Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
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Long-term Activity Ratios (Summary)
Johnson & Johnson, long-term (investment) activity ratios
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio displayed an overall downward trend from 2021 through 2024, decreasing from 4.95 to 4.33 after a peak in 2021. This indicates a declining efficiency in the utilization of fixed assets to generate sales over this period, despite a slight rebound in the last year.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- A similar pattern is observed in the adjusted ratio which accounts for operating lease right-of-use assets. It peaked in 2021 at 4.72 and then declined to 4.11 by the end of 2024. The slight recovery in 2024, like the net fixed asset turnover, suggests some improvement, though overall efficiency using these assets also fell over the period.
- Total Asset Turnover
- The total asset turnover ratio increased from 0.47 in 2020 to 0.52 in 2021, indicating improved efficiency in asset use to generate revenue. However, it stabilized around 0.51 for the subsequent two years before declining marginally to 0.49 in 2024. This stability followed by a slight decrease suggests consistent but tapering asset utilization effectiveness.
- Equity Turnover
- The equity turnover ratio demonstrated a gradual decline from 1.31 in 2020 to 1.24 in 2022, maintaining the same level through to 2024. This decrease signals a reduction in the efficiency of equity employed to generate sales, stabilizing at a lower level after 2022.
Net Fixed Asset Turnover
Johnson & Johnson, net fixed asset turnover calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales to customers | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, 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. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Net fixed asset turnover = Sales to customers ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Sales to Customers
- Sales showed an increasing trend from 2020 to 2022, rising from 82,584 million USD in 2020 to 94,943 million USD in 2022. However, in 2023, sales declined notably to 85,159 million USD before partially recovering to 88,821 million USD in 2024. The overall pattern indicates an initial growth phase followed by a decrease and a subsequent mild rebound.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment exhibited steady growth throughout the entire period. Starting at 18,766 million USD in 2020, the amount gradually increased each year to reach 20,518 million USD by the end of 2024. This consistent rise suggests ongoing investment in fixed assets.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio increased from 4.4 in 2020 to a peak of 4.95 in 2021, indicating improved efficiency in generating sales from fixed assets during this time. Subsequently, the ratio declined through 2023 to a low of 4.28 before stabilizing slightly to 4.33 in 2024. This trend reflects a reduction in asset utilization efficiency after 2021, correlating with the dip in sales despite the steady growth in fixed assets.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Johnson & Johnson, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales to customers | ||||||
| Property, plant and equipment, net | ||||||
| ROU asset pertaining to operating leases | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), 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. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales to customers ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The annual financial data reveals several notable trends in sales, asset base, and asset efficiency over the five-year period from 2020 to 2024.
- Sales to customers
- Sales increased steadily from 82.584 billion USD in 2020 to 94.943 billion USD in 2022, reaching a peak during this period. However, sales declined notably in 2023 to 85.159 billion USD, before rebounding slightly to 88.821 billion USD in 2024. Overall, this indicates a growth phase followed by a contraction and a moderate recovery.
- Property, plant and equipment, net
- The net property, plant, and equipment balance rose consistently each year, beginning at 19.766 billion USD in 2020 and reaching 21.618 billion USD in 2024. This steady increase suggests ongoing investment in fixed assets despite fluctuations in sales.
- Net fixed asset turnover ratio
- The turnover ratio, which measures sales generated per unit of fixed assets, improved from 4.18 in 2020 to a high of 4.72 in 2021, indicating increased efficiency in using fixed assets to generate revenue. Subsequently, the ratio gradually declined to 4.54 in 2022 and further to 4.07 in 2023, reflecting diminishing asset utilization efficiency during the sales downturn. A slight uptick to 4.11 in 2024 corresponds with partial recovery in sales.
In summary, the data points to an initial period of growth both in sales and asset efficiency, followed by a contraction phase between 2022 and 2023. Despite the reduced sales, the company continued to expand its fixed asset base, which, combined with lower turnover ratios, suggests less efficient use of assets during the downturn. The moderate recovery in 2024 sales and the stabilization of the turnover ratio indicate potential improvement in operational performance.
Total Asset Turnover
Johnson & Johnson, total asset turnover calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales to customers | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, 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. | ||||||
| Total Asset Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Total Asset Turnover, Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Total asset turnover = Sales to customers ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Sales to customers
- The sales to customers showed an overall upward trend from 2020 to 2024, increasing from 82,584 million USD in 2020 to 88,821 million USD in 2024. The sales rose significantly between 2020 and 2021, followed by a modest increase in 2022. However, a noticeable decline occurred in 2023 before recovering somewhat in 2024.
- Total assets
- Total assets increased from 174,894 million USD in 2020 to a peak of 187,378 million USD in 2022. Subsequently, there was a sharp decline in 2023 to 167,558 million USD, after which the assets rose again to 180,104 million USD in 2024. This exhibits variability with a general upward bias, but the dip in 2023 suggests potential divestitures, asset write-downs, or other changes impacting the asset base.
- Total asset turnover
- Total asset turnover ratio improved from 0.47 in 2020 to a high of 0.52 in 2021, indicating improved efficiency in generating sales from assets. The ratio then slightly decreased and stabilized around 0.51 in 2022 and 2023, before declining to 0.49 in 2024. This suggests a marginal decline in the efficiency of asset use in the most recent year.
- Overall analysis
- The sales growth coupled with fluctuating asset levels indicates periods of operational adjustments. The peak in asset turnover ratio in 2021 suggests optimal utilization of assets that year, followed by slight declines that could reflect either asset growth outpacing sales or efficiency challenges. The company experienced a significant contraction of assets in 2023, which impacted turnover ratio and sales, with some recovery in 2024 noted. Monitoring asset utilization alongside sales trends will be important for evaluating future operational performance.
Equity Turnover
Johnson & Johnson, equity turnover calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales to customers | ||||||
| Shareholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, 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. | ||||||
| Equity Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Equity Turnover, Industry | ||||||
| Health Care | ||||||
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).
1 2024 Calculation
Equity turnover = Sales to customers ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Sales to customers
- The sales figures show an overall upward trend from 2020 through 2024, starting at $82,584 million in 2020 and peaking at $94,943 million in 2022. However, there is a notable decline in 2023 to $85,159 million, followed by a moderate recovery to $88,821 million in 2024. This pattern suggests some volatility in sales performance, with a peak reached in 2022 and a partial rebound after a downturn in 2023.
- Shareholders’ equity
- Shareholders’ equity steadily increased from $63,278 million in 2020 to $76,804 million in 2022. In 2023, it decreased to $68,774 million, before increasing again slightly to $71,490 million in 2024. This indicates a generally positive growth in equity over the period, despite a dip in 2023, reflecting some fluctuations that may be associated with the changes in sales or other financial factors.
- Equity turnover
- The equity turnover ratio demonstrates a gradual decrease over the period, starting at 1.31 in 2020 and declining to 1.24 by 2022, where it remains stable through 2024. This decline indicates that the efficiency with which the company is using its equity to generate sales has slightly diminished, stabilizing at a lower level in the last three years.