Stock Analysis on Net
Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Beginner level

Short-term Activity Ratios (Summary)

Johnson & Johnson, short-term (operating) activity ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Turnover Ratios
Inventory turnover 3.04 2.89 2.93 3.16 3.05 2.99 2.93 2.98 3.15 3.15 3.14 2.95 2.89 2.48 2.29 2.45 2.66
Receivables turnover 6.08 5.55 5.50 5.56 5.67 5.52 5.55 5.78 5.79 5.79 5.72 5.56 5.67 5.65 5.46 5.87 6.14
Payables turnover 2.99 3.94 4.09 3.78 3.23 3.66 3.92 3.91 3.59 3.91 4.25 4.13 3.47 3.70 3.62 3.57 3.13
Working capital turnover 9.44 4.32 8.83 7.85 8.81 8.91 7.79 6.34 5.51 4.12 4.49 5.02 6.09 7.42 7.31 1.89 1.86
Average No. Days
Average inventory processing period 120 126 124 116 119 122 125 122 116 116 116 124 126 147 159 149 137
Add: Average receivable collection period 60 66 66 66 64 66 66 63 63 63 64 66 64 65 67 62 59
Operating cycle 180 192 190 182 183 188 191 185 179 179 180 190 190 212 226 211 196
Less: Average payables payment period 122 93 89 97 113 100 93 93 102 93 86 88 105 99 101 102 116
Cash conversion cycle 58 99 101 85 70 88 98 92 77 86 94 102 85 113 125 109 80

Based on: 10-K (filing date: 2021-02-22), 10-Q (filing date: 2020-10-23), 10-Q (filing date: 2020-07-24), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-18), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Johnson & Johnson’s inventory turnover ratio deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level.
Receivables turnover An activity ratio equal to revenue divided by receivables. Johnson & Johnson’s receivables turnover ratio improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Johnson & Johnson’s payables turnover ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Johnson & Johnson’s working capital turnover ratio deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Johnson & Johnson’s number of days of inventory outstanding deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Johnson & Johnson’s operating cycle deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Johnson & Johnson’s number of days of payables outstanding increased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Johnson & Johnson’s cash conversion cycle improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Inventory Turnover

Johnson & Johnson, inventory turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Selected Financial Data (US$ in millions)
Cost of products sold 7,814  6,972  6,579  7,062  7,134  6,867  6,940  6,615  6,961  6,589  6,927  6,614  7,243  6,902  5,823  5,386  5,534  5,486  5,336  5,329 
Inventories 9,344  9,599  9,424  8,868  9,020  9,173  9,263  9,086  8,599  8,678  8,810  9,014  8,765  9,521  9,699  8,878  8,144  8,488  8,523  8,170 
Short-term Activity Ratio
Inventory turnover1 3.04 2.89 2.93 3.16 3.05 2.99 2.93 2.98 3.15 3.15 3.14 2.95 2.89 2.48 2.29 2.45 2.66
Benchmarks
Inventory Turnover, Competitors2
Abbott Laboratories 2.99 2.71 2.56 2.92 3.07 2.96 2.94 3.13 3.35 3.38 3.36 3.23 3.43 3.27 3.00 2.49 3.71
AbbVie Inc. 4.65 3.66 2.36 4.17 4.10 3.86 3.89 4.40 4.81 4.47 4.91 4.23 4.39 3.54 3.92 4.26 4.04
Amgen Inc. 1.58 1.48 1.38 1.31 1.22 1.29 1.32 1.40 1.39 1.35 1.31 1.36 1.44 1.39 1.39 1.44 1.52
Bristol-Myers Squibb Co. 5.68 5.83 4.46 3.50 1.88 6.10 5.45 5.29 5.48 5.09 5.20 5.19 5.20 4.62 4.53 3.72 3.99
Eli Lilly & Co. 1.38 1.42 1.48 1.55 1.48 1.62 1.70 1.96 1.56 1.57 1.56 1.36 1.36 1.34 1.32 1.40 1.59
Gilead Sciences Inc. 2.72 4.82 4.52 4.75 5.07 5.17 5.22 5.36 5.96 5.56 5.22 4.99 5.46 3.66 3.04 2.73 2.68
Illumina Inc. 2.78 2.42 2.29 2.74 3.00 2.55 2.53 2.55 2.68 2.65 2.67 2.69 2.78 2.72 2.71 2.63 2.44
Merck & Co. Inc. 2.45 2.22 2.33 2.46 2.36 2.35 2.29 2.34 2.48 2.52 2.56 2.41 2.51 2.41 2.37 2.59 2.85
Pfizer Inc. 1.08 1.05 1.15 1.21 1.23 1.30 1.31 1.38 1.50 1.40 1.43 1.39 1.48 1.41 1.51 1.61 1.82
Regeneron Pharmaceuticals Inc. 0.26 0.23 0.25 0.25 0.26 0.22 0.16 0.15 0.16 0.18 0.22 0.26 0.28 0.30 0.32 0.38 0.49
Vertex Pharmaceuticals Inc. 2.62 2.93 3.03 3.29 3.27 2.99 3.25 3.17 3.29 2.99 2.89 2.55 2.46 2.56 2.52 2.52 2.71
Zoetis Inc. 1.26 1.22 1.21 1.31 1.41 1.39 1.42 1.46 1.37 1.27 1.26 1.23 1.24 1.20 1.18 1.12 1.11

Based on: 10-K (filing date: 2021-02-22), 10-Q (filing date: 2020-10-23), 10-Q (filing date: 2020-07-24), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-18), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10).

1 Q4 2020 Calculation
Inventory turnover = (Cost of products soldQ4 2020 + Cost of products soldQ3 2020 + Cost of products soldQ2 2020 + Cost of products soldQ1 2020) ÷ Inventories
= (7,814 + 6,972 + 6,579 + 7,062) ÷ 9,344 = 3.04

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Johnson & Johnson’s inventory turnover ratio deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level.

Receivables Turnover

Johnson & Johnson, receivables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Selected Financial Data (US$ in millions)
Sales to customers 22,475  21,082  18,336  20,691  20,747  20,729  20,562  20,021  20,394  20,348  20,830  20,009  20,195  19,650  18,839  17,766  18,106  17,820  18,482  17,482 
Accounts receivable, trade, less allowances for doubtful accounts and credit losses 13,576  14,579  14,645  14,874  14,481  14,801  14,653  14,115  14,098  14,048  14,111  14,166  13,490  13,155  13,283  12,300  11,699  11,798  12,062  11,406 
Short-term Activity Ratio
Receivables turnover1 6.08 5.55 5.50 5.56 5.67 5.52 5.55 5.78 5.79 5.79 5.72 5.56 5.67 5.65 5.46 5.87 6.14
Benchmarks
Receivables Turnover, Competitors2
Abbott Laboratories 5.40 5.70 6.12 6.06 5.88 5.75 5.58 5.75 5.90 5.77 5.70 5.31 5.22 5.24 5.10 4.95 6.42
AbbVie Inc. 5.19 4.83 4.34 5.35 6.13 5.94 5.95 5.75 6.08 5.57 5.34 5.07 5.55 5.58 5.50 5.61 5.39
Amgen Inc. 5.36 5.81 4.31 4.55 5.47 6.19 5.89 5.96 6.29 6.42 6.29 6.04 6.73 6.43 6.17 6.73 6.92
Eli Lilly & Co. 4.18 4.75 4.75 4.52 4.91 5.10 5.04 5.70 4.68 5.00 4.95 5.19 5.03 5.11 5.06 5.37 5.27
Gilead Sciences Inc. 4.98 5.83 6.84 5.73 6.18 6.64 6.46 6.66 6.52 6.30 6.43 6.43 6.66 6.56 6.26 7.10 6.64
Illumina Inc. 6.65 6.98 8.70 7.53 6.18 6.39 7.24 7.43 6.48 7.49 7.86 7.34 6.70 6.77 6.68 6.59 6.29
Merck & Co. Inc. 6.11 5.62 6.23 5.88 6.91 5.45 5.57 5.66 5.98 5.66 5.66 5.62 5.84 5.19 5.38 5.65 5.67
Pfizer Inc. 5.28 4.86 5.39 5.13 5.93 5.62 5.48 5.61 6.68 5.32 5.39 5.57 6.39 5.25 5.52 5.92 6.42
Regeneron Pharmaceuticals Inc. 1.79 1.69 2.51 2.41 2.30 2.29 2.31 2.44 2.38 2.39 2.56 2.51 2.42 2.35 2.47 2.55 2.49
Vertex Pharmaceuticals Inc. 7.01 7.57 6.82 5.70 6.57 8.16 7.43 7.45 7.44 7.45 6.67 7.38 8.85 8.71 8.60 9.71 8.47
Zoetis Inc. 6.59 6.46 6.44 6.57 5.76 5.97 6.08 6.10 5.62 6.16 5.74 5.77 5.32 5.08 5.15 5.20 5.35

Based on: 10-K (filing date: 2021-02-22), 10-Q (filing date: 2020-10-23), 10-Q (filing date: 2020-07-24), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-18), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10).

1 Q4 2020 Calculation
Receivables turnover = (Sales to customersQ4 2020 + Sales to customersQ3 2020 + Sales to customersQ2 2020 + Sales to customersQ1 2020) ÷ Accounts receivable, trade, less allowances for doubtful accounts and credit losses
= (22,475 + 21,082 + 18,336 + 20,691) ÷ 13,576 = 6.08

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Johnson & Johnson’s receivables turnover ratio improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Payables Turnover

Johnson & Johnson, payables turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Selected Financial Data (US$ in millions)
Cost of products sold 7,814  6,972  6,579  7,062  7,134  6,867  6,940  6,615  6,961  6,589  6,927  6,614  7,243  6,902  5,823  5,386  5,534  5,486  5,336  5,329 
Accounts payable 9,505  7,044  6,765  7,411  8,544  7,491  6,912  6,923  7,537  7,000  6,516  6,443  7,310  6,390  6,135  6,082  6,918  5,971  6,061  5,965 
Short-term Activity Ratio
Payables turnover1 2.99 3.94 4.09 3.78 3.23 3.66 3.92 3.91 3.59 3.91 4.25 4.13 3.47 3.70 3.62 3.57 3.13
Benchmarks
Payables Turnover, Competitors2
Abbott Laboratories 3.80 4.37 4.00 4.20 4.07 4.29 3.97 4.20 4.27 4.68 4.98 4.99 5.14 6.13 6.49 6.70 7.66
Amgen Inc. 4.33 5.01 4.60 3.60 3.18 4.18 4.20 3.86 3.40 3.90 3.92 3.69 3.01 4.64 4.66 4.59 4.54
Bristol-Myers Squibb Co. 4.34 4.65 3.73 3.23 3.30 3.85 3.56 3.43 3.46 3.68 3.45 3.70 2.70 3.40 3.55 3.43 2.97
Eli Lilly & Co. 3.41 3.53 3.92 3.97 3.36 4.51 4.52 5.13 4.55 5.04 4.91 4.98 4.30 4.93 4.57 4.64 4.19
Gilead Sciences Inc. 5.42 9.22 8.93 7.94 6.56 7.22 7.48 8.33 6.14 7.83 7.20 6.21 5.37 6.02 5.23 4.26 3.53
Illumina Inc. 5.40 6.43 7.36 8.11 7.22 7.44 7.63 7.67 5.61 6.35 6.49 6.23 5.79 5.63 4.79 5.54 5.31
Merck & Co. Inc. 3.37 3.64 4.10 4.02 3.78 4.29 4.25 4.43 4.07 4.41 4.39 4.09 4.12 4.85 4.37 5.37 4.95
Pfizer Inc. 2.02 2.37 2.55 2.56 2.42 2.71 2.69 2.68 2.41 2.66 2.76 2.92 2.41 3.22 3.33 3.52 2.72
Regeneron Pharmaceuticals Inc. 1.03 0.95 1.07 1.06 0.87 0.89 0.87 0.76 0.82 1.10 1.19 1.01 1.14
Vertex Pharmaceuticals Inc. 4.75 6.66 6.54 6.11 6.25 5.24 6.03 5.26 3.69 4.03 4.01 4.05 3.72 3.26 3.06 3.27 3.42
Zoetis Inc. 4.50 5.56 5.73 7.29 6.62 7.06 6.90 8.43 6.11 7.66 7.77 8.20 6.80 8.38 8.85 7.45 6.29

Based on: 10-K (filing date: 2021-02-22), 10-Q (filing date: 2020-10-23), 10-Q (filing date: 2020-07-24), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-18), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10).

1 Q4 2020 Calculation
Payables turnover = (Cost of products soldQ4 2020 + Cost of products soldQ3 2020 + Cost of products soldQ2 2020 + Cost of products soldQ1 2020) ÷ Accounts payable
= (7,814 + 6,972 + 6,579 + 7,062) ÷ 9,505 = 2.99

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Johnson & Johnson’s payables turnover ratio decreased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Working Capital Turnover

Johnson & Johnson, working capital turnover calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Selected Financial Data (US$ in millions)
Current assets 51,237  57,578  45,892  44,226  45,274  44,333  41,799  41,987  46,033  47,194  45,438  42,768  43,088  41,829  38,789  63,347  65,032  63,319  66,291  62,738 
Less: Current liabilities 42,493  38,847  36,772  33,689  35,964  35,162  31,353  29,111  31,230  27,437  27,488  27,081  30,537  31,806  28,872  25,119  26,287  23,230  21,536  22,134 
Working capital 8,744  18,731  9,120  10,537  9,310  9,171  10,446  12,876  14,803  19,757  17,950  15,687  12,551  10,023  9,917  38,228  38,745  40,089  44,755  40,604 
 
Sales to customers 22,475  21,082  18,336  20,691  20,747  20,729  20,562  20,021  20,394  20,348  20,830  20,009  20,195  19,650  18,839  17,766  18,106  17,820  18,482  17,482 
Short-term Activity Ratio
Working capital turnover1 9.44 4.32 8.83 7.85 8.81 8.91 7.79 6.34 5.51 4.12 4.49 5.02 6.09 7.42 7.31 1.89 1.86
Benchmarks
Working Capital Turnover, Competitors2
Abbott Laboratories 4.06 4.52 5.02 6.84 6.64 5.57 5.04 5.80 5.44 5.61 5.72 4.78 2.44 1.87 1.79 1.76 1.04
AbbVie Inc. 0.97 0.98 12.30 64.14 10.46 8.75 6.16 4.62 5.68 3.91 4.00
Amgen Inc. 2.55 1.87 1.87 3.27 3.96 1.10 1.11 1.00 0.93 0.85 0.82 0.73 0.54 0.53 0.54 0.61 0.63
Bristol-Myers Squibb Co. 3.72 2.77 3.09 2.38 2.28 0.78 0.82 2.71 3.32 4.04 5.09 3.91 3.64 3.39 3.52 3.58 3.64
Eli Lilly & Co. 4.93 5.45 8.85 16.68 11.54 12.35 14.53 17.59 2.84 2.46 4.52 4.95 4.90 4.72 4.94 8.54 5.16
Gilead Sciences Inc. 5.30 1.07 1.55 1.24 1.08 1.17 0.89 0.89 0.86 0.88 1.04 1.24 1.27 1.05 1.40 2.18 2.67
Illumina Inc. 1.00 1.01 1.09 1.09 0.94 0.96 0.96 1.03 1.24 1.28 1.46 1.46 1.23 1.21 1.27 1.35 1.49
Merck & Co. Inc. 109.83 7.67 6.59 17.87 8.90 8.42 10.53 6.33 11.53 5.06 6.95 5.72 6.52 4.71 4.25 3.41 2.97
Pfizer Inc. 4.58 3.58 3.59 59.74 3.57 3.39 2.97 4.25 10.34 7.05 4.90 4.35 5.69 4.78 6.74
Regeneron Pharmaceuticals Inc. 0.79 0.77 1.20 0.75 0.86 0.87 0.90 0.78 0.82 0.93 1.13 1.17 1.16 1.20 1.24 1.45 1.72
Vertex Pharmaceuticals Inc. 0.99 1.10 1.10 1.23 1.19 1.07 1.00 1.06 1.12 1.05 1.06 1.09 1.35 1.42 1.37 1.46 1.64
Zoetis Inc. 1.50 1.50 1.42 2.08 2.13 1.72 1.77 1.79 1.83 1.86 1.71 1.67 1.70 1.63 2.79 3.00 2.15

Based on: 10-K (filing date: 2021-02-22), 10-Q (filing date: 2020-10-23), 10-Q (filing date: 2020-07-24), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-18), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10).

1 Q4 2020 Calculation
Working capital turnover = (Sales to customersQ4 2020 + Sales to customersQ3 2020 + Sales to customersQ2 2020 + Sales to customersQ1 2020) ÷ Working capital
= (22,475 + 21,082 + 18,336 + 20,691) ÷ 8,744 = 9.44

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Johnson & Johnson’s working capital turnover ratio deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level.

Average Inventory Processing Period

Johnson & Johnson, average inventory processing period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Selected Financial Data
Inventory turnover 3.04 2.89 2.93 3.16 3.05 2.99 2.93 2.98 3.15 3.15 3.14 2.95 2.89 2.48 2.29 2.45 2.66
Short-term Activity Ratio (no. days)
Average inventory processing period1 120 126 124 116 119 122 125 122 116 116 116 124 126 147 159 149 137
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Abbott Laboratories 122 135 142 125 119 123 124 116 109 108 109 113 107 112 122 147 98
AbbVie Inc. 79 100 155 88 89 94 94 83 76 82 74 86 83 103 93 86 90
Amgen Inc. 231 247 265 279 300 282 276 261 262 271 278 268 254 262 263 253 241
Bristol-Myers Squibb Co. 64 63 82 104 194 60 67 69 67 72 70 70 70 79 81 98 92
Eli Lilly & Co. 265 257 247 236 247 225 214 186 233 233 235 268 268 272 276 260 230
Gilead Sciences Inc. 134 76 81 77 72 71 70 68 61 66 70 73 67 100 120 134 136
Illumina Inc. 131 151 160 133 122 143 144 143 136 138 137 136 131 134 134 139 150
Merck & Co. Inc. 149 164 156 148 155 156 160 156 147 145 142 152 146 151 154 141 128
Pfizer Inc. 338 346 317 302 296 281 279 264 244 261 254 262 246 258 242 227 201
Regeneron Pharmaceuticals Inc. 1,422 1,563 1,476 1,460 1,426 1,648 2,260 2,429 2,334 2,011 1,659 1,423 1,309 1,205 1,138 963 749
Vertex Pharmaceuticals Inc. 139 125 121 111 112 122 112 115 111 122 126 143 148 142 145 145 135
Zoetis Inc. 289 299 301 280 258 262 256 251 266 288 290 296 293 305 310 326 329

Based on: 10-K (filing date: 2021-02-22), 10-Q (filing date: 2020-10-23), 10-Q (filing date: 2020-07-24), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-18), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10).

1 Q4 2020 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.04 = 120

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Johnson & Johnson’s number of days of inventory outstanding deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level.

Average Receivable Collection Period

Johnson & Johnson, average receivable collection period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Selected Financial Data
Receivables turnover 6.08 5.55 5.50 5.56 5.67 5.52 5.55 5.78 5.79 5.79 5.72 5.56 5.67 5.65 5.46 5.87 6.14
Short-term Activity Ratio (no. days)
Average receivable collection period1 60 66 66 66 64 66 66 63 63 63 64 66 64 65 67 62 59
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Abbott Laboratories 68 64 60 60 62 63 65 64 62 63 64 69 70 70 72 74 57
AbbVie Inc. 70 76 84 68 60 61 61 64 60 66 68 72 66 65 66 65 68
Amgen Inc. 68 63 85 80 67 59 62 61 58 57 58 60 54 57 59 54 53
Eli Lilly & Co. 87 77 77 81 74 72 72 64 78 73 74 70 73 71 72 68 69
Gilead Sciences Inc. 73 63 53 64 59 55 56 55 56 58 57 57 55 56 58 51 55
Illumina Inc. 55 52 42 48 59 57 50 49 56 49 46 50 55 54 55 55 58
Merck & Co. Inc. 60 65 59 62 53 67 66 64 61 64 64 65 63 70 68 65 64
Pfizer Inc. 69 75 68 71 62 65 67 65 55 69 68 65 57 70 66 62 57
Regeneron Pharmaceuticals Inc. 204 216 146 152 159 159 158 149 153 152 143 145 151 155 148 143 147
Vertex Pharmaceuticals Inc. 52 48 53 64 56 45 49 49 49 49 55 49 41 42 42 38 43
Zoetis Inc. 55 56 57 56 63 61 60 60 65 59 64 63 69 72 71 70 68

Based on: 10-K (filing date: 2021-02-22), 10-Q (filing date: 2020-10-23), 10-Q (filing date: 2020-07-24), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-18), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10).

1 Q4 2020 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.08 = 60

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Johnson & Johnson, operating cycle calculation (quarterly data)

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Selected Financial Data
Average inventory processing period 120 126 124 116 119 122 125 122 116 116 116 124 126 147 159 149 137
Average receivable collection period 60 66 66 66 64 66 66 63 63 63 64 66 64 65 67 62 59
Short-term Activity Ratio
Operating cycle1 180 192 190 182 183 188 191 185 179 179 180 190 190 212 226 211 196
Benchmarks
Operating Cycle, Competitors2
Abbott Laboratories 190 199 202 185 181 186 189 180 171 171 173 182 177 182 194 221 155
AbbVie Inc. 149 176 239 156 149 155 155 147 136 148 142 158 149 168 159 151 158
Amgen Inc. 299 310 350 359 367 341 338 322 320 328 336 328 308 319 322 307 294
Eli Lilly & Co. 352 334 324 317 321 297 286 250 311 306 309 338 341 343 348 328 299
Gilead Sciences Inc. 207 139 134 141 131 126 126 123 117 124 127 130 122 156 178 185 191
Illumina Inc. 186 203 202 181 181 200 194 192 192 187 183 186 186 188 189 194 208
Merck & Co. Inc. 209 229 215 210 208 223 226 220 208 209 206 217 209 221 222 206 192
Pfizer Inc. 407 421 385 373 358 346 346 329 299 330 322 327 303 328 308 289 258
Regeneron Pharmaceuticals Inc. 1,626 1,779 1,622 1,612 1,585 1,807 2,418 2,578 2,487 2,163 1,802 1,568 1,460 1,360 1,286 1,106 896
Vertex Pharmaceuticals Inc. 191 173 174 175 168 167 161 164 160 171 181 192 189 184 187 183 178
Zoetis Inc. 344 355 358 336 321 323 316 311 331 347 354 359 362 377 381 396 397

Based on: 10-K (filing date: 2021-02-22), 10-Q (filing date: 2020-10-23), 10-Q (filing date: 2020-07-24), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-18), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10).

1 Q4 2020 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 120 + 60 = 180

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Johnson & Johnson’s operating cycle deteriorated from Q2 2020 to Q3 2020 but then improved from Q3 2020 to Q4 2020 exceeding Q2 2020 level.

Average Payables Payment Period

Johnson & Johnson, average payables payment period calculation (quarterly data)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Selected Financial Data
Payables turnover 2.99 3.94 4.09 3.78 3.23 3.66 3.92 3.91 3.59 3.91 4.25 4.13 3.47 3.70 3.62 3.57 3.13
Short-term Activity Ratio (no. days)
Average payables payment period1 122 93 89 97 113 100 93 93 102 93 86 88 105 99 101 102 116
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Abbott Laboratories 96 83 91 87 90 85 92 87 85 78 73 73 71 60 56 54 48
Amgen Inc. 84 73 79 101 115 87 87 95 107 94 93 99 121 79 78 80 80
Bristol-Myers Squibb Co. 84 78 98 113 110 95 103 106 105 99 106 99 135 107 103 106 123
Eli Lilly & Co. 107 103 93 92 109 81 81 71 80 72 74 73 85 74 80 79 87
Gilead Sciences Inc. 67 40 41 46 56 51 49 44 59 47 51 59 68 61 70 86 103
Illumina Inc. 68 57 50 45 51 49 48 48 65 57 56 59 63 65 76 66 69
Merck & Co. Inc. 108 100 89 91 97 85 86 82 90 83 83 89 89 75 83 68 74
Pfizer Inc. 181 154 143 143 151 135 136 136 152 137 132 125 151 113 110 104 134
Regeneron Pharmaceuticals Inc. 353 384 342 343 421 411 419 481 442 333 307 360 321
Vertex Pharmaceuticals Inc. 77 55 56 60 58 70 61 69 99 91 91 90 98 112 119 111 107
Zoetis Inc. 81 66 64 50 55 52 53 43 60 48 47 45 54 44 41 49 58

Based on: 10-K (filing date: 2021-02-22), 10-Q (filing date: 2020-10-23), 10-Q (filing date: 2020-07-24), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-18), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10).

1 Q4 2020 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.99 = 122

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Johnson & Johnson’s number of days of payables outstanding increased from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.

Cash Conversion Cycle

Johnson & Johnson, cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Sep 27, 2020 Jun 28, 2020 Mar 29, 2020 Dec 29, 2019 Sep 29, 2019 Jun 30, 2019 Mar 31, 2019 Dec 30, 2018 Sep 30, 2018 Jul 1, 2018 Apr 1, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016
Selected Financial Data
Average inventory processing period 120 126 124 116 119 122 125 122 116 116 116 124 126 147 159 149 137
Average receivable collection period 60 66 66 66 64 66 66 63 63 63 64 66 64 65 67 62 59
Average payables payment period 122 93 89 97 113 100 93 93 102 93 86 88 105 99 101 102 116
Short-term Activity Ratio
Cash conversion cycle1 58 99 101 85 70 88 98 92 77 86 94 102 85 113 125 109 80
Benchmarks
Cash Conversion Cycle, Competitors2
Abbott Laboratories 94 116 111 98 91 101 97 93 86 93 100 109 106 122 138 167 107
Amgen Inc. 215 237 271 258 252 254 251 227 213 234 243 229 187 240 244 227 214
Eli Lilly & Co. 245 231 231 225 212 216 205 179 231 234 235 265 256 269 268 249 212
Gilead Sciences Inc. 140 99 93 95 75 75 77 79 58 77 76 71 54 95 108 99 88
Illumina Inc. 118 146 152 136 130 151 146 144 127 130 127 127 123 123 113 128 139
Merck & Co. Inc. 101 129 126 119 111 138 140 138 118 126 123 128 120 146 139 138 118
Pfizer Inc. 226 267 242 230 207 211 210 193 147 193 190 202 152 215 198 185 124
Regeneron Pharmaceuticals Inc. 1,273 1,395 1,280 1,269 1,164 1,396 1,999 2,097 2,045 1,830 1,495 1,208 1,139
Vertex Pharmaceuticals Inc. 114 118 118 115 110 97 100 95 61 80 90 102 91 72 68 72 71
Zoetis Inc. 263 289 294 286 266 271 263 268 271 299 307 314 308 333 340 347 339

Based on: 10-K (filing date: 2021-02-22), 10-Q (filing date: 2020-10-23), 10-Q (filing date: 2020-07-24), 10-Q (filing date: 2020-04-29), 10-K (filing date: 2020-02-18), 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10).

1 Q4 2020 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 120 + 60122 = 58

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Johnson & Johnson’s cash conversion cycle improved from Q2 2020 to Q3 2020 and from Q3 2020 to Q4 2020.