Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-K (reporting date: 2025-12-28), 10-Q (reporting date: 2025-09-28), 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).
The solvency position, as indicated by the provided ratios, exhibits fluctuating trends over the observed period. Generally, leverage ratios increased through the first half of 2023 before stabilizing and showing some moderation. However, the most recent quarters indicate a potential upward trend in certain leverage metrics. Interest coverage, while consistently high, demonstrates a significant decline in 2022 and early 2023, followed by a recovery, but remains lower than initial levels.
- Debt to Equity
- The debt to equity ratio generally remained below 0.5 until April 2023, when it rose to 0.75. It subsequently decreased to 0.42 by October 2023, before fluctuating between 0.48 and 0.67 over the following quarters. The latest reading, for June 2025, is 0.65, suggesting a moderate increase in reliance on equity financing relative to debt.
- Debt to Capital
- The debt to capital ratio remained relatively stable between 0.30 and 0.34 for most of the period examined. A peak of 0.43 was observed in April 2023, followed by a return to the lower end of the range. Recent quarters show a slight increase, reaching 0.39 in June 2025. This indicates a generally consistent capital structure with minor fluctuations.
- Debt to Assets
- The debt to assets ratio followed a similar pattern to debt to equity, increasing from 0.18 to 0.27 by April 2023, then decreasing to 0.18 by October 2023. It has since risen to 0.26 by June 2025. This suggests a moderate increase in the proportion of assets financed by debt.
- Financial Leverage
- Financial leverage, measured as total assets to equity, increased from 2.39 in April 2022 to 2.77 in April 2023. While it decreased to 2.33 by October 2023, it has generally trended upwards again, reaching 2.46 in March 2025 and 2.44 in June 2025. This indicates a growing reliance on financial leverage to amplify returns, though the increase has been modest in recent periods.
- Interest Coverage
- Interest coverage experienced a substantial decline from 164.15 in April 2022 to 79.71 in December 2022, and further to a low of 23.89 in July 2023. It has since recovered, reaching 33.48 in June 2025. Despite the recovery, the ratio remains significantly lower than its initial levels, indicating a reduced ability to cover interest expenses with earnings, although it remains at a healthy level overall.
In summary, the company’s solvency position has undergone changes over the analyzed period. While leverage ratios have generally increased, the interest coverage ratio, though recovering, remains below its historical highs. These trends warrant continued monitoring to assess potential risks associated with increased debt levels and their impact on earnings.
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Debt Ratios
Coverage Ratios
Debt to Equity
Johnson & Johnson, debt to equity calculation (quarterly data)
| Dec 28, 2025 | Sep 28, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Loans and notes payable | 8,495) | 6,387) | 11,526) | 13,897) | 5,983) | 4,462) | 9,855) | 8,550) | 3,451) | 3,870) | 11,701) | 17,979) | 12,771) | 4,424) | 4,305) | 4,297) | |||||
| Long-term debt, excluding current portion | 39,438) | 39,408) | 39,235) | 38,355) | 30,651) | 31,289) | 31,636) | 25,082) | 25,881) | 26,051) | 33,901) | 34,928) | 26,888) | 27,603) | 28,292) | 28,851) | |||||
| Total debt | 47,933) | 45,795) | 50,761) | 52,252) | 36,634) | 35,751) | 41,491) | 33,632) | 29,332) | 29,921) | 45,602) | 52,907) | 39,659) | 32,027) | 32,597) | 33,148) | |||||
| Total Johnson & Johnson shareholders’ equity | 81,544) | 79,277) | 78,473) | 78,109) | 71,490) | 70,158) | 71,538) | 70,020) | 68,774) | 71,228) | 75,149) | 70,869) | 76,804) | 74,599) | 76,357) | 74,709) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity1 | 0.59 | 0.58 | 0.65 | 0.67 | 0.51 | 0.51 | 0.58 | 0.48 | 0.43 | 0.42 | 0.61 | 0.75 | 0.52 | 0.43 | 0.43 | 0.44 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | — | — | — | 49.22 | 20.19 | 11.78 | 10.42 | 9.24 | 5.73 | 5.02 | 4.74 | 4.68 | 3.67 | 4.35 | 4.98 | 4.51 | |||||
| Amgen Inc. | 6.31 | 5.67 | 7.57 | 9.24 | 10.23 | 8.02 | 10.57 | 12.75 | 10.37 | 7.90 | 9.08 | 11.52 | 10.64 | 10.60 | 15.10 | 40.23 | |||||
| Bristol-Myers Squibb Co. | 2.44 | 2.64 | 2.82 | 2.86 | 3.04 | 2.90 | 3.08 | 3.38 | 1.35 | 1.30 | 1.18 | 1.19 | 1.27 | 1.20 | 1.29 | 1.42 | |||||
| Danaher Corp. | 0.35 | 0.33 | 0.33 | 0.32 | 0.32 | 0.34 | 0.34 | 0.34 | 0.34 | 0.42 | 0.38 | 0.39 | 0.39 | 0.41 | 0.43 | 0.47 | |||||
| Eli Lilly & Co. | 1.60 | 1.79 | 2.18 | 2.44 | 2.37 | 2.19 | 2.13 | 2.05 | 2.34 | 1.80 | 1.70 | 1.69 | 1.52 | 1.58 | 1.97 | 1.77 | |||||
| Gilead Sciences Inc. | 1.10 | 1.16 | 1.27 | 1.30 | 1.38 | 1.26 | 1.28 | 1.44 | 1.09 | 1.12 | 1.19 | 1.20 | 1.19 | 1.20 | 1.30 | 1.32 | |||||
| Merck & Co. Inc. | 0.94 | 0.80 | 0.72 | 0.72 | 0.80 | 0.86 | 0.87 | 0.85 | 0.93 | 0.85 | 0.95 | 0.66 | 0.67 | 0.68 | 0.73 | 0.78 | |||||
| Pfizer Inc. | 0.75 | 0.66 | 0.70 | 0.69 | 0.73 | 0.73 | 0.79 | 0.75 | 0.81 | 0.66 | 0.66 | 0.36 | 0.37 | 0.40 | 0.46 | 0.44 | |||||
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | |||||
| Thermo Fisher Scientific Inc. | 0.74 | 0.70 | 0.70 | 0.69 | 0.63 | 0.72 | 0.75 | 0.78 | 0.75 | 0.78 | 0.78 | 0.83 | 0.78 | 0.67 | 0.72 | 0.81 | |||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
Based on: 10-K (reporting date: 2025-12-28), 10-Q (reporting date: 2025-09-28), 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).
1 Q4 2025 Calculation
Debt to equity = Total debt ÷ Total Johnson & Johnson shareholders’ equity
= 47,933 ÷ 81,544 = 0.59
2 Click competitor name to see calculations.
The debt-to-equity ratio exhibits considerable fluctuation over the observed period. Initially, the ratio remained relatively stable, fluctuating between 0.43 and 0.44 from April 2022 to October 2022. A notable increase began in December 2022, peaking at 0.75 in April 2023, before declining to 0.61 in July 2023. Subsequent quarters saw a decrease to 0.42 in October 2023, followed by a slight increase to 0.43 in December 2023. The ratio then trended upwards again, reaching 0.58 in June 2024, and remaining around 0.51 to 0.67 through December 2024. The most recent measurements indicate a stabilization around 0.58 to 0.59 in September 2025 and December 2025.
- Initial Stability (Apr 2022 - Oct 2022)
- The debt-to-equity ratio demonstrated a consistent range between 0.43 and 0.44 during this period, suggesting a relatively balanced capital structure. Minimal change indicates a steady approach to financing.
- Significant Increase (Dec 2022 - Apr 2023)
- A substantial rise in the ratio from 0.52 in December 2022 to 0.75 in April 2023 indicates a significant increase in debt relative to equity. This could be attributed to increased borrowing, a decrease in equity, or a combination of both. The peak of 0.75 represents the highest ratio observed throughout the analyzed timeframe.
- Subsequent Fluctuations and Recent Stabilization (Jul 2023 - Dec 2025)
- Following the peak, the ratio experienced a decline, followed by a period of fluctuation. The ratio generally trended upwards from October 2023 to June 2024, then stabilized between 0.51 and 0.67. The final two measurements, September 2025 and December 2025, show a consistent ratio around 0.58 and 0.59, suggesting a potential stabilization of the capital structure after the earlier volatility.
- Overall Trend
- The overall trend reveals a shift towards increased leverage, particularly evident in the period between December 2022 and April 2023. While the ratio has since fluctuated, it generally remains higher than the initial levels observed in 2022, indicating a sustained, though recently stabilizing, change in the company’s financial structure.
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Debt to Capital
Johnson & Johnson, debt to capital calculation (quarterly data)
| Dec 28, 2025 | Sep 28, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Loans and notes payable | 8,495) | 6,387) | 11,526) | 13,897) | 5,983) | 4,462) | 9,855) | 8,550) | 3,451) | 3,870) | 11,701) | 17,979) | 12,771) | 4,424) | 4,305) | 4,297) | |||||
| Long-term debt, excluding current portion | 39,438) | 39,408) | 39,235) | 38,355) | 30,651) | 31,289) | 31,636) | 25,082) | 25,881) | 26,051) | 33,901) | 34,928) | 26,888) | 27,603) | 28,292) | 28,851) | |||||
| Total debt | 47,933) | 45,795) | 50,761) | 52,252) | 36,634) | 35,751) | 41,491) | 33,632) | 29,332) | 29,921) | 45,602) | 52,907) | 39,659) | 32,027) | 32,597) | 33,148) | |||||
| Total Johnson & Johnson shareholders’ equity | 81,544) | 79,277) | 78,473) | 78,109) | 71,490) | 70,158) | 71,538) | 70,020) | 68,774) | 71,228) | 75,149) | 70,869) | 76,804) | 74,599) | 76,357) | 74,709) | |||||
| Total capital | 129,477) | 125,072) | 129,234) | 130,361) | 108,124) | 105,909) | 113,029) | 103,652) | 98,106) | 101,149) | 120,751) | 123,776) | 116,463) | 106,626) | 108,954) | 107,857) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital1 | 0.37 | 0.37 | 0.39 | 0.40 | 0.34 | 0.34 | 0.37 | 0.32 | 0.30 | 0.30 | 0.38 | 0.43 | 0.34 | 0.30 | 0.30 | 0.31 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | 1.05 | 1.04 | 1.00 | 0.98 | 0.95 | 0.92 | 0.91 | 0.90 | 0.85 | 0.83 | 0.83 | 0.82 | 0.79 | 0.81 | 0.83 | 0.82 | |||||
| Amgen Inc. | 0.86 | 0.85 | 0.88 | 0.90 | 0.91 | 0.89 | 0.91 | 0.93 | 0.91 | 0.89 | 0.90 | 0.92 | 0.91 | 0.91 | 0.94 | 0.98 | |||||
| Bristol-Myers Squibb Co. | 0.71 | 0.73 | 0.74 | 0.74 | 0.75 | 0.74 | 0.75 | 0.77 | 0.57 | 0.56 | 0.54 | 0.54 | 0.56 | 0.54 | 0.56 | 0.59 | |||||
| Danaher Corp. | 0.26 | 0.25 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.30 | 0.28 | 0.28 | 0.28 | 0.29 | 0.30 | 0.32 | |||||
| Eli Lilly & Co. | 0.62 | 0.64 | 0.69 | 0.71 | 0.70 | 0.69 | 0.68 | 0.67 | 0.70 | 0.64 | 0.63 | 0.63 | 0.60 | 0.61 | 0.66 | 0.64 | |||||
| Gilead Sciences Inc. | 0.52 | 0.54 | 0.56 | 0.57 | 0.58 | 0.56 | 0.56 | 0.59 | 0.52 | 0.53 | 0.54 | 0.55 | 0.54 | 0.54 | 0.56 | 0.57 | |||||
| Merck & Co. Inc. | 0.48 | 0.44 | 0.42 | 0.42 | 0.44 | 0.46 | 0.46 | 0.46 | 0.48 | 0.46 | 0.49 | 0.40 | 0.40 | 0.41 | 0.42 | 0.44 | |||||
| Pfizer Inc. | 0.43 | 0.40 | 0.41 | 0.41 | 0.42 | 0.42 | 0.44 | 0.43 | 0.45 | 0.40 | 0.40 | 0.26 | 0.27 | 0.28 | 0.32 | 0.31 | |||||
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.12 | |||||
| Thermo Fisher Scientific Inc. | 0.42 | 0.41 | 0.41 | 0.41 | 0.39 | 0.42 | 0.43 | 0.44 | 0.43 | 0.44 | 0.44 | 0.45 | 0.44 | 0.40 | 0.42 | 0.45 | |||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
Based on: 10-K (reporting date: 2025-12-28), 10-Q (reporting date: 2025-09-28), 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).
1 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 47,933 ÷ 129,477 = 0.37
2 Click competitor name to see calculations.
The debt to capital ratio exhibits fluctuations over the observed period, generally indicating a changing reliance on debt financing relative to total capital. An initial period of stability is followed by a notable increase, then a subsequent decline, and a final period of relative stability with a slight upward trend.
- Initial Stability (Apr 3, 2022 – Oct 2, 2022)
- The debt to capital ratio remained consistent at approximately 0.30 for the first three quarters. This suggests a stable capital structure during this timeframe, with debt representing roughly 30% of total capital.
- Increase in Leverage (Dec 31, 2022 – Apr 2, 2023)
- A significant increase in the ratio is observed, rising from 0.34 in December 2022 to 0.43 in April 2023. This indicates a substantial increase in debt levels relative to capital, potentially due to new borrowing or a decrease in equity. The ratio then decreased to 0.38 in July 2023.
- Subsequent Decline (Jul 2, 2023 – Oct 1, 2023)
- The ratio decreased from 0.38 to 0.30 over the subsequent quarters. This suggests a reduction in debt or an increase in capital, leading to a more conservative capital structure. The ratio remained at 0.30 in the following quarter.
- Fluctuation and Recent Trend (Dec 31, 2023 – Dec 28, 2025)
- From December 2023 through September 2025, the ratio fluctuated between 0.34 and 0.40. The most recent two quarters (September 28, 2025 and December 28, 2025) show a slight increase, moving from 0.37 to 0.37, suggesting a potential, albeit small, renewed reliance on debt financing. The ratio remains within a relatively narrow range compared to the peak observed in April 2023.
Overall, the observed changes in the debt to capital ratio suggest dynamic shifts in the company’s financing strategy and capital structure. The period of increased leverage in late 2022 and early 2023 was followed by a period of deleveraging, and more recently, a period of relative stability with a slight upward trend.
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Debt to Assets
Johnson & Johnson, debt to assets calculation (quarterly data)
| Dec 28, 2025 | Sep 28, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Loans and notes payable | 8,495) | 6,387) | 11,526) | 13,897) | 5,983) | 4,462) | 9,855) | 8,550) | 3,451) | 3,870) | 11,701) | 17,979) | 12,771) | 4,424) | 4,305) | 4,297) | |||||
| Long-term debt, excluding current portion | 39,438) | 39,408) | 39,235) | 38,355) | 30,651) | 31,289) | 31,636) | 25,082) | 25,881) | 26,051) | 33,901) | 34,928) | 26,888) | 27,603) | 28,292) | 28,851) | |||||
| Total debt | 47,933) | 45,795) | 50,761) | 52,252) | 36,634) | 35,751) | 41,491) | 33,632) | 29,332) | 29,921) | 45,602) | 52,907) | 39,659) | 32,027) | 32,597) | 33,148) | |||||
| Total assets | 199,210) | 192,816) | 193,389) | 193,671) | 180,104) | 178,287) | 181,088) | 171,966) | 167,558) | 166,061) | 191,686) | 195,969) | 187,378) | 175,124) | 177,724) | 178,355) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets1 | 0.24 | 0.24 | 0.26 | 0.27 | 0.20 | 0.20 | 0.23 | 0.20 | 0.18 | 0.18 | 0.24 | 0.27 | 0.21 | 0.18 | 0.18 | 0.19 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | 0.50 | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | 0.50 | 0.50 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | 0.49 | 0.51 | 0.51 | |||||
| Amgen Inc. | 0.60 | 0.61 | 0.64 | 0.64 | 0.65 | 0.66 | 0.69 | 0.69 | 0.67 | 0.67 | 0.68 | 0.69 | 0.60 | 0.61 | 0.62 | 0.62 | |||||
| Bristol-Myers Squibb Co. | 0.50 | 0.51 | 0.52 | 0.54 | 0.54 | 0.53 | 0.55 | 0.56 | 0.42 | 0.41 | 0.40 | 0.40 | 0.41 | 0.40 | 0.42 | 0.44 | |||||
| Danaher Corp. | 0.22 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.22 | 0.22 | 0.25 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.26 | |||||
| Eli Lilly & Co. | 0.38 | 0.37 | 0.40 | 0.43 | 0.43 | 0.41 | 0.40 | 0.41 | 0.39 | 0.35 | 0.34 | 0.36 | 0.33 | 0.33 | 0.36 | 0.35 | |||||
| Gilead Sciences Inc. | 0.42 | 0.43 | 0.45 | 0.44 | 0.45 | 0.43 | 0.44 | 0.45 | 0.40 | 0.40 | 0.40 | 0.41 | 0.40 | 0.40 | 0.42 | 0.42 | |||||
| Merck & Co. Inc. | 0.36 | 0.32 | 0.30 | 0.30 | 0.32 | 0.32 | 0.34 | 0.32 | 0.33 | 0.33 | 0.35 | 0.29 | 0.28 | 0.28 | 0.30 | 0.30 | |||||
| Pfizer Inc. | 0.31 | 0.30 | 0.30 | 0.30 | 0.30 | 0.31 | 0.32 | 0.31 | 0.32 | 0.30 | 0.30 | 0.18 | 0.18 | 0.19 | 0.21 | 0.20 | |||||
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | |||||
| Thermo Fisher Scientific Inc. | 0.36 | 0.35 | 0.35 | 0.35 | 0.32 | 0.35 | 0.36 | 0.37 | 0.35 | 0.36 | 0.36 | 0.37 | 0.35 | 0.32 | 0.33 | 0.36 | |||||
| Vertex Pharmaceuticals Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
Based on: 10-K (reporting date: 2025-12-28), 10-Q (reporting date: 2025-09-28), 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).
1 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 47,933 ÷ 199,210 = 0.24
2 Click competitor name to see calculations.
The debt-to-assets ratio exhibits fluctuations over the observed period, indicating changes in the company’s financial leverage. Initially, the ratio remained relatively stable, followed by a period of increase, and then a return towards earlier levels before increasing again.
- Initial Stability (Apr 3, 2022 – Oct 2, 2022)
- From April 3, 2022, to October 2, 2022, the debt-to-assets ratio remained consistent, fluctuating between 0.18 and 0.19. This suggests a stable capital structure during this timeframe, with debt financing representing approximately 18-19% of total assets.
- Increase in Leverage (Dec 31, 2022 – Apr 2, 2023)
- A notable increase in the ratio is observed from December 31, 2022, to April 2, 2023, rising from 0.21 to 0.27. This indicates a significant increase in debt relative to assets, potentially due to increased borrowing or a decrease in asset value. The ratio peaked at 0.27, representing the highest level of leverage within the analyzed period.
- Subsequent Reduction (Jul 2, 2023 – Oct 1, 2023)
- Following the peak, the ratio decreased to 0.18 by October 1, 2023. This suggests a reduction in debt or an increase in assets, leading to a more conservative capital structure. The ratio returned to levels similar to those observed in the earlier part of the period.
- Fluctuation and Recent Increase (Dec 31, 2023 – Dec 28, 2025)
- From December 31, 2023, through December 28, 2025, the ratio experienced further fluctuations, generally trending upwards. It increased from 0.18 to 0.24. While not reaching the peak observed in April 2023, the ratio demonstrates a consistent, albeit moderate, increase in financial leverage over the last several quarters. The ratio remained at 0.24 for the final three reporting periods.
Overall, the company’s debt-to-assets ratio demonstrates a dynamic pattern. While periods of stability are present, the observed increases suggest a willingness to utilize debt financing, or potentially, external factors impacting asset valuation. The recent trend indicates a moderate increase in leverage, which warrants continued monitoring.
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Financial Leverage
Johnson & Johnson, financial leverage calculation (quarterly data)
| Dec 28, 2025 | Sep 28, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Total assets | 199,210) | 192,816) | 193,389) | 193,671) | 180,104) | 178,287) | 181,088) | 171,966) | 167,558) | 166,061) | 191,686) | 195,969) | 187,378) | 175,124) | 177,724) | 178,355) | |||||
| Total Johnson & Johnson shareholders’ equity | 81,544) | 79,277) | 78,473) | 78,109) | 71,490) | 70,158) | 71,538) | 70,020) | 68,774) | 71,228) | 75,149) | 70,869) | 76,804) | 74,599) | 76,357) | 74,709) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Financial leverage1 | 2.44 | 2.43 | 2.46 | 2.48 | 2.52 | 2.54 | 2.53 | 2.46 | 2.44 | 2.33 | 2.55 | 2.77 | 2.44 | 2.35 | 2.33 | 2.39 | |||||
| Benchmarks | |||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | — | — | — | 95.89 | 40.65 | 23.78 | 20.94 | 18.59 | 13.00 | 11.26 | 10.52 | 10.14 | 8.04 | 8.84 | 9.77 | 8.80 | |||||
| Amgen Inc. | 10.46 | 9.37 | 11.83 | 14.40 | 15.63 | 12.07 | 15.34 | 18.51 | 15.59 | 11.83 | 13.31 | 16.59 | 17.79 | 17.44 | 24.51 | 64.62 | |||||
| Bristol-Myers Squibb Co. | 4.87 | 5.22 | 5.43 | 5.32 | 5.67 | 5.46 | 5.56 | 6.01 | 3.23 | 3.15 | 2.92 | 2.96 | 3.12 | 3.01 | 3.08 | 3.26 | |||||
| Danaher Corp. | 1.59 | 1.56 | 1.56 | 1.56 | 1.57 | 1.57 | 1.57 | 1.56 | 1.58 | 1.67 | 1.64 | 1.65 | 1.68 | 1.72 | 1.76 | 1.80 | |||||
| Eli Lilly & Co. | 4.24 | 4.83 | 5.52 | 5.67 | 5.55 | 5.31 | 5.30 | 4.99 | 5.94 | 5.16 | 4.95 | 4.75 | 4.65 | 4.71 | 5.51 | 5.03 | |||||
| Gilead Sciences Inc. | 2.60 | 2.72 | 2.83 | 2.95 | 3.05 | 2.95 | 2.93 | 3.21 | 2.72 | 2.80 | 2.95 | 2.95 | 2.97 | 2.97 | 3.11 | 3.17 | |||||
| Merck & Co. Inc. | 2.60 | 2.50 | 2.40 | 2.38 | 2.53 | 2.64 | 2.58 | 2.62 | 2.84 | 2.59 | 2.70 | 2.30 | 2.37 | 2.41 | 2.48 | 2.61 | |||||
| Pfizer Inc. | 2.41 | 2.25 | 2.32 | 2.30 | 2.42 | 2.38 | 2.47 | 2.40 | 2.54 | 2.22 | 2.22 | 1.94 | 2.06 | 2.10 | 2.24 | 2.23 | |||||
| Regeneron Pharmaceuticals Inc. | 1.30 | 1.30 | 1.28 | 1.28 | 1.29 | 1.28 | 1.28 | 1.27 | 1.27 | 1.29 | 1.28 | 1.28 | 1.29 | 1.29 | 1.32 | 1.32 | |||||
| Thermo Fisher Scientific Inc. | 2.07 | 2.02 | 2.00 | 2.01 | 1.96 | 2.05 | 2.08 | 2.13 | 2.11 | 2.14 | 2.15 | 2.24 | 2.21 | 2.08 | 2.14 | 2.26 | |||||
| Vertex Pharmaceuticals Inc. | 1.37 | 1.44 | 1.40 | 1.39 | 1.37 | 1.42 | 1.36 | 1.29 | 1.29 | 1.32 | 1.32 | 1.31 | 1.30 | 1.28 | 1.31 | 1.31 | |||||
Based on: 10-K (reporting date: 2025-12-28), 10-Q (reporting date: 2025-09-28), 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).
1 Q4 2025 Calculation
Financial leverage = Total assets ÷ Total Johnson & Johnson shareholders’ equity
= 199,210 ÷ 81,544 = 2.44
2 Click competitor name to see calculations.
Financial leverage, as indicated by the ratio presented, exhibits a generally increasing trend over the observed period, with some fluctuations. Initially, the ratio decreased from 2.39 in April 2022 to 2.33 in July 2022, before stabilizing around 2.35 in October 2022. A subsequent increase to 2.44 was noted by the end of 2022.
- Overall Trend
- The ratio experienced a more pronounced upward movement in the first half of 2023, peaking at 2.77 in April 2023. This suggests an increased reliance on debt financing relative to equity during this period. Following this peak, the ratio decreased to 2.55 in July 2023, then further to 2.33 in October 2023, before rising again to 2.44 by the end of 2023.
The period from early 2024 through mid-2025 demonstrates a relatively stable pattern, with the ratio fluctuating between 2.43 and 2.54. A slight increase is observed towards the end of the period, reaching 2.44 in December 2025. This indicates that while the company’s leverage has increased overall, it has remained within a manageable range in recent quarters.
- Recent Fluctuations
- The most recent quarterly values show a slight increase in financial leverage, moving from 2.54 in September 2024 to 2.52 in December 2024, and then to 2.48 in March 2025, before settling at 2.44 in December 2025. These fluctuations, while present, are relatively minor and do not represent a significant shift in the company’s financial structure.
Considering the entire timeframe, the financial leverage ratio has increased from 2.39 to 2.44. This suggests a moderate increase in the proportion of debt used to finance assets. The observed fluctuations should be monitored to assess any potential risks associated with increased debt levels.
- Peak Leverage
- The highest recorded ratio of 2.77 in April 2023 warrants attention. While not drastically high, it represents the most significant level of financial leverage observed throughout the analyzed period and should be considered in the context of the company’s overall financial health and risk tolerance.
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Interest Coverage
Johnson & Johnson, interest coverage calculation (quarterly data)
| Dec 28, 2025 | Sep 28, 2025 | 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 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net earnings (loss) | 5,116) | 5,152) | 5,537) | 10,999) | 3,431) | 2,694) | 4,686) | 3,255) | 4,049) | 26,028) | 5,144) | (68) | 3,520) | 4,458) | 4,814) | 5,149) | |||||
| Less: Net earnings (loss) from discontinued operations, net of tax | —) | —) | —) | —) | —) | —) | —) | —) | (83) | 21,719) | (232) | 423) | —) | —) | —) | —) | |||||
| Add: Income tax expense | (150) | 2,341) | 954) | 2,632) | 456) | 644) | 1,062) | 459) | 694) | 908) | 930) | (796) | 681) | 1,364) | 1,026) | 713) | |||||
| Add: Interest expense, net of portion capitalized | 214) | 245) | 308) | 204) | 137) | 193) | 270) | 155) | 151) | 192) | 217) | 212) | 177) | 51) | 38) | 10) | |||||
| Earnings before interest and tax (EBIT) | 5,180) | 7,738) | 6,799) | 13,835) | 4,024) | 3,531) | 6,018) | 3,869) | 4,977) | 5,409) | 6,523) | (1,075) | 4,378) | 5,873) | 5,878) | 5,872) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Interest coverage1 | 34.55 | 36.24 | 33.48 | 34.09 | 23.10 | 23.92 | 26.40 | 29.06 | 20.51 | 19.09 | 23.89 | 31.49 | 79.71 | 141.63 | 160.27 | 164.15 | |||||
| Benchmarks | |||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||
| Amgen Inc. | 4.26 | 3.89 | 3.53 | 3.18 | 2.46 | 2.45 | 2.10 | 2.38 | 3.73 | 4.54 | 5.43 | 6.51 | 6.22 | 6.83 | 6.97 | 6.40 | |||||
| Danaher Corp. | 16.97 | 16.41 | 15.01 | 16.80 | 17.71 | 16.11 | 17.61 | 17.81 | 18.64 | 23.66 | 29.65 | 35.60 | 40.30 | 41.32 | 35.26 | 33.54 | |||||
| Gilead Sciences Inc. | 10.57 | 10.71 | 8.20 | 7.94 | 1.71 | 1.18 | 2.58 | 2.11 | 8.27 | 8.88 | 9.03 | 8.84 | 7.22 | 5.80 | 6.73 | 6.97 | |||||
| Regeneron Pharmaceuticals Inc. | 120.42 | 123.21 | 134.19 | 105.27 | 87.59 | 79.88 | 69.47 | 57.85 | 58.52 | 61.70 | 69.61 | 73.97 | 82.80 | 108.62 | 116.35 | 163.24 | |||||
| Thermo Fisher Scientific Inc. | 6.12 | 6.19 | 6.09 | 6.25 | 6.03 | 5.62 | 5.62 | 5.53 | 5.54 | 5.98 | 6.64 | 8.28 | 11.56 | 13.59 | 15.70 | 16.73 | |||||
| Vertex Pharmaceuticals Inc. | 350.11 | 348.55 | 258.29 | -11.94 | 9.12 | 7.76 | 6.14 | 111.61 | 100.32 | 96.54 | 90.90 | 82.27 | 78.23 | 70.08 | 66.72 | 48.17 | |||||
Based on: 10-K (reporting date: 2025-12-28), 10-Q (reporting date: 2025-09-28), 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).
1 Q4 2025 Calculation
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= (5,180 + 7,738 + 6,799 + 13,835)
÷ (214 + 245 + 308 + 204)
= 34.55
2 Click competitor name to see calculations.
The interest coverage ratio exhibits considerable fluctuation over the observed period. Initially, the ratio demonstrates a strong position, subsequently declining before a period of recovery and renewed volatility. A general trend of decreasing coverage is apparent when comparing the beginning and end of the analyzed timeframe, though punctuated by significant quarterly variations.
- Initial Strength and Subsequent Decline (Apr 3, 2022 – Dec 31, 2022)
- The interest coverage ratio begins at a high of 164.15 and generally decreases to 79.71 by December 31, 2022. This decline suggests a weakening ability to meet interest obligations from earnings, though the ratio remains comfortably above a level generally considered safe by creditors. The decrease coincides with a rise in interest expense during this period.
- Significant Volatility and Low Point (Apr 2, 2023 – Dec 31, 2023)
- The period from April 2, 2023, through December 31, 2023, is characterized by substantial volatility. The ratio experiences a dramatic drop to 31.49 in April 2023, followed by a recovery to 20.51 by December 2023. This period includes a notably negative EBIT value in April 2023, which significantly impacts the ratio. Interest expense remains relatively stable during this timeframe.
- Recovery and Stabilization (Apr 2, 2023 – Jun 30, 2024)
- From January 2024 through June 2024, the ratio shows a recovery, peaking at 29.06 in March 2024, before settling at 26.40 in June 2024. This improvement is linked to increased earnings before interest and tax. However, the ratio does not return to the levels observed in the initial period.
- Recent Fluctuations and Final Period (Sep 29, 2024 – Dec 28, 2025)
- The final portion of the period demonstrates continued fluctuation, with the ratio ranging from 23.10 to 36.24. A peak of 36.24 is observed in September 2025, followed by a decrease to 34.55 by December 2025. While the ratio remains positive, the continued variability suggests ongoing sensitivity to changes in earnings and interest expense. The final value of 34.55 indicates a moderate, but not exceptionally strong, ability to cover interest obligations.
Overall, the interest coverage ratio demonstrates a pattern of initial strength, followed by a period of decline and volatility, and a partial recovery. The ratio’s sensitivity to fluctuations in EBIT is evident, particularly during periods of negative earnings. While the ratio generally remains above 1.0, indicating a capacity to cover interest expense, the observed trends warrant continued monitoring.
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