Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Johnson & Johnson, liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
- Current Ratio Trends
- The current ratio exhibits moderate fluctuations throughout the periods analyzed. Initially, it decreased from 1.31 in March 2020 to a low of 1.21 by December 2020. Subsequently, the ratio improved, reaching a peak of 1.43 in October 2022. However, a notable decline followed, dropping to a low of 0.99 in December 2022, which indicates a reduction in short-term liquidity. From early 2023 to mid-2025, the current ratio generally stabilized around the range of 1.0 to 1.26, with minor fluctuations, suggesting a relatively consistent ability to cover current liabilities with current assets during this later period.
- Quick Ratio Trends
- The quick ratio displays similar variability to the current ratio but at a generally lower level, reflecting more conservative liquidity perspectives by excluding inventory. Starting at 0.98 in March 2020, it dipped to 0.91 by December 2020, then improved to 1.10 in October 2022. A sharp drop occurred in December 2022 to 0.71, paralleling the fall observed in the current ratio. Thereafter, the quick ratio exhibited further decline, falling to its lower bound of 0.68 by June 2024. These decreasing levels in recent periods suggest a weakening in the most liquid assets available to cover short-term obligations.
- Cash Ratio Trends
- The cash ratio shows the most pronounced volatility and consistently lower values compared to the current and quick ratios. Beginning at 0.54 in March 2020, it increased to a peak of 0.79 by September 2020, then generally trended downward from that point. A significant drop is observed in December 2022, where the ratio falls to 0.42, indicating a decline in cash and cash equivalents relative to current liabilities. Subsequent values remain relatively low, hovering mostly between 0.35 and 0.54, with a brief increase to 0.68 in June 2025. This pattern signals a cautious cash position, potentially reflecting strategic liquidity management or capital allocation decisions that limit immediate cash reserves.
- Overall Observations
- The liquidity ratios collectively suggest a period of initial stability followed by fluctuations indicating varying short-term financial strength. The notable decline in all three ratios around late 2022 points to reduced liquidity during that period, which may warrant further investigation. Post-2022, the ratios do not fully recover to prior peak levels, with the cash ratio showing the most constrained position. This trend may reflect either shifts in working capital composition or broader strategic adjustments affecting liquid asset holdings and current liability management.
Current Ratio
Johnson & Johnson, current ratio calculation (quarterly data)
| Jun 29, 2025 | Mar 30, 2025 | Dec 29, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit a fluctuating pattern over the periods. Initially, there is a steady increase from 44,226 million USD in March 2020 to a peak of 65,236 million USD in October 2022. This is followed by a notable decline to 55,294 million USD in December 2022. Afterward, current assets show some recovery and fluctuation, reaching a new peak of 71,551 million USD in June 2025 before dropping again to 54,498 million USD in the last reported period of June 2025. Overall, despite the volatility, the general trend appears to lean toward growth with intermittent declines.
- Current Liabilities
- Current liabilities generally increase over the timeline, starting at 33,689 million USD in March 2020 and rising to 56,903 million USD in June 2025. The growth is relatively consistent with some acceleration notable after mid-2022, coinciding with the period when current assets saw some decreases and recoveries. Spikes in liabilities occur particularly in late 2022 and onward, implying increased short-term obligations or operational funding needs within those quarters.
- Current Ratio
- The current ratio, representing liquidity, shows variability with values ranging from 0.99 to 1.48. Early periods show moderate ratios above 1, indicating adequate short-term liquidity. However, a sharp decline to below 1 (0.99) happens in December 2022, marking a potential liquidity concern. Following this dip, the ratio recovers slightly but remains around 1 or slightly above in subsequent quarters, indicating a tightening liquidity position. The ratio peaks early on in September 2020 at 1.48, then stabilizes at lower levels in recent periods, reflecting that increases in liabilities may be outpacing asset growth in the short term.
Quick Ratio
Johnson & Johnson, quick ratio calculation (quarterly data)
| Jun 29, 2025 | Mar 30, 2025 | Dec 29, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||
| Restricted cash | |||||||||||||||||||||||||||||
| Marketable securities | |||||||||||||||||||||||||||||
| Accounts receivable, trade, less allowances | |||||||||||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibit a fluctuating trend over the periods analyzed. Initially, values increased from approximately 32,898 million USD to a peak of around 49,969 million USD in October 2022. Following this high point, there is a general decline to about 36,726 million USD by June 2025, with some intermittent rises, indicating variability in liquid asset availability.
- Current Liabilities
- Current liabilities show a generally increasing trend throughout the observed quarters. Starting near 33,689 million USD, these liabilities rose steadily to a maximum of approximately 60,373 million USD by April 2023. Post this peak, liabilities decrease slightly but remain elevated around 54,180 million USD by June 2025, reflecting sustained high obligations within the current period.
- Quick Ratio
- The quick ratio, a measure of the company's short-term liquidity, initially hovers near parity, with values between 0.91 and 1.17 from March 2020 to December 2021, indicating relatively stable liquidity. However, starting December 2022, the ratio declines notably, bottoming out at around 0.68 by June 2025. This decreasing trend suggests a worsening liquidity position, where quick assets increasingly fall short relative to current liabilities.
- Overall Financial Insights
- Despite initial growth in quick assets, the concurrent and more pronounced increase in current liabilities constrains liquidity, as reflected in the declining quick ratio over time. The peak in quick assets in late 2022 is offset by a peak in liabilities shortly thereafter, with liabilities remaining elevated beyond the period's midpoint. The quick ratio's downward trajectory highlights growing short-term financial pressure and a potential need for improved working capital management.
Cash Ratio
Johnson & Johnson, cash ratio calculation (quarterly data)
| Jun 29, 2025 | Mar 30, 2025 | Dec 29, 2024 | Sep 29, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Oct 1, 2023 | Jul 2, 2023 | Apr 2, 2023 | Dec 31, 2022 | Oct 2, 2022 | Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||
| Restricted cash | |||||||||||||||||||||||||||||
| Marketable securities | |||||||||||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| AbbVie Inc. | |||||||||||||||||||||||||||||
| Amgen Inc. | |||||||||||||||||||||||||||||
| Bristol-Myers Squibb Co. | |||||||||||||||||||||||||||||
| Danaher Corp. | |||||||||||||||||||||||||||||
| Eli Lilly & Co. | |||||||||||||||||||||||||||||
| Gilead Sciences Inc. | |||||||||||||||||||||||||||||
| Merck & Co. Inc. | |||||||||||||||||||||||||||||
| Pfizer Inc. | |||||||||||||||||||||||||||||
| Regeneron Pharmaceuticals Inc. | |||||||||||||||||||||||||||||
| Thermo Fisher Scientific Inc. | |||||||||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-06-29), 10-Q (reporting date: 2025-03-30), 10-K (reporting date: 2024-12-29), 10-Q (reporting date: 2024-09-29), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
-
Total cash assets exhibited considerable fluctuations over the observed quarters. Initially, there was a moderate increase from about 18,000 million USD to over 31,000 million USD by the fourth quarter of 2020. Following this peak, a general downward trend ensued with intermittent rises, reaching another substantial increase around the third quarter of 2022 close to 34,000 million USD. However, the subsequent periods experienced declines with notable volatility, culminating in a sharp increase approaching 39,000 million USD in mid-2025, followed by a steep fall to approximately 19,000 million USD at the final observed period. The asset levels lacked consistency, showing cyclical peaks and troughs rather than a steady trend.
- Current Liabilities
-
Current liabilities displayed a rising trend across the timeline, starting near 33,700 million USD and increasing nearly continuously to a peak above 60,000 million USD by the early part of 2023. After this peak, liabilities slightly declined and then showed a renewed upward trajectory, reaching highs around 57,000 million USD toward mid-2025. The general pattern indicates an expansion in short-term obligations, which may suggest increased operational scale, rising short-term debt, or other liability increases over time.
- Cash Ratio
-
The cash ratio, representing the liquidity position relative to current liabilities, initially improved from 0.54 to a peak of approximately 0.79 during late 2020, reflecting enhanced liquidity coverage. Subsequently, it stabilized around the 0.7 range for several quarters but then experienced a marked decline from early 2022 onward, dipping as low as 0.35 by mid-2025. This downward trend indicates decreasing liquidity relative to the growing current liabilities, possibly reflecting higher leverage or lower cash reserves relative to short-term obligations. The declining cash ratio may raise concerns about the ability to meet immediate liabilities from cash assets alone.