Johnson & Johnson (NYSE:JNJ)

The analysis of the financial turnover ratios over the reported quarters reveals distinct trends in asset utilization and equity management.

Net Fixed Asset Turnover

This ratio demonstrates a general upward trend starting from 4.4 in late 2020 and peaking at 5.29 near the end of 2022, indicating improved efficiency in using fixed assets to generate sales. However, from early 2023 onwards, a declining trend is apparent, with the ratio gradually decreasing to 4.13 by mid-2025. This suggests a reduction in fixed asset utilization efficiency in the most recent periods after earlier gains.

Total Asset Turnover

The total asset turnover ratio shows a consistent improvement from 0.47 in late 2020 to a high of 0.55 at the end of 2022, reflecting enhanced overall asset efficiency in generating revenue. Post-2022, a modest decline is visible, with the ratio stabilizing around 0.46 to 0.51 in the period up to mid-2025, indicating some easing in asset turnover but maintaining a relatively stable utilization level overall.

Equity Turnover

Equity turnover exhibits a relatively stable pattern with slight fluctuations. It starts near 1.31 in late 2020, slowly tapering to around 1.14 by mid-2025. Periodic minor increases and decreases suggest varying efficiency in equity usage to support sales, but overall a gentle decline points towards a gradual reduction in equity turnover over the observed periods.

In summary, fixed and total asset turnovers both experienced an initial phase of improvement, reaching their respective peaks around late 2022, followed by a period of decline or stabilization. Equity turnover shows a consistent but slow downward trend, indicating a marginally decreasing efficiency in leveraging shareholders' equity over time. These patterns may inform assessments of operational efficiency and capital utilization strategy moving forward.

The quarterly financial data reveals several notable trends across sales, property, plant and equipment, and net fixed asset turnover over the observed periods.

Sales to customers

Sales exhibit cyclical fluctuations with peaks notably around December quarters of each year, which may indicate seasonal demand patterns. The highest sales value is observed near the end of 2021, reaching approximately 24,804 million USD, followed by a slight decline and stabilization in subsequent quarters. Sales generally range between approximately 20,000 and 24,800 million USD throughout the periods. After a dip in early 2023, sales showed a mild recovery heading into 2024 but remain below the peak levels seen in late 2021.

Property, plant and equipment, net

The net value of property, plant, and equipment remains relatively stable with a gradual upward trend over time. Starting at about 17,400 million USD in early 2020, this asset base experiences minor fluctuations but shows consistent growth from early 2022 onwards, culminating near 21,949 million USD by mid-2025. This steady increase suggests ongoing investment or asset capitalization efforts, supporting the company's operational capacity.

Net fixed asset turnover

This ratio, available from the end of 2020 onwards, measures the efficiency of fixed assets in generating sales. It rises from 4.4 initially to a peak of 5.29 during early 2022, indicating improved utilization of fixed assets in generating revenue. However, a downward trend follows, with the ratio declining to around 4.13 by mid-2025. This decline could signal less efficient asset use or a relative increase in asset base without commensurate sales growth in recent quarters.

In summary, the overall sales demonstrate typical seasonal patterns with moderate volatility, while the asset base consistently expands. The net fixed asset turnover ratio shows an initial improvement in asset utilization efficiency, followed by a gradual decline, suggesting potential challenges in maintaining sales growth relative to fixed asset investments.

The analysis of the quarterly financial data reveals several key trends in sales, total assets, and asset turnover ratios over the reported periods.

Sales to Customers

Sales exhibited variability across quarters, with figures initially around 20,691 million US dollars at the end of March 2020. Sales then declined to 18,336 million in June 2020, followed by a recovery and growth, peaking at 24,804 million by December 2021. Subsequently, sales showed some fluctuations, generally ranging between approximately 21,000 million and 23,700 million from 2022 through mid-2023. Towards the end of the timeline, sales figures mostly stabilized in the lower 22,000 million range, with a minor increase noted in June 2025 to approximately 23,743 million.

Total Assets

Total assets increased from 155,017 million US dollars at the end of March 2020 to a peak of 195,969 million by April 2023. Following this peak, total assets experienced a reduction, declining to around 166,061 million by October 2023. After this period, a general recovery trend is observed, with total assets rising again to approximately 193,671 million by June 2025. This pattern suggests a phase of asset accumulation followed by divestment or asset base reduction, and subsequently, growth or re-investment in assets.

Total Asset Turnover Ratio

The asset turnover ratio data is available starting from September 2020. The ratio began at 0.47, gradually increased to a high of 0.55 by December 2021, indicating improved efficiency in generating sales from assets. Afterward, the ratio declined, fluctuating around 0.47 to 0.53 through mid-2023. From late 2023 to mid-2025, the ratio generally trended downward, stabilizing near 0.46 to 0.47. This pattern suggests that asset utilization efficiency peaked around late 2021 and has somewhat decreased or normalized thereafter.

In summary, sales showed resilience with periods of increase and slight decline, while total assets experienced a notable rise followed by a reduction and subsequent recovery. Asset turnover improved initially but saw a decrease in later periods, indicating changing efficiency in asset utilization. The overall data suggest cycles of investment and divestment, along with fluctuations in operational efficiency over the analyzed quarters.

The financial data exhibits several noteworthy trends in sales, shareholders’ equity, and equity turnover over the analyzed periods.

Sales to customers

Sales demonstrated some volatility with a decline from 20,691 million USD in March 2020 to 18,336 million USD in June 2020, likely reflective of external disruptions during that period. Following this dip, sales generally increased, peaking at 24,804 million USD in December 2021. Afterwards, a fluctuating pattern emerged with sales slightly declining in early 2023 to approximately 20,894 million USD in April 2023, before partially recovering again to 23,743 million USD in June 2025. Overall, sales display a recovery trend after the initial trough, though with intermittent periods of decline and stabilization around the low 21,000–23,000 million USD range in recent quarters.

Total Johnson & Johnson shareholders’ equity

Shareholders’ equity showed a steady upward trajectory, beginning at 61,294 million USD as of March 2020 and rising consistently to 78,473 million USD by June 2025. Despite minor fluctuations in late 2022 and at the start of 2024, the equity base maintained solid growth. This trend indicates sustained reinvestment or retained earnings accumulation supporting the company’s financial strength over the analyzed period.

Equity turnover ratio

The equity turnover ratio remained relatively stable, fluctuating between approximately 1.14 and 1.31 over the recorded quarters. The ratio started at 1.31 in September 2020 and saw a slight decline to around 1.15 by June 2025. This gradual decrease suggests that sales growth was modest relative to the increase in equity, reflecting a cautious expansion or increased capital base with relatively steady sales volume.

In summary, the data indicates that sales experienced some short-term volatility, likely influenced by external events, but overall showed resilience with periods of recovery. The shareholders’ equity grew consistently, indicating strengthening financial foundations. The modest decline in equity turnover ratio suggests a conservative growth approach or an expanding equity base that outpaced sales increases in recent years.