Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Johnson & Johnson, solvency ratios
Based on: 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Johnson & Johnson debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Johnson & Johnson debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Johnson & Johnson debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Johnson & Johnson debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Johnson & Johnson debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Johnson & Johnson debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Johnson & Johnson financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Johnson & Johnson interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Johnson & Johnson fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity
Johnson & Johnson, debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Loans and notes payable | 3,766 | 2,631 | 1,202 | 2,796 | 3,906 | |
| Long-term debt, excluding current portion | 29,985 | 32,635 | 26,494 | 27,684 | 30,675 | |
| Total debt | 33,751 | 35,266 | 27,696 | 30,480 | 34,581 | |
| Shareholders’ equity | 74,023 | 63,278 | 59,471 | 59,752 | 60,160 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.46 | 0.56 | 0.47 | 0.51 | 0.57 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | 4.98 | 6.58 | — | — | 7.33 | |
| Amgen Inc. | 4.97 | 3.51 | 3.09 | 2.71 | 1.40 | |
| Eli Lilly & Co. | 1.88 | 2.94 | 5.88 | 1.30 | 1.18 | |
| Gilead Sciences Inc. | 1.27 | 1.73 | 1.09 | 1.28 | 1.64 | |
| Merck & Co. Inc. | 0.87 | 1.26 | 1.02 | 0.94 | 0.71 | |
| Moderna Inc. | 0.05 | 0.05 | 0.03 | 0.03 | — | |
| Pfizer Inc. | 0.50 | 0.63 | 0.83 | 0.66 | 0.61 | |
| Regeneron Pharmaceuticals Inc. | 0.14 | 0.24 | 0.06 | 0.08 | 0.11 | |
| Thermo Fisher Scientific Inc. | 0.85 | 0.63 | 0.60 | 0.69 | 0.83 | |
| Zoetis Inc. | 1.45 | 1.91 | 2.38 | 2.95 | 2.80 | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.95 | 1.22 | 1.22 | 1.06 | 0.95 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.84 | 0.99 | 1.00 | 0.94 | 0.89 | |
Based on: 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).
1 2021 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 33,751 ÷ 74,023 = 0.46
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Johnson & Johnson debt to equity ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Equity (including Operating Lease Liability)
Johnson & Johnson, debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Loans and notes payable | 3,766 | 2,631 | 1,202 | 2,796 | 3,906 | |
| Long-term debt, excluding current portion | 29,985 | 32,635 | 26,494 | 27,684 | 30,675 | |
| Total debt | 33,751 | 35,266 | 27,696 | 30,480 | 34,581 | |
| Operating lease liability | 1,000 | 1,100 | 985 | — | — | |
| Total debt (including operating lease liability) | 34,751 | 36,366 | 28,681 | 30,480 | 34,581 | |
| Shareholders’ equity | 74,023 | 63,278 | 59,471 | 59,752 | 60,160 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.47 | 0.57 | 0.48 | 0.51 | 0.57 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 5.03 | 6.66 | — | — | 7.33 | |
| Amgen Inc. | 5.07 | 3.55 | 3.15 | 2.71 | 1.40 | |
| Eli Lilly & Co. | 1.96 | 3.06 | 6.11 | 1.30 | 1.18 | |
| Gilead Sciences Inc. | 1.30 | 1.76 | 1.12 | 1.28 | 1.64 | |
| Merck & Co. Inc. | 0.91 | 1.32 | 1.06 | 0.94 | 0.71 | |
| Moderna Inc. | 0.06 | 0.09 | 0.12 | 0.03 | — | |
| Pfizer Inc. | 0.54 | 0.65 | 0.85 | 0.66 | 0.61 | |
| Thermo Fisher Scientific Inc. | 0.89 | 0.65 | 0.62 | 0.69 | 0.83 | |
| Zoetis Inc. | 1.49 | 1.96 | 2.45 | 2.95 | 2.80 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.98 | 1.26 | 1.25 | 1.06 | 0.95 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.90 | 1.05 | 1.06 | 0.94 | 0.89 | |
Based on: 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).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 34,751 ÷ 74,023 = 0.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Johnson & Johnson debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Capital
Johnson & Johnson, debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Loans and notes payable | 3,766 | 2,631 | 1,202 | 2,796 | 3,906 | |
| Long-term debt, excluding current portion | 29,985 | 32,635 | 26,494 | 27,684 | 30,675 | |
| Total debt | 33,751 | 35,266 | 27,696 | 30,480 | 34,581 | |
| Shareholders’ equity | 74,023 | 63,278 | 59,471 | 59,752 | 60,160 | |
| Total capital | 107,774 | 98,544 | 87,167 | 90,232 | 94,741 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.31 | 0.36 | 0.32 | 0.34 | 0.37 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 0.83 | 0.87 | 1.14 | 1.27 | 0.88 | |
| Amgen Inc. | 0.83 | 0.78 | 0.76 | 0.73 | 0.58 | |
| Eli Lilly & Co. | 0.65 | 0.75 | 0.85 | 0.57 | 0.54 | |
| Gilead Sciences Inc. | 0.56 | 0.63 | 0.52 | 0.56 | 0.62 | |
| Merck & Co. Inc. | 0.46 | 0.56 | 0.50 | 0.48 | 0.42 | |
| Moderna Inc. | 0.05 | 0.05 | 0.03 | 0.03 | — | |
| Pfizer Inc. | 0.33 | 0.39 | 0.45 | 0.40 | 0.38 | |
| Regeneron Pharmaceuticals Inc. | 0.13 | 0.20 | 0.06 | 0.07 | 0.10 | |
| Thermo Fisher Scientific Inc. | 0.46 | 0.39 | 0.37 | 0.41 | 0.45 | |
| Zoetis Inc. | 0.59 | 0.66 | 0.70 | 0.75 | 0.74 | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.49 | 0.55 | 0.55 | 0.51 | 0.49 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.46 | 0.50 | 0.50 | 0.49 | 0.47 | |
Based on: 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).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 33,751 ÷ 107,774 = 0.31
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Johnson & Johnson debt to capital ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Capital (including Operating Lease Liability)
Johnson & Johnson, debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Loans and notes payable | 3,766 | 2,631 | 1,202 | 2,796 | 3,906 | |
| Long-term debt, excluding current portion | 29,985 | 32,635 | 26,494 | 27,684 | 30,675 | |
| Total debt | 33,751 | 35,266 | 27,696 | 30,480 | 34,581 | |
| Operating lease liability | 1,000 | 1,100 | 985 | — | — | |
| Total debt (including operating lease liability) | 34,751 | 36,366 | 28,681 | 30,480 | 34,581 | |
| Shareholders’ equity | 74,023 | 63,278 | 59,471 | 59,752 | 60,160 | |
| Total capital (including operating lease liability) | 108,774 | 99,644 | 88,152 | 90,232 | 94,741 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.32 | 0.36 | 0.33 | 0.34 | 0.37 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.83 | 0.87 | 1.14 | 1.27 | 0.88 | |
| Amgen Inc. | 0.84 | 0.78 | 0.76 | 0.73 | 0.58 | |
| Eli Lilly & Co. | 0.66 | 0.75 | 0.86 | 0.57 | 0.54 | |
| Gilead Sciences Inc. | 0.56 | 0.64 | 0.53 | 0.56 | 0.62 | |
| Merck & Co. Inc. | 0.48 | 0.57 | 0.51 | 0.48 | 0.42 | |
| Moderna Inc. | 0.06 | 0.08 | 0.10 | 0.03 | — | |
| Pfizer Inc. | 0.35 | 0.39 | 0.46 | 0.40 | 0.38 | |
| Thermo Fisher Scientific Inc. | 0.47 | 0.40 | 0.38 | 0.41 | 0.45 | |
| Zoetis Inc. | 0.60 | 0.66 | 0.71 | 0.75 | 0.74 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.50 | 0.56 | 0.56 | 0.51 | 0.49 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.47 | 0.51 | 0.52 | 0.49 | 0.47 | |
Based on: 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).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 34,751 ÷ 108,774 = 0.32
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Johnson & Johnson debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Assets
Johnson & Johnson, debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Loans and notes payable | 3,766 | 2,631 | 1,202 | 2,796 | 3,906 | |
| Long-term debt, excluding current portion | 29,985 | 32,635 | 26,494 | 27,684 | 30,675 | |
| Total debt | 33,751 | 35,266 | 27,696 | 30,480 | 34,581 | |
| Total assets | 182,018 | 174,894 | 157,728 | 152,954 | 157,303 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.19 | 0.20 | 0.18 | 0.20 | 0.22 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.52 | 0.57 | 0.75 | 0.68 | 0.53 | |
| Amgen Inc. | 0.54 | 0.52 | 0.50 | 0.51 | 0.44 | |
| Eli Lilly & Co. | 0.35 | 0.36 | 0.39 | 0.29 | 0.30 | |
| Gilead Sciences Inc. | 0.39 | 0.46 | 0.40 | 0.43 | 0.48 | |
| Merck & Co. Inc. | 0.31 | 0.35 | 0.31 | 0.30 | 0.28 | |
| Moderna Inc. | 0.03 | 0.02 | 0.02 | 0.02 | — | |
| Pfizer Inc. | 0.21 | 0.26 | 0.31 | 0.26 | 0.25 | |
| Regeneron Pharmaceuticals Inc. | 0.11 | 0.16 | 0.05 | 0.06 | 0.08 | |
| Thermo Fisher Scientific Inc. | 0.37 | 0.31 | 0.30 | 0.34 | 0.37 | |
| Zoetis Inc. | 0.47 | 0.53 | 0.56 | 0.60 | 0.58 | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.32 | 0.36 | 0.36 | 0.34 | 0.33 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.30 | 0.33 | 0.33 | 0.33 | 0.32 | |
Based on: 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).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 33,751 ÷ 182,018 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Johnson & Johnson debt to assets ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Debt to Assets (including Operating Lease Liability)
Johnson & Johnson, debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Loans and notes payable | 3,766 | 2,631 | 1,202 | 2,796 | 3,906 | |
| Long-term debt, excluding current portion | 29,985 | 32,635 | 26,494 | 27,684 | 30,675 | |
| Total debt | 33,751 | 35,266 | 27,696 | 30,480 | 34,581 | |
| Operating lease liability | 1,000 | 1,100 | 985 | — | — | |
| Total debt (including operating lease liability) | 34,751 | 36,366 | 28,681 | 30,480 | 34,581 | |
| Total assets | 182,018 | 174,894 | 157,728 | 152,954 | 157,303 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.19 | 0.21 | 0.18 | 0.20 | 0.22 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.53 | 0.58 | 0.75 | 0.68 | 0.53 | |
| Amgen Inc. | 0.56 | 0.53 | 0.51 | 0.51 | 0.44 | |
| Eli Lilly & Co. | 0.36 | 0.37 | 0.41 | 0.29 | 0.30 | |
| Gilead Sciences Inc. | 0.40 | 0.47 | 0.41 | 0.43 | 0.48 | |
| Merck & Co. Inc. | 0.33 | 0.37 | 0.32 | 0.30 | 0.28 | |
| Moderna Inc. | 0.04 | 0.03 | 0.09 | 0.02 | — | |
| Pfizer Inc. | 0.23 | 0.27 | 0.32 | 0.26 | 0.25 | |
| Thermo Fisher Scientific Inc. | 0.38 | 0.33 | 0.32 | 0.34 | 0.37 | |
| Zoetis Inc. | 0.49 | 0.54 | 0.58 | 0.60 | 0.58 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.33 | 0.37 | 0.37 | 0.34 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.32 | 0.35 | 0.36 | 0.33 | 0.32 | |
Based on: 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).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 34,751 ÷ 182,018 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Johnson & Johnson debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Financial Leverage
Johnson & Johnson, financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 182,018 | 174,894 | 157,728 | 152,954 | 157,303 | |
| Shareholders’ equity | 74,023 | 63,278 | 59,471 | 59,752 | 60,160 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.46 | 2.76 | 2.65 | 2.56 | 2.61 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | 9.51 | 11.51 | — | — | 13.89 | |
| Amgen Inc. | 9.13 | 6.69 | 6.17 | 5.31 | 3.17 | |
| Eli Lilly & Co. | 5.44 | 8.27 | 15.07 | 4.47 | 3.88 | |
| Gilead Sciences Inc. | 3.23 | 3.76 | 2.74 | 2.98 | 3.44 | |
| Merck & Co. Inc. | 2.77 | 3.62 | 3.26 | 3.09 | 2.56 | |
| Moderna Inc. | 1.74 | 2.86 | 1.35 | 1.28 | — | |
| Pfizer Inc. | 2.35 | 2.44 | 2.65 | 2.51 | 2.41 | |
| Regeneron Pharmaceuticals Inc. | 1.36 | 1.56 | 1.34 | 1.34 | 1.43 | |
| Thermo Fisher Scientific Inc. | 2.33 | 2.00 | 1.97 | 2.04 | 2.23 | |
| Zoetis Inc. | 3.06 | 3.61 | 4.26 | 4.93 | 4.85 | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.98 | 3.43 | 3.39 | 3.15 | 2.89 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.81 | 3.02 | 2.98 | 2.89 | 2.76 | |
Based on: 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).
1 2021 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 182,018 ÷ 74,023 = 2.46
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Johnson & Johnson financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Interest Coverage
Johnson & Johnson, interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 20,878 | 14,714 | 15,119 | 15,297 | 1,300 | |
| Add: Income tax expense | 1,898 | 1,783 | 2,209 | 2,702 | 16,373 | |
| Add: Interest expense, net of portion capitalized | 183 | 201 | 318 | 1,005 | 934 | |
| Earnings before interest and tax (EBIT) | 22,959 | 16,698 | 17,646 | 19,004 | 18,607 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 125.46 | 83.07 | 55.49 | 18.91 | 19.92 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 6.36 | 2.38 | 5.72 | 4.86 | 7.72 | |
| Amgen Inc. | 6.60 | 7.44 | 8.09 | 7.86 | 8.36 | |
| Eli Lilly & Co. | 19.12 | 21.11 | 14.15 | 14.95 | 10.77 | |
| Gilead Sciences Inc. | 9.27 | 2.70 | 6.19 | 8.24 | 13.10 | |
| Merck & Co. Inc. | 18.22 | 11.58 | 13.84 | 12.27 | 9.65 | |
| Moderna Inc. | 739.06 | -74.31 | -76.85 | -123.16 | — | |
| Pfizer Inc. | 19.83 | 6.17 | 12.23 | 10.03 | 10.69 | |
| Regeneron Pharmaceuticals Inc. | 163.75 | 67.97 | 81.43 | 91.55 | 83.75 | |
| Thermo Fisher Scientific Inc. | 17.49 | 14.07 | 7.02 | 5.89 | 5.10 | |
| Zoetis Inc. | 12.11 | 9.64 | 9.08 | 9.20 | 9.71 | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 16.98 | 8.81 | 11.04 | 9.91 | 11.01 | |
| Interest Coverage, Industry | ||||||
| Health Care | 12.77 | 7.19 | 8.61 | 8.05 | 9.38 | |
Based on: 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).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 22,959 ÷ 183 = 125.46
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Johnson & Johnson interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Fixed Charge Coverage
Johnson & Johnson, fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | Dec 30, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 20,878 | 14,714 | 15,119 | 15,297 | 1,300 | |
| Add: Income tax expense | 1,898 | 1,783 | 2,209 | 2,702 | 16,373 | |
| Add: Interest expense, net of portion capitalized | 183 | 201 | 318 | 1,005 | 934 | |
| Earnings before interest and tax (EBIT) | 22,959 | 16,698 | 17,646 | 19,004 | 18,607 | |
| Add: Operating lease costs | 300 | 300 | 307 | 332 | 372 | |
| Earnings before fixed charges and tax | 23,259 | 16,998 | 17,953 | 19,336 | 18,979 | |
| Interest expense, net of portion capitalized | 183 | 201 | 318 | 1,005 | 934 | |
| Operating lease costs | 300 | 300 | 307 | 332 | 372 | |
| Fixed charges | 483 | 501 | 625 | 1,337 | 1,306 | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 48.16 | 33.93 | 28.72 | 14.46 | 14.53 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | 5.90 | 2.28 | 5.42 | 4.44 | 6.86 | |
| Amgen Inc. | 5.67 | 6.48 | 7.12 | 7.13 | 7.56 | |
| Eli Lilly & Co. | 13.33 | 15.06 | 10.18 | 8.66 | 5.89 | |
| Gilead Sciences Inc. | 8.15 | 2.45 | 5.46 | 7.58 | 12.26 | |
| Merck & Co. Inc. | 13.08 | 8.47 | 10.31 | 8.95 | 7.03 | |
| Moderna Inc. | 317.31 | -26.75 | -20.79 | -8.26 | — | |
| Pfizer Inc. | 14.22 | 4.98 | 9.88 | 8.34 | 8.76 | |
| Thermo Fisher Scientific Inc. | 12.19 | 10.30 | 5.61 | 4.72 | 4.07 | |
| Zoetis Inc. | 10.08 | 8.21 | 7.85 | 7.73 | 8.55 | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 13.44 | 7.24 | 9.08 | 8.20 | 9.02 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 9.00 | 5.32 | 6.42 | 6.17 | 6.96 | |
Based on: 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).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 23,259 ÷ 483 = 48.16
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Johnson & Johnson fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |