Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

$24.99

Debt to Equity
since 2005

Microsoft Excel

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Calculation

Johnson & Johnson, debt to equity, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-29), 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), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-28), 10-K (reporting date: 2013-12-29), 10-K (reporting date: 2012-12-30), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-28), 10-K (reporting date: 2007-12-30), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions

The analysis of the financial data reveals several notable trends in the company's capital structure and leverage over the examined period.

Total Debt
Total debt exhibited a generally increasing trajectory from 2005 to 2024, starting at 2,685 million USD in 2005 and rising substantially to 36,634 million USD by the end of 2024. The debt levels showed marked growth during the periods 2005 to 2011 and 2014 to 2017, with some fluctuations thereafter. Notably, there was a peak in 2017 at 34,581 million USD followed by a decline in subsequent years, before increasing again in the final recorded year.
Shareholders’ Equity
Shareholders’ equity also grew over the period, beginning at 37,871 million USD in 2005 and reaching 71,490 million USD in 2024. Despite this overall upward movement, there were intermittent periods of decline or stagnation, particularly between 2013 and 2017, before equity rebounded in later years. The equity generally maintained a higher absolute level when compared to total debt, indicating a strong equity base throughout the timeframe.
Debt to Equity Ratio
The debt to equity ratio demonstrated an increasing trend from 0.07 in 2005 to peaks above 0.5 in certain years, indicating a gradual rise in financial leverage over the period. The ratio peaked at 0.57 in 2016, suggesting a higher proportion of debt relative to equity at that point. Following this peak, the leverage fluctuated around the mid-0.4 to 0.5 range, reflecting a moderately leveraged capital structure with some variances. The ratio ending at 0.51 in 2024 signifies that debt represented slightly over half of the equity level in financial terms.

Overall, the company has steadily increased both its debt and equity capital, with debt growing at a slightly faster pace in certain intervals. The leverage ratio indicates a moderate increase in reliance on debt financing, which may reflect strategic capital management decisions and responses to market or operational conditions over time. The balance between equity and debt suggests a sustained capacity to manage financial obligations, though the upward trend in debt usage warrants ongoing monitoring in light of potential financial risks.


Comparison to Competitors

Johnson & Johnson, debt to equity, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-29), 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), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-28), 10-K (reporting date: 2013-12-29), 10-K (reporting date: 2012-12-30), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-28), 10-K (reporting date: 2007-12-30), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)

Johnson & Johnson, debt to equity, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-29), 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), 10-K (reporting date: 2018-12-30), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-28), 10-K (reporting date: 2013-12-29), 10-K (reporting date: 2012-12-30), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-28), 10-K (reporting date: 2007-12-30), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Industry (Health Care)