Johnson & Johnson (NYSE:JNJ)

The composition of liabilities and shareholders’ equity exhibited several notable shifts over the observed period, spanning from April 2021 to December 2025. Overall, total liabilities generally remained relatively stable, fluctuating between approximately 57% and 64% of the total, while shareholders’ equity comprised the remaining portion. However, within these broad categories, specific line items demonstrated more pronounced trends.

Short-Term Debt & Payables

Current liabilities, representing a significant portion of total liabilities, initially decreased from 23.72% in April 2021 to 21.95% in July 2021, before generally increasing to a peak of 30.81% in April 2022. This increase was driven by rises in accounts payable and accrued rebates, returns and promotions. A subsequent decline was observed through late 2023, followed by a slight increase in early 2024, and a final decrease through December 2024. Loans and notes payable remained relatively low, with a substantial increase to 6.82% in December 2021, peaking at 9.17% in April 2022, before declining significantly to 4.26% by December 2023 and fluctuating around 3-4% thereafter.

Accrued Liabilities

Accrued liabilities showed a fluctuating pattern, initially decreasing from 7.66% to 5.94% between April and July 2021, then increasing again before stabilizing around 6-7% through much of 2022. A notable decrease was observed in late 2023 and early 2024, falling to a low of 3.83% in June 2025. Accrued compensation and employee related obligations followed a similar pattern, with increases in the earlier periods and a decline towards the end of the observation window. Accrued taxes on income demonstrated more volatility, with a peak in April 2023 (2.18%) and a low in June 2025 (0.86%).

Long-Term Obligations

Long-term debt, excluding the current portion, generally decreased from 17.54% in April 2021 to 14.35% in December 2022, before increasing again to 19.80% in March 2025. Deferred taxes on income exhibited a decreasing trend from 3.77% to 1.25% over the period. Long-term taxes payable also showed a consistent decline, falling from 3.81% to 0.24% by December 2025. Employee related obligations decreased from 6.09% to 3.49% over the same period.

Shareholders’ Equity

Total shareholders’ equity demonstrated a fluctuating pattern, initially increasing from 38.15% to 42.96% between April 2021 and July 2022, then decreasing to 36.16% in April 2023. A subsequent recovery was observed, reaching 41.12% in September 2025. Within shareholders’ equity, retained earnings and additional paid-in capital constituted the largest component, generally fluctuating between 67% and 92% of total equity. Common stock held in treasury exhibited a significant negative balance, decreasing from -22.29% to -37.96% over the period, indicating substantial share repurchase activity. Accumulated other comprehensive loss remained consistently negative, ranging from -6.85% to -8.88%.

The observed trends suggest a dynamic balance sheet management strategy, with adjustments made to both short-term and long-term liabilities. The significant share repurchase program, as evidenced by the increasing negative balance in common stock held in treasury, appears to have been a key component of capital allocation. Fluctuations in accrued liabilities likely reflect normal business cycle variations and timing differences in expense recognition.