Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Johnson & Johnson, short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Johnson & Johnson inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Johnson & Johnson receivables turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Johnson & Johnson payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 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 number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Johnson & Johnson number of days of receivables outstanding deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Johnson & Johnson operating cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |
| 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. | |
| 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 cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |
Inventory Turnover
Johnson & Johnson, inventory 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) | ||||||
| Cost of products sold | 27,471) | 26,553) | 31,089) | 29,855) | 28,427) | |
| Inventories | 12,444) | 11,181) | 12,483) | 10,387) | 9,344) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 2.21 | 2.37 | 2.49 | 2.87 | 3.04 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| AbbVie Inc. | 4.04 | 4.98 | 4.87 | 5.58 | 4.65 | |
| Amgen Inc. | 1.84 | 0.89 | 1.30 | 1.58 | 1.58 | |
| Bristol-Myers Squibb Co. | 5.46 | 4.02 | 4.33 | 4.74 | 5.68 | |
| Danaher Corp. | 4.15 | 3.80 | 4.03 | 4.16 | 4.28 | |
| Eli Lilly & Co. | 1.11 | 1.23 | 1.54 | 1.88 | 1.38 | |
| Gilead Sciences Inc. | 3.66 | 3.64 | 3.75 | 4.08 | 2.72 | |
| Merck & Co. Inc. | 2.49 | 2.54 | 2.95 | 2.29 | 2.45 | |
| Pfizer Inc. | 1.65 | 2.45 | 3.82 | 3.40 | 1.08 | |
| Regeneron Pharmaceuticals Inc. | 0.64 | 0.70 | 0.65 | 1.25 | 0.58 | |
| Thermo Fisher Scientific Inc. | 5.06 | 5.06 | 4.60 | 3.88 | 4.02 | |
| Vertex Pharmaceuticals Inc. | 1.27 | 1.71 | 2.35 | 2.56 | 2.62 | |
| Inventory Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 2.46 | 2.55 | 3.06 | 3.11 | 2.63 | |
| Inventory Turnover, Industry | ||||||
| Health Care | 9.50 | 9.18 | 9.22 | 9.17 | 8.17 | |
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
Inventory turnover = Cost of products sold ÷ Inventories
= 27,471 ÷ 12,444 = 2.21
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 inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Receivables Turnover
Johnson & Johnson, receivables 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 | 88,821) | 85,159) | 94,943) | 93,775) | 82,584) | |
| Accounts receivable trade, less allowances | 14,842) | 14,873) | 16,160) | 15,283) | 13,576) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 5.98 | 5.73 | 5.88 | 6.14 | 6.08 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| AbbVie Inc. | 5.16 | 4.87 | 5.16 | 5.63 | 5.19 | |
| Amgen Inc. | 4.72 | 3.70 | 4.46 | 4.96 | 5.36 | |
| Bristol-Myers Squibb Co. | 5.19 | 4.93 | 5.48 | 5.65 | 5.72 | |
| Danaher Corp. | 6.75 | 6.09 | 6.40 | 6.36 | 5.51 | |
| Eli Lilly & Co. | 4.09 | 3.75 | 4.14 | 4.24 | 4.18 | |
| Gilead Sciences Inc. | 6.47 | 5.78 | 5.65 | 6.01 | 4.98 | |
| Merck & Co. Inc. | 6.24 | 5.81 | 6.27 | 5.28 | 6.11 | |
| Pfizer Inc. | 5.55 | 5.33 | 9.24 | 7.16 | 5.38 | |
| Regeneron Pharmaceuticals Inc. | 2.29 | 2.31 | 2.28 | 2.66 | 2.07 | |
| Thermo Fisher Scientific Inc. | 5.23 | 5.21 | 5.53 | 4.92 | 5.61 | |
| Vertex Pharmaceuticals Inc. | 6.85 | 6.31 | 6.19 | 6.66 | 7.01 | |
| Receivables Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.26 | 4.96 | 5.76 | 5.54 | 5.34 | |
| Receivables Turnover, Industry | ||||||
| Health Care | 8.42 | 8.15 | 8.84 | 8.65 | 8.64 | |
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
Receivables turnover = Sales to customers ÷ Accounts receivable trade, less allowances
= 88,821 ÷ 14,842 = 5.98
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 receivables turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Payables Turnover
Johnson & Johnson, payables 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) | ||||||
| Cost of products sold | 27,471) | 26,553) | 31,089) | 29,855) | 28,427) | |
| Accounts payable | 10,311) | 9,632) | 11,703) | 11,055) | 9,505) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 2.66 | 2.76 | 2.66 | 2.70 | 2.99 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| AbbVie Inc. | 5.74 | 5.54 | 5.94 | 6.05 | 6.76 | |
| Amgen Inc. | 6.74 | 5.32 | 4.08 | 4.72 | 4.33 | |
| Bristol-Myers Squibb Co. | 3.88 | 3.28 | 3.33 | 3.37 | 4.34 | |
| Danaher Corp. | 5.52 | 5.58 | 5.45 | 4.48 | 4.79 | |
| Eli Lilly & Co. | 2.61 | 2.73 | 3.43 | 4.38 | 3.41 | |
| Gilead Sciences Inc. | 7.50 | 11.81 | 6.25 | 9.36 | 5.42 | |
| Merck & Co. Inc. | 3.72 | 4.11 | 4.08 | 2.96 | 3.37 | |
| Pfizer Inc. | 3.17 | 3.72 | 5.04 | 5.53 | 2.02 | |
| Regeneron Pharmaceuticals Inc. | 2.50 | 2.99 | 2.65 | 4.32 | 2.36 | |
| Thermo Fisher Scientific Inc. | 8.18 | 8.97 | 7.67 | 6.83 | 7.45 | |
| Vertex Pharmaceuticals Inc. | 3.71 | 3.46 | 3.55 | 4.64 | 4.75 | |
| Payables Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 4.08 | 4.25 | 4.28 | 4.23 | 3.86 | |
| Payables Turnover, Industry | ||||||
| Health Care | 8.12 | 7.96 | 7.50 | 7.61 | 7.48 | |
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
Payables turnover = Cost of products sold ÷ Accounts payable
= 27,471 ÷ 10,311 = 2.66
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 payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level. |
Working Capital Turnover
Johnson & Johnson, working capital 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) | ||||||
| Current assets | 55,893) | 53,495) | 55,294) | 60,979) | 51,237) | |
| Less: Current liabilities | 50,321) | 46,282) | 55,802) | 45,226) | 42,493) | |
| Working capital | 5,572) | 7,213) | (508) | 15,753) | 8,744) | |
| Sales to customers | 88,821) | 85,159) | 94,943) | 93,775) | 82,584) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 15.94 | 11.81 | — | 5.95 | 9.44 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| AbbVie Inc. | — | — | — | — | — | |
| Amgen Inc. | 5.40 | 2.25 | 3.82 | 3.37 | 2.55 | |
| Bristol-Myers Squibb Co. | 7.79 | 4.60 | 8.30 | 3.95 | 3.72 | |
| Danaher Corp. | 8.85 | 4.22 | 4.20 | 8.40 | 3.48 | |
| Eli Lilly & Co. | 10.32 | — | 31.84 | 8.33 | 4.93 | |
| Gilead Sciences Inc. | 3.99 | 5.61 | 8.42 | 8.54 | 5.30 | |
| Merck & Co. Inc. | 6.19 | 9.29 | 5.16 | 7.62 | 109.83 | |
| Pfizer Inc. | 8.64 | — | 11.09 | 4.83 | 4.67 | |
| Regeneron Pharmaceuticals Inc. | 0.97 | 0.82 | 0.96 | 1.59 | 1.20 | |
| Thermo Fisher Scientific Inc. | 4.87 | 4.05 | 5.46 | 5.87 | 2.76 | |
| Vertex Pharmaceuticals Inc. | 1.83 | 0.93 | 0.85 | 1.02 | 0.99 | |
| Working Capital Turnover, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 7.86 | 6.68 | 7.25 | 5.87 | 5.34 | |
| Working Capital Turnover, Industry | ||||||
| Health Care | 19.80 | 16.59 | 15.34 | 11.93 | 11.78 | |
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
Working capital turnover = Sales to customers ÷ Working capital
= 88,821 ÷ 5,572 = 15.94
2 Click competitor name to see calculations.
Average Inventory Processing Period
Johnson & Johnson, average inventory processing period calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 2.21 | 2.37 | 2.49 | 2.87 | 3.04 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 165 | 154 | 147 | 127 | 120 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| AbbVie Inc. | 90 | 73 | 75 | 65 | 79 | |
| Amgen Inc. | 199 | 411 | 281 | 231 | 231 | |
| Bristol-Myers Squibb Co. | 67 | 91 | 84 | 77 | 64 | |
| Danaher Corp. | 88 | 96 | 91 | 88 | 85 | |
| Eli Lilly & Co. | 329 | 298 | 237 | 194 | 265 | |
| Gilead Sciences Inc. | 100 | 100 | 97 | 89 | 134 | |
| Merck & Co. Inc. | 147 | 144 | 124 | 159 | 149 | |
| Pfizer Inc. | 222 | 149 | 95 | 107 | 338 | |
| Regeneron Pharmaceuticals Inc. | 572 | 519 | 562 | 292 | 625 | |
| Thermo Fisher Scientific Inc. | 72 | 72 | 79 | 94 | 91 | |
| Vertex Pharmaceuticals Inc. | 287 | 214 | 156 | 143 | 139 | |
| Average Inventory Processing Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 149 | 143 | 119 | 117 | 139 | |
| Average Inventory Processing Period, Industry | ||||||
| Health Care | 38 | 40 | 40 | 40 | 45 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.21 = 165
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 number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024. |
Average Receivable Collection Period
Johnson & Johnson, average receivable collection period calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 5.98 | 5.73 | 5.88 | 6.14 | 6.08 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 61 | 64 | 62 | 59 | 60 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| AbbVie Inc. | 71 | 75 | 71 | 65 | 70 | |
| Amgen Inc. | 77 | 99 | 82 | 74 | 68 | |
| Bristol-Myers Squibb Co. | 70 | 74 | 67 | 65 | 64 | |
| Danaher Corp. | 54 | 60 | 57 | 57 | 66 | |
| Eli Lilly & Co. | 89 | 97 | 88 | 86 | 87 | |
| Gilead Sciences Inc. | 56 | 63 | 65 | 61 | 73 | |
| Merck & Co. Inc. | 58 | 63 | 58 | 69 | 60 | |
| Pfizer Inc. | 66 | 69 | 40 | 51 | 68 | |
| Regeneron Pharmaceuticals Inc. | 160 | 158 | 160 | 137 | 177 | |
| Thermo Fisher Scientific Inc. | 70 | 70 | 66 | 74 | 65 | |
| Vertex Pharmaceuticals Inc. | 53 | 58 | 59 | 55 | 52 | |
| Average Receivable Collection Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 69 | 74 | 63 | 66 | 68 | |
| Average Receivable Collection Period, Industry | ||||||
| Health Care | 43 | 45 | 41 | 42 | 42 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.98 = 61
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. | Johnson & Johnson number of days of receivables outstanding deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Operating Cycle
Johnson & Johnson, operating cycle calculation, comparison to benchmarks
No. days
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 165 | 154 | 147 | 127 | 120 | |
| Average receivable collection period | 61 | 64 | 62 | 59 | 60 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 226 | 218 | 209 | 186 | 180 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| AbbVie Inc. | 161 | 148 | 146 | 130 | 149 | |
| Amgen Inc. | 276 | 510 | 363 | 305 | 299 | |
| Bristol-Myers Squibb Co. | 137 | 165 | 151 | 142 | 128 | |
| Danaher Corp. | 142 | 156 | 148 | 145 | 151 | |
| Eli Lilly & Co. | 418 | 395 | 325 | 280 | 352 | |
| Gilead Sciences Inc. | 156 | 163 | 162 | 150 | 207 | |
| Merck & Co. Inc. | 205 | 207 | 182 | 228 | 209 | |
| Pfizer Inc. | 288 | 218 | 135 | 158 | 406 | |
| Regeneron Pharmaceuticals Inc. | 732 | 677 | 722 | 429 | 802 | |
| Thermo Fisher Scientific Inc. | 142 | 142 | 145 | 168 | 156 | |
| Vertex Pharmaceuticals Inc. | 340 | 272 | 215 | 198 | 191 | |
| Operating Cycle, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 218 | 217 | 182 | 183 | 207 | |
| Operating Cycle, Industry | ||||||
| Health Care | 81 | 85 | 81 | 82 | 87 | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 165 + 61 = 226
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 operating cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |
Average Payables Payment Period
Johnson & Johnson, average payables payment period calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 2.66 | 2.76 | 2.66 | 2.70 | 2.99 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 137 | 132 | 137 | 135 | 122 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| AbbVie Inc. | 64 | 66 | 61 | 60 | 54 | |
| Amgen Inc. | 54 | 69 | 90 | 77 | 84 | |
| Bristol-Myers Squibb Co. | 94 | 111 | 109 | 108 | 84 | |
| Danaher Corp. | 66 | 65 | 67 | 82 | 76 | |
| Eli Lilly & Co. | 140 | 134 | 106 | 83 | 107 | |
| Gilead Sciences Inc. | 49 | 31 | 58 | 39 | 67 | |
| Merck & Co. Inc. | 98 | 89 | 89 | 123 | 108 | |
| Pfizer Inc. | 115 | 98 | 72 | 66 | 181 | |
| Regeneron Pharmaceuticals Inc. | 146 | 122 | 138 | 84 | 155 | |
| Thermo Fisher Scientific Inc. | 45 | 41 | 48 | 53 | 49 | |
| Vertex Pharmaceuticals Inc. | 98 | 106 | 103 | 79 | 77 | |
| Average Payables Payment Period, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 90 | 86 | 85 | 86 | 95 | |
| Average Payables Payment Period, Industry | ||||||
| Health Care | 45 | 46 | 49 | 48 | 49 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.66 = 137
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. |
Cash Conversion Cycle
Johnson & Johnson, cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 165 | 154 | 147 | 127 | 120 | |
| Average receivable collection period | 61 | 64 | 62 | 59 | 60 | |
| Average payables payment period | 137 | 132 | 137 | 135 | 122 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 89 | 86 | 72 | 51 | 58 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| AbbVie Inc. | 97 | 82 | 85 | 70 | 95 | |
| Amgen Inc. | 222 | 441 | 273 | 228 | 215 | |
| Bristol-Myers Squibb Co. | 43 | 54 | 42 | 34 | 44 | |
| Danaher Corp. | 76 | 91 | 81 | 63 | 75 | |
| Eli Lilly & Co. | 278 | 261 | 219 | 197 | 245 | |
| Gilead Sciences Inc. | 107 | 132 | 104 | 111 | 140 | |
| Merck & Co. Inc. | 107 | 118 | 93 | 105 | 101 | |
| Pfizer Inc. | 173 | 120 | 63 | 92 | 225 | |
| Regeneron Pharmaceuticals Inc. | 586 | 555 | 584 | 345 | 647 | |
| Thermo Fisher Scientific Inc. | 97 | 101 | 97 | 115 | 107 | |
| Vertex Pharmaceuticals Inc. | 242 | 166 | 112 | 119 | 114 | |
| Cash Conversion Cycle, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 128 | 131 | 97 | 97 | 112 | |
| Cash Conversion Cycle, Industry | ||||||
| Health Care | 36 | 39 | 32 | 34 | 38 | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 165 + 61 – 137 = 89
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 cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024. |