portion capitalized	755)	772)	276)	183)	201)
Earnings before interest and tax (EBIT)	17,442)	15,834)	22,001)	22,959)	16,698)

Interest costs incurred	834)	842)	325)	232)	264)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	23.10	20.51	79.71	125.46	83.07
Adjusted interest coverage ratio (with capitalized interest)²	20.91	18.81	67.70	98.96	63.25

2024 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of portion capitalized
= 17,442 ÷ 755 = 23.10

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 17,442 ÷ 834 = 20.91

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Johnson & Johnson adjusted interest coverage ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Johnson & Johnson (NYSE:JNJ)

Analysis of Debt