Johnson & Johnson (NYSE:JNJ)

The analyzed data reveals the following financial trends and insights over the observed periods:

Debt to Equity Ratio

The debt to equity ratio fluctuated over the timeline, beginning at 0.45 in March 2020 and showing an overall increase with some volatility. Notably, it peaked at 0.75 in April 2023 before declining to 0.42 by October 2023, then rising again to 0.67 by March 2025. This indicates periods of increased reliance on debt relative to equity punctuated by intervals of deleveraging.

Debt to Capital Ratio

This ratio followed a somewhat similar pattern, fluctuating between 0.30 and 0.43 for much of the period. It demonstrated a peak at 0.43 in April 2023, aligning with the debt to equity spike, before declining back toward approximately 0.30 by late 2023, and rising again to 0.40 by the end of the timeline. The changes suggest cyclical capital structure adjustments with moderate leverage.

Debt to Assets Ratio

The debt to assets ratio remained relatively stable with moderate increases. Starting at 0.18 in early 2020, it showed a gradual increase reaching a high of 0.27 in April 2023 and again near the end of the period in March 2025. This suggests a consistent but moderate increase in the proportion of assets financed through debt.

Financial Leverage Ratio

Financial leverage remained within a narrow band, moving between approximately 2.33 and 2.77 throughout the timeframe. The ratio peaked in April 2023 at 2.77, coinciding with the highest debt ratios, and then showed a slight downward trend thereafter. This stability implies consistent use of debt relative to equity to finance assets.

Interest Coverage Ratio

This metric exhibits considerable variability. Data begins from September 2020 with an interest coverage ratio of 83.07 and climbs to a substantial peak at 164.15 by July 2022, demonstrating strong ability to service interest expenses during this period. However, from that peak, the ratio decreases sharply, reaching a low of 19.09 in October 2023, indicative of a reduced cushion to cover interest obligations. Subsequently, it slightly recovers to 34.09 by March 2025. The fluctuations here suggest varying earnings performance or changes in interest expenses impacting coverage capacity.

Overall, the financial leverage and debt ratios indicate a company that generally manages moderate levels of debt with cyclical variations in capital structure usage. The significant fluctuations in interest coverage highlight periods of strong earnings followed by challenges in maintaining coverage levels, which may warrant further investigation into earnings volatility or debt servicing costs during those intervals.

Total debt

The total debt exhibits notable fluctuations over the observed periods. Starting at approximately $27.6 billion in March 2020, it increased steadily to peak around $37.8 billion by September 2020. Following this peak, a general decline occurred until October 2022, reaching about $32 billion. A significant spike is observed in December 2022, rising sharply to nearly $39.7 billion, and then further to over $52.9 billion by April 2023. After this, the total debt decreased again to around $29.9 billion by October 2023, before showing a rising pattern through the end of the period, approaching $52.3 billion in March 2025. Overall, the total debt demonstrates volatility with two distinct peaks near the end of 2022 and early 2023, suggesting periods of increased borrowing or financing activities.

Total shareholders' equity

Shareholders’ equity remained relatively stable with a slight upward trend across the entire timeframe. Beginning at approximately $61.3 billion in March 2020, equity increased gradually to reach over $74 billion by December 2021. It continued to hover near this range through 2022, with minor fluctuations. By mid-2023, equity slightly declined to about $70.9 billion but rebounded towards $78.1 billion by March 2025. The data indicates consistent equity growth, albeit with some minor cyclical adjustments, reflecting sustained shareholder value accumulation despite varying external conditions.

Debt to equity ratio

The debt to equity ratio shows variability corresponding to the movements in debt and equity levels. Initially at 0.45 in March 2020, it rose steadily to a peak of 0.59 by September 2020, corresponding with the earlier observed increase in total debt. Subsequently, the ratio decreased gradually to around 0.43 by October 2022, indicating a reduction in leverage. However, a marked increase in leverage is seen by April 2023, with the ratio climbing to 0.75. This elevated leverage level declines again to 0.42 by October 2023, before rising towards 0.67 by March 2025. These fluctuations suggest periods of strategic shifts in capital structure, likely influenced by financing needs or market conditions.

Total Debt

Total debt exhibited a generally volatile pattern throughout the observed periods. Starting at approximately $27.6 billion in early 2020, debt increased notably, peaking at about $37.8 billion in the third quarter of 2020. This was followed by a gradual reduction to around $31.6 billion by late 2022, after which there was a significant spike reaching nearly $52.9 billion in early 2023. Subsequently, debt levels fluctuated, with periods of decline and increase, remaining elevated with values ranging between approximately $29.3 billion and $52.3 billion through early 2025.

Total Capital

Total capital demonstrated a rising trend in the earlier periods, growing from roughly $88.9 billion in the first quarter of 2020 to a peak of about $123.8 billion in early 2023. After reaching this high point, total capital declined notably to just over $98.1 billion by the first quarter of 2024, followed by a recovery phase where it increased again to over $130.3 billion by the first quarter of 2025. This pattern indicates periods of both expansion and contraction, with an overall positive trajectory in total capital over the full timeframe.

Debt to Capital Ratio

The debt to capital ratio oscillated between 0.30 and 0.40 throughout the periods. It started at 0.31 in early 2020, increasing to a high of 0.37 in the third quarter of 2020, indicating a rise in leverage relative to total capital. Following this, the ratio moderately declined to approximately 0.30 in late 2022, suggesting a deleveraging phase. However, from early 2023 onwards, the ratio increased again, reaching a peak of 0.43, before fluctuating around mid-to-high 0.30s towards early 2025. The ratio’s movement reflects changes in both debt and capital levels, implying variations in financial leverage and possibly changes in financing strategy over time.

Total Debt

The total debt experienced notable fluctuations during the reported periods. Initially, there was a rise from approximately 27.6 billion USD in early 2020 to a peak near 37.8 billion USD by late 2020. Following this, total debt generally declined, reaching a low around 29.3 billion USD in early 2024. However, in the most recent quarters, the debt level rose sharply again, peaking at about 52.3 billion USD at the end of 2024 before slightly reducing to 36.6 billion USD by early 2025.

Total Assets

Total assets showed a steady upward trend over the periods examined. Starting at approximately 155 billion USD in early 2020, assets increased consistently, with only minor dips, reaching close to 196 billion USD by early 2023. Following this peak, there was a decline and some volatility, with asset levels descending to around 166 billion USD in late 2023 before rising again to near 194 billion USD by early 2025.

Debt to Assets Ratio

The debt to assets ratio varied between 0.18 and 0.27 across the intervals, indicating changes in capital structure and leverage over time. The ratio generally remained in the range of 0.18 to 0.22 during the early to mid-2020 period, before rising to a higher level of approximately 0.27 by early 2023, coinciding with a peak in debt. Afterward, the ratio decreased again to around 0.18 in early 2024. Yet, towards the end of 2024, the ratio increased to 0.27, reflecting the surge in debt relative to assets during that period.

Summary of Trends and Insights

Overall, the financial data reveals a pattern of increasing asset base with intermittent periods of asset declines. Debt levels demonstrated more volatility with marked increases at specific points, notably toward the end of 2022 and late 2024. The debt to assets ratio correspondingly fluctuates, highlighting periods of increased leverage. This suggests strategic borrowing or financing activities aligned with asset movements, possibly for growth, restructuring, or other capital needs. The pronounced peaks in debt and leverage near the end of the timeframe warrant further examination of the underlying transactions or external factors impacting financial policy during those quarters.

The analysis of the quarterly financial data reveals several key trends in the company's financial position over the observed periods.

Total Assets

Total assets exhibited an overall increasing trend from the beginning of the period through to the later quarters, starting at approximately 155 billion US dollars and reaching a peak of around 195.9 billion US dollars in early 2023. Subsequent quarters showed some fluctuations, including a notable decline to about 166 billion US dollars by the fourth quarter of 2023. However, the assets rebounded in the following quarters, rising again to approximately 193.7 billion US dollars by the first quarter of 2025. This pattern indicates periods of asset accumulation interspersed with occasional contractions, possibly reflecting strategic asset management or market influences.

Total Shareholders’ Equity

Shareholders' equity generally trended upwards from roughly 61.3 billion US dollars at the start to a peak near 76.3 billion US dollars by mid-2022. Post this peak, the equity experienced periodic declines and recoveries, notably dropping to about 68.8 billion US dollars at the end of 2023 before rising again to approximately 78.1 billion US dollars in early 2025. This dynamic suggests variations in retained earnings, share issuances or repurchases, and possibly fluctuations in other comprehensive income components.

Financial Leverage Ratio

The financial leverage ratio started at 2.53 and displayed oscillations within a range roughly between 2.33 and 2.77 across the quarters. The ratio increased notably to 2.76 towards the end of 2020, indicating higher reliance on debt relative to equity during that period. Thereafter, the leverage tended to stabilize around the mid-2.4 range, showing minor fluctuations. By early 2025, the ratio settled near 2.48, suggesting a balance between debt and equity financing that did not deviate significantly over the long term.

In summary, the financial data shows that the company experienced growth in its asset base and shareholders’ equity over the multi-year period, albeit with some cyclical adjustments. The leverage ratio remained relatively stable, indicating consistent financial strategy in terms of debt management. These trends together reflect a company maintaining steady growth while managing its capital structure prudently.

The earnings before interest and tax (EBIT) demonstrated significant volatility over the examined periods. Initially, EBIT started at a relatively high level of 6,534 million US dollars in March 2020, followed by a sharp decline to 3,985 million and 4,445 million US dollars in the subsequent quarters of 2020. A pronounced decrease occurred in December 2020 to 1,734 million US dollars. From there, EBIT recovered strongly in early 2021, peaking at 7,492 million US dollars in the first quarter, but then exhibited variability throughout 2021 with declines noted in July and October. The figure maintained moderate stability around 5,800 million US dollars during most quarters of 2022, albeit without clear growth momentum. However, the last quarter of 2022 saw a marked drop to 4,378 million US dollars, followed by a drastic negative EBIT of -1,075 million US dollars in early 2023. After this sharp downturn, EBIT rebounded robustly for the remainder of 2023, reaching 6,523 million US dollars in the third quarter and gradually trending around 5,000 to 6,000 million US dollars toward the end of the year. In 2024, EBIT figures fluctuated notably, ranging between approximately 3,500 million and 6,000 million US dollars, before reaching a significant high of 13,835 million US dollars by the first quarter of 2025.

Interest expense, net of the portion capitalized, displayed more gradual fluctuations but showed an overall upward trend over time. Beginning with relatively low values around 20 to 45 million US dollars in 2020, interest expense climbed periodically, peaking notably at 177 million US dollars in the last quarter of 2022 and remaining elevated throughout 2023 with quarterly expenses hovering above 150 million US dollars. This suggests increasing borrowing costs or financial obligations during this period. The expenses continued at comparable or higher levels into 2024, although no consistent pattern of increase or decrease is observable; the figures oscillate between approximately 130 million and 270 million US dollars quarterly.

The interest coverage ratio, available for selected quarters, initially indicated very strong capacity to cover interest expenses, with values exceeding 80 and even surpassing 160 in some quarters of 2021 and early 2022. This trend reflects robust earnings relative to interest obligations during these periods. However, a substantial decline in interest coverage appeared commencing in late 2022, dropping from nearly 80 to below 40 and further to values around 20 by mid-2023. This decline correlates with the reduced EBIT values and higher interest expenses observed concurrently. Despite this weakening, the interest coverage ratio remained above 20 in most quarters of 2023 and 2024, with a modest rebound to over 30 in the first quarter of 2025. Such values indicate a still adequate but diminished buffer to cover interest costs, denoting increased financial leverage or earnings pressure during the recent periods.