Johnson & Johnson (NYSE:JNJ)

The analysis of turnover ratios over the reported periods reveals several noteworthy trends. The Net Fixed Asset Turnover ratio exhibits a general decline after peaking in late 2021. Initially rising from approximately 4.4 to a high around 5.29, it then progressively decreases to around 4.28 by early 2025. This pattern suggests a reduction in efficiency in utilizing fixed assets to generate sales over the most recent periods.

The Total Asset Turnover ratio shows a moderate upward movement in the earlier part of the timeline, increasing from 0.47 to a peak of 0.55 by late 2021. Following this peak, the ratio declines gradually, ending near 0.46 by the start of 2025. This indicates a reduction in the overall effectiveness in using total assets to produce sales, with the most recent figures reflecting a lower turnover compared to the peak.

Equity Turnover remains relatively stable with minor fluctuations. It starts around 1.31, decreases slightly over time, and exhibits a modest downward trend toward 1.14 by early 2025. The variations are less pronounced than those observed in the asset turnover ratios, indicating a generally consistent pace of revenue generation relative to shareholders’ equity but with some weakening in recent periods.

Net Fixed Asset Turnover

Shows an initial increase followed by a steady decline after late 2021, highlighting decreasing efficiency in using fixed assets for revenue generation.

Total Asset Turnover

Improves up to late 2021 but diminishes thereafter, indicating a weakening in overall asset utilization.

Equity Turnover

Relatively stable with a slight downward trajectory, suggesting steady yet slightly declining equity usage efficiency.

Sales to customers

Sales figures exhibit fluctuations over the analyzed periods without a consistent upward or downward trend. There was a noticeable decline in sales from March 2020 (20,691 million USD) to June 2020 (18,336 million USD). Following this, sales recovered and generally increased until December 2021, peaking at 24,804 million USD. However, from early 2022 onwards, sales have shown variability, with decreases in certain quarters such as April 2023 (20,894 million USD) and March 2025 (21,893 million USD), indicating some instability or cyclical fluctuations in revenue generation.

Property, plant and equipment, net

The net value of property, plant, and equipment demonstrates a gradual upward trend across the period. Starting at 17,401 million USD in March 2020, the figure shows steady increases with occasional minor declines, such as in July 2022 (18,354 million USD) and October 2022 (18,152 million USD), but resumes growth thereafter. The value reaches a high of 20,871 million USD by March 2025. This indicates sustained investment or revaluation of fixed assets over time.

Net fixed asset turnover

This ratio displays a pattern of initial growth followed by a steady decline. The earliest recorded ratio of 4.4 (as of December 2020) increases to a peak of approximately 5.29 by October 2022, suggesting improved efficiency in utilizing fixed assets to generate sales during this period. Afterward, there is a gradual but consistent decrease, with the ratio settling near 4.28 by March 2025. This trend may reflect either a slowing rate of sales growth relative to asset base enlargement or a potential underutilization or aging of fixed assets in later periods.

Sales to Customers

Sales figures over the observed periods exhibit fluctuations with no consistent upward or downward trend. Initial sales were approximately 20,691 million US dollars, dropping to a low point near 18,336 million US dollars in the second quarter of 2020. Subsequently, sales rebounded and peaked near 24,804 million US dollars by the end of 2021. However, after this peak, sales declined again, fluctuating mostly between 21,000 and 22,500 million US dollars, ending at around 21,893 million US dollars in the first quarter of 2025. This suggests some volatility in sales performance without sustained growth over the longer term.

Total Assets

Total assets showed a generally upward trajectory in the initial part of the timeline, increasing steadily from approximately 155,017 million US dollars to close to 187,378 million US dollars by the end of 2022. After this growth phase, there was a noticeable decline in total assets during 2023, dropping to about 166,061 million US dollars. This was followed by a recovery phase during 2024 and early 2025, where total assets rose again, culminating in approximately 193,671 million US dollars by the end of the first quarter of 2025. Overall, total assets display cyclicality with periods of both expansion and contraction.

Total Asset Turnover

The total asset turnover ratio initially increased from 0.47 in late 2020 to a peak of 0.55 towards the end of 2021, indicating improving efficiency in generating sales from assets during this period. Post-peak, the ratio declined to approximately 0.47 by mid-2023, reflecting diminishing asset utilization efficiency. A partial recovery is observed by the end of 2023, with the ratio rising back to around 0.53. In the most recent periods, the ratio trends downward again, stabilizing around 0.46 to 0.49. This pattern suggests fluctuating management effectiveness in leveraging assets to generate revenue.

Summary Insights

The financial patterns indicate variability in sales performance, with intermittent peaks and troughs rather than steady growth. Asset levels generally increased over the longer term but experienced significant mid-period declines, followed by recoveries. Asset turnover efficiency demonstrated a cyclical pattern, suggesting that the company’s capacity to convert assets into sales faced periodic challenges. Overall, these trends imply that the company has undergone phases of growth and contraction, with operational efficiency and asset management showing variability over time.

The quarterly financial data reveals several noteworthy trends regarding sales, shareholders' equity, and equity turnover ratios over the analyzed periods.

Sales to Customers

Sales exhibited fluctuations with an initial value of approximately $20.7 billion in March 2020, dipping to a low of around $18.3 billion in June 2020. Recovery followed as sales climbed to around $24.8 billion by December 2021. However, from early 2022 onward, sales figures showed a mild decline and stabilization, remaining mostly within the range of $21.3 billion to $24.5 billion. By the last reported period in March 2025, sales had decreased slightly to approximately $21.9 billion, suggesting some volatility but no clear long-term upward or downward trajectory over recent quarters.

Total Johnson & Johnson Shareholders’ Equity

Shareholders' equity showed a general upward trend from around $61.3 billion in March 2020 to a peak near $76.4 billion by July 2022. Post this peak, equity values declined somewhat, fluctuating in a range generally between $68.7 billion and $75.1 billion through late 2023 and early 2024. Notably, there was a recovery toward the end of the period, with equity reaching approximately $78.1 billion by March 2025. This pattern points to periods of capital accumulation followed by some variability, likely reflecting broader market or operational conditions impacting retained earnings or capital structure.

Equity Turnover Ratio

The equity turnover ratio, observable from December 2020 onward, ranged narrowly between 1.14 and 1.31. The ratio peaked early in this series at 1.31, indicating relatively efficient generating of sales from equity invested. Subsequently, a gradual decline occurred with fluctuations, culminating in a lower ratio of 1.14 by March 2025. This decreasing trend in equity turnover may indicate either a relative increase in equity base compared to sales or slight reductions in sales efficiency relative to equity over time.

In summary, sales volumes have demonstrated variability with mild downtrends in recent quarters, whereas shareholders’ equity generally increased over the full period but with some declines and recovery phases. The equity turnover ratio data suggests a slight erosion in sales generation efficiency relative to equity in the latter stages of the timeframe. Taken together, these trends imply a company navigating fluctuating sales performance while maintaining a relatively robust equity position, though with some indications of decreased capital efficiency in recent quarters.