Johnson & Johnson, balance sheet: debt

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
Loans and notes payable	3,451)	12,771)	3,766)	2,631)	1,202)
Long-term debt, excluding current portion	25,881)	26,888)	29,985)	32,635)	26,494)
Total borrowings (carrying amount)	29,332)	39,659)	33,751)	35,266)	27,696)

Download chart

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 increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

	Dec 31, 2023
Selected Financial Data (US$ in millions)
Short-term borrowings	1,982)
Long-term debt, including current portion	26,350)
Total borrowings (fair value)	28,332)
Financial Ratio
Debt, fair value to carrying amount ratio	0.97

Weighted average effective rate on borrowings: 3.14%

Interest rate	Debt amount¹	Interest rate × Debt amount
5.37%	1,982)	106)
2.98%	27,350)	815)
Total	29,332)	921)
3.14%

¹ US$ in millions

² Weighted-average interest rate = 100 × 921 ÷ 29,332 = 3.14%

Johnson & Johnson, interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
Interest expense, net of portion capitalized	772)	276)	183)	201)	318)
Interest expense capitalized	70)	49)	49)	63)	70)
Interest costs incurred	842)	325)	232)	264)	388)

Download chart

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 2021 to 2022 and from 2022 to 2023.
Interest expense capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Johnson & Johnson interest costs incurred increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
Selected Financial Data (US$ in millions)
Net earnings	35,153)	17,941)	20,878)	14,714)	15,119)
Less: Net earnings from discontinued operations, net of tax	21,827)	—)	—)	—)	—)
Add: Income tax expense	1,736)	3,784)	1,898)	1,783)	2,209)
Add: Interest expense, net of portion capitalized	772)	276)	183)	201)	318)
Earnings before interest and tax (EBIT)	15,834)	22,001)	22,959)	16,698)	17,646)

Interest costs incurred	842)	325)	232)	264)	388)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	20.51	79.71	125.46	83.07	55.49
Adjusted interest coverage ratio (with capitalized interest)²	18.81	67.70	98.96	63.25	45.48

2023 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of portion capitalized
= 15,834 ÷ 772 = 20.51

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 15,834 ÷ 842 = 18.81

Download chart

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 2021 to 2022 and from 2022 to 2023.

Johnson & Johnson (NYSE:JNJ)

Analysis of Debt