Johnson & Johnson (NYSE:JNJ)

Net fixed asset turnover

The net fixed asset turnover ratio demonstrates an overall upward trend from the earliest recorded value of 4.4 to a peak of 5.29 before gradually declining in subsequent periods. The peak occurs in the periods around late 2021 and early 2022. Following this peak, there is a noticeable decrease, tapering down to around 4.13 in the latest periods observed. This pattern indicates initially increasing efficiency in utilizing fixed assets to generate sales, followed by a decline in this efficiency over time.

Total asset turnover

The total asset turnover ratio exhibits a moderate increase from the initial value of 0.47 to a high of 0.55 in late 2021, showing improved effectiveness in generating revenue from overall assets. After reaching this peak, the ratio declines to values close to 0.46-0.48 towards the most recent periods. This suggests that while asset utilization improved initially, it experienced a reduction in efficiency thereafter, settling slightly below earlier peak levels.

Equity turnover

The equity turnover ratio remains relatively stable throughout the periods, with values fluctuating between approximately 1.14 and 1.31. The ratio starts near 1.31, dips slightly during some periods, and hovers around the 1.2 mark in more recent periods. This indicates that the company’s effectiveness in generating sales from shareholders' equity has been consistent, with only minor variations over time and no clear trend of significant improvement or deterioration.

The sales to customers demonstrate variability with an overall tendency to fluctuate around a stable range. Initial figures show moderate declines and rises, with values oscillating between approximately 18,000 and 25,000 million US dollars. After peaking near the end of 2021, sales experience some volatility but generally maintain levels within the 21,000 to 24,000 million US dollars band through to the latter part of the period analyzed.

Property, plant, and equipment (net) show a progressive increase over the timeline, with some minor fluctuations. Starting in the range of approximately 17,400 million US dollars, the net fixed assets incrementally grow to about 22,300 million US dollars by the end of the period. This suggests ongoing investment and expansion or maintenance of the company’s fixed asset base, despite some interim decreases.

The net fixed asset turnover ratio, an indicator of how efficiently the company utilizes its fixed assets to generate sales, shows an upward trend from 4.4 to a peak of around 5.3 during the 2021 period. After this peak, there appears to be a declining trend down to about 4.13 by late 2025. This implies an initial improvement in asset utilization efficiency but a subsequent reduction in that efficiency in the later quarters.

Sales to Customers

Values fluctuate, peaking near the end of 2021, with a general range between 18,000 and 25,000 million US dollars.

Property, Plant, and Equipment, Net

Displays gradual growth from around 17,400 million US dollars to over 22,300 million, indicating continuous capital investment.

Net Fixed Asset Turnover

Improved efficiency with a peak near 5.3 in 2021, followed by a declining trend to about 4.13, suggesting reduced asset utilization effectiveness later on.

Sales to Customers

Sales figures exhibit some fluctuations over the observed periods. Starting from approximately $20.7 billion, there is a decline in the second quarter followed by a general upward trend through the end of 2021, peaking near $24.8 billion. From 2022 onwards, the sales values show variability around the $23 billion mark with occasional dips below $21 billion in early 2023. The later quarters indicate a modest recovery, with sales again approaching the $24 billion level by the middle to end of 2025. Overall, sales demonstrate cyclical changes but tend to stabilize within a range bounded by roughly $20 billion and $24 billion.

Total Assets

Total assets increase steadily from $155 billion initially to a peak near $196 billion in early 2023. Subsequently, there is a noticeable contraction in total assets dropping down to the $166-$171 billion range in late 2023 and early 2024. After this dip, total assets begin to climb again, surpassing $180 billion during 2024 and continuing to inch upward towards $193 billion by the end of the data period in 2025. This pattern suggests a period of asset consolidation or divestiture followed by reinvestment or acquisition activity driving asset growth.

Total Asset Turnover

The asset turnover ratio starts near 0.47 in late 2020, rising gradually to about 0.55 in late 2021, indicating improved efficiency in using assets to generate sales during this period. From 2022 onwards, the ratio declines to a range between 0.46 and 0.53, reflecting some reduction in operational efficiency or changes in asset base versus sales productivity. The ratio remains relatively volatile but does not return to the earlier peak, implying moderate challenges in maintaining asset-use efficiency in the more recent periods.

Summary Insights

Over the time span observed, sales revenues display cyclical variations with moderate growth followed by stabilization around a range near $20-$24 billion. Asset levels trend upward with a mid-period contraction that is later reversed, indicating strategic shifts in asset management. Asset turnover improved initially but encountered some decline and volatility thereafter, pointing to fluctuating efficiency in asset utilization. Taken together, these patterns suggest a business navigating changing market conditions, with efforts to optimize asset base and maintain sales growth despite operational efficiency pressures.

The quarterly financial data exhibits fluctuations and trends across sales, shareholders' equity, and equity turnover ratios over the observed periods.

Sales to customers

Sales demonstrated a variable pattern with alternating periods of growth and decline. Initially, sales decreased from approximately 20.7 billion USD to 18.3 billion USD, followed by a recovery and sustained growth into late 2021, reaching around 24.8 billion USD. Subsequently, sales experienced some volatility, with noticeable decreases especially in early 2023 periods, dropping to near 20.9 billion USD, followed by a partial recovery mid-2023 to levels exceeding 23 billion USD by late 2025. These fluctuations indicate varying market conditions or demand cycles influencing revenue generation.

Total shareholders’ equity

Shareholders' equity showed an overall upward trend over the years despite some intermittent declines. Starting at approximately 61.3 billion USD, equity increased steadily, surpassing 74 billion USD in 2021 and peaking around 78.5 billion USD towards late 2025. Occasional dips occurred, notably around early 2023 and early 2024, but the general trajectory reflects consistent capital growth and accumulation of retained earnings or capital injections, enhancing company valuation and financial stability.

Equity turnover ratio

The equity turnover ratio, available for several periods from late 2020 onwards, remained relatively stable with minor fluctuations predominantly within the range of 1.14 to 1.31. The ratio reflects moderate efficiency in utilizing shareholders' equity to generate sales. There was a subtle decreasing tendency in the recent periods, suggesting either sales growth slightly lagged behind equity increases or efficiency in capital use diminished marginally. Overall, the ratio indicates consistent but not markedly improving asset utilization effectiveness.

In summary, the data reveals a resilient financial position with sales showing variability but generally maintaining high revenue levels. Shareholders’ equity growth signifies robust capital accumulation, while equity turnover suggests steady capital efficiency with minor signs of moderation in recent quarters.