Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Johnson & Johnson, solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Johnson & Johnson debt to equity ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Johnson & Johnson debt to equity ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Johnson & Johnson debt to capital ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Johnson & Johnson debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Johnson & Johnson debt to assets ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Johnson & Johnson debt to assets ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Johnson & Johnson financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Johnson & Johnson interest coverage ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Johnson & Johnson fixed charge coverage ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Debt to Equity
Johnson & Johnson, debt to equity 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) | ||||||
| Loans and notes payable | 5,983) | 3,451) | 12,771) | 3,766) | 2,631) | |
| Long-term debt, excluding current portion | 30,651) | 25,881) | 26,888) | 29,985) | 32,635) | |
| Total debt | 36,634) | 29,332) | 39,659) | 33,751) | 35,266) | |
| Shareholders’ equity | 71,490) | 68,774) | 76,804) | 74,023) | 63,278) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.51 | 0.43 | 0.52 | 0.46 | 0.56 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | 20.19 | 5.73 | 3.67 | 4.98 | 6.58 | |
| Amgen Inc. | 10.23 | 10.37 | 10.64 | 4.97 | 3.51 | |
| Bristol-Myers Squibb Co. | — | 1.35 | 1.27 | 1.24 | 1.34 | |
| Danaher Corp. | 0.32 | 0.34 | 0.39 | 0.49 | 0.53 | |
| Eli Lilly & Co. | 2.37 | 2.34 | 1.52 | 1.88 | 2.94 | |
| Gilead Sciences Inc. | — | 1.09 | 1.19 | 1.27 | 1.73 | |
| Merck & Co. Inc. | — | 0.93 | 0.67 | 0.87 | 1.26 | |
| Pfizer Inc. | — | 0.81 | 0.37 | 0.50 | 0.63 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.10 | 0.12 | 0.14 | 0.24 | |
| Thermo Fisher Scientific Inc. | 0.63 | 0.75 | 0.78 | 0.85 | 0.63 | |
| Vertex Pharmaceuticals Inc. | — | 0.02 | 0.03 | 0.06 | 0.07 | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 0.97 | 0.80 | 0.93 | 1.12 | |
| Debt to Equity, Industry | ||||||
| Health Care | — | 0.81 | 0.72 | 0.79 | 0.90 | |
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
Debt to equity = Total debt ÷ Shareholders’ equity
= 36,634 ÷ 71,490 = 0.51
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Johnson & Johnson debt to equity ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Debt to Equity (including Operating Lease Liability)
Johnson & Johnson, debt to equity (including operating lease liability) 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) | ||||||
| Loans and notes payable | 5,983) | 3,451) | 12,771) | 3,766) | 2,631) | |
| Long-term debt, excluding current portion | 30,651) | 25,881) | 26,888) | 29,985) | 32,635) | |
| Total debt | 36,634) | 29,332) | 39,659) | 33,751) | 35,266) | |
| Operating lease liability | 1,200) | 1,100) | 1,300) | 1,000) | 1,100) | |
| Total debt (including operating lease liability) | 37,834) | 30,432) | 40,959) | 34,751) | 36,366) | |
| Shareholders’ equity | 71,490) | 68,774) | 76,804) | 74,023) | 63,278) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.53 | 0.44 | 0.53 | 0.47 | 0.57 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 20.46 | 5.82 | 3.72 | 5.03 | 6.66 | |
| Amgen Inc. | 10.36 | 10.50 | 10.83 | 5.07 | 3.55 | |
| Bristol-Myers Squibb Co. | — | 1.41 | 1.31 | 1.27 | 1.37 | |
| Danaher Corp. | 0.35 | 0.37 | 0.41 | 0.52 | 0.56 | |
| Eli Lilly & Co. | 2.45 | 2.44 | 1.59 | 1.96 | 3.06 | |
| Gilead Sciences Inc. | — | 1.12 | 1.22 | 1.30 | 1.76 | |
| Merck & Co. Inc. | — | 0.97 | 0.70 | 0.91 | 1.32 | |
| Pfizer Inc. | — | 0.84 | 0.41 | 0.54 | 0.65 | |
| Regeneron Pharmaceuticals Inc. | 0.10 | 0.11 | 0.12 | 0.15 | 0.25 | |
| Thermo Fisher Scientific Inc. | 0.66 | 0.78 | 0.82 | 0.89 | 0.65 | |
| Vertex Pharmaceuticals Inc. | — | 0.05 | 0.06 | 0.10 | 0.11 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 1.00 | 0.83 | 0.96 | 1.15 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | — | 0.86 | 0.78 | 0.84 | 0.96 | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 37,834 ÷ 71,490 = 0.53
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Johnson & Johnson debt to equity ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Debt to Capital
Johnson & Johnson, debt to capital 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) | ||||||
| Loans and notes payable | 5,983) | 3,451) | 12,771) | 3,766) | 2,631) | |
| Long-term debt, excluding current portion | 30,651) | 25,881) | 26,888) | 29,985) | 32,635) | |
| Total debt | 36,634) | 29,332) | 39,659) | 33,751) | 35,266) | |
| Shareholders’ equity | 71,490) | 68,774) | 76,804) | 74,023) | 63,278) | |
| Total capital | 108,124) | 98,106) | 116,463) | 107,774) | 98,544) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.34 | 0.30 | 0.34 | 0.31 | 0.36 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 0.95 | 0.85 | 0.79 | 0.83 | 0.87 | |
| Amgen Inc. | 0.91 | 0.91 | 0.91 | 0.83 | 0.78 | |
| Bristol-Myers Squibb Co. | — | 0.57 | 0.56 | 0.55 | 0.57 | |
| Danaher Corp. | 0.24 | 0.26 | 0.28 | 0.33 | 0.35 | |
| Eli Lilly & Co. | 0.70 | 0.70 | 0.60 | 0.65 | 0.75 | |
| Gilead Sciences Inc. | — | 0.52 | 0.54 | 0.56 | 0.63 | |
| Merck & Co. Inc. | — | 0.48 | 0.40 | 0.46 | 0.56 | |
| Pfizer Inc. | — | 0.45 | 0.27 | 0.33 | 0.39 | |
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.09 | 0.11 | 0.13 | 0.20 | |
| Thermo Fisher Scientific Inc. | 0.39 | 0.43 | 0.44 | 0.46 | 0.39 | |
| Vertex Pharmaceuticals Inc. | — | 0.02 | 0.03 | 0.05 | 0.06 | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 0.49 | 0.44 | 0.48 | 0.53 | |
| Debt to Capital, Industry | ||||||
| Health Care | — | 0.45 | 0.42 | 0.44 | 0.47 | |
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
Debt to capital = Total debt ÷ Total capital
= 36,634 ÷ 108,124 = 0.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Johnson & Johnson debt to capital ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Debt to Capital (including Operating Lease Liability)
Johnson & Johnson, debt to capital (including operating lease liability) 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) | ||||||
| Loans and notes payable | 5,983) | 3,451) | 12,771) | 3,766) | 2,631) | |
| Long-term debt, excluding current portion | 30,651) | 25,881) | 26,888) | 29,985) | 32,635) | |
| Total debt | 36,634) | 29,332) | 39,659) | 33,751) | 35,266) | |
| Operating lease liability | 1,200) | 1,100) | 1,300) | 1,000) | 1,100) | |
| Total debt (including operating lease liability) | 37,834) | 30,432) | 40,959) | 34,751) | 36,366) | |
| Shareholders’ equity | 71,490) | 68,774) | 76,804) | 74,023) | 63,278) | |
| Total capital (including operating lease liability) | 109,324) | 99,206) | 117,763) | 108,774) | 99,644) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.35 | 0.31 | 0.35 | 0.32 | 0.36 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.95 | 0.85 | 0.79 | 0.83 | 0.87 | |
| Amgen Inc. | 0.91 | 0.91 | 0.92 | 0.84 | 0.78 | |
| Bristol-Myers Squibb Co. | — | 0.58 | 0.57 | 0.56 | 0.58 | |
| Danaher Corp. | 0.26 | 0.27 | 0.29 | 0.34 | 0.36 | |
| Eli Lilly & Co. | 0.71 | 0.71 | 0.61 | 0.66 | 0.75 | |
| Gilead Sciences Inc. | — | 0.53 | 0.55 | 0.56 | 0.64 | |
| Merck & Co. Inc. | — | 0.49 | 0.41 | 0.48 | 0.57 | |
| Pfizer Inc. | — | 0.46 | 0.29 | 0.35 | 0.39 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.10 | 0.11 | 0.13 | 0.20 | |
| Thermo Fisher Scientific Inc. | 0.40 | 0.44 | 0.45 | 0.47 | 0.40 | |
| Vertex Pharmaceuticals Inc. | — | 0.04 | 0.06 | 0.09 | 0.10 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 0.50 | 0.45 | 0.49 | 0.54 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | — | 0.46 | 0.44 | 0.46 | 0.49 | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 37,834 ÷ 109,324 = 0.35
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Johnson & Johnson debt to capital ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Debt to Assets
Johnson & Johnson, debt to assets 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) | ||||||
| Loans and notes payable | 5,983) | 3,451) | 12,771) | 3,766) | 2,631) | |
| Long-term debt, excluding current portion | 30,651) | 25,881) | 26,888) | 29,985) | 32,635) | |
| Total debt | 36,634) | 29,332) | 39,659) | 33,751) | 35,266) | |
| Total assets | 180,104) | 167,558) | 187,378) | 182,018) | 174,894) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.20 | 0.18 | 0.21 | 0.19 | 0.20 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.50 | 0.44 | 0.46 | 0.52 | 0.57 | |
| Amgen Inc. | 0.65 | 0.67 | 0.60 | 0.54 | 0.52 | |
| Bristol-Myers Squibb Co. | — | 0.42 | 0.41 | 0.41 | 0.43 | |
| Danaher Corp. | 0.21 | 0.22 | 0.23 | 0.27 | 0.28 | |
| Eli Lilly & Co. | 0.43 | 0.39 | 0.33 | 0.35 | 0.36 | |
| Gilead Sciences Inc. | — | 0.40 | 0.40 | 0.39 | 0.46 | |
| Merck & Co. Inc. | — | 0.33 | 0.28 | 0.31 | 0.35 | |
| Pfizer Inc. | — | 0.32 | 0.18 | 0.21 | 0.26 | |
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.08 | 0.09 | 0.11 | 0.16 | |
| Thermo Fisher Scientific Inc. | 0.32 | 0.35 | 0.35 | 0.37 | 0.31 | |
| Vertex Pharmaceuticals Inc. | — | 0.02 | 0.03 | 0.04 | 0.05 | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 0.34 | 0.31 | 0.32 | 0.36 | |
| Debt to Assets, Industry | ||||||
| Health Care | — | 0.29 | 0.27 | 0.28 | 0.31 | |
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
Debt to assets = Total debt ÷ Total assets
= 36,634 ÷ 180,104 = 0.20
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Johnson & Johnson debt to assets ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Debt to Assets (including Operating Lease Liability)
Johnson & Johnson, debt to assets (including operating lease liability) 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) | ||||||
| Loans and notes payable | 5,983) | 3,451) | 12,771) | 3,766) | 2,631) | |
| Long-term debt, excluding current portion | 30,651) | 25,881) | 26,888) | 29,985) | 32,635) | |
| Total debt | 36,634) | 29,332) | 39,659) | 33,751) | 35,266) | |
| Operating lease liability | 1,200) | 1,100) | 1,300) | 1,000) | 1,100) | |
| Total debt (including operating lease liability) | 37,834) | 30,432) | 40,959) | 34,751) | 36,366) | |
| Total assets | 180,104) | 167,558) | 187,378) | 182,018) | 174,894) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.21 | 0.18 | 0.22 | 0.19 | 0.21 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.50 | 0.45 | 0.46 | 0.53 | 0.58 | |
| Amgen Inc. | 0.66 | 0.67 | 0.61 | 0.56 | 0.53 | |
| Bristol-Myers Squibb Co. | — | 0.44 | 0.42 | 0.42 | 0.44 | |
| Danaher Corp. | 0.22 | 0.23 | 0.25 | 0.28 | 0.29 | |
| Eli Lilly & Co. | 0.44 | 0.41 | 0.34 | 0.36 | 0.37 | |
| Gilead Sciences Inc. | — | 0.41 | 0.41 | 0.40 | 0.47 | |
| Merck & Co. Inc. | — | 0.34 | 0.29 | 0.33 | 0.37 | |
| Pfizer Inc. | — | 0.33 | 0.20 | 0.23 | 0.27 | |
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.09 | 0.11 | 0.16 | |
| Thermo Fisher Scientific Inc. | 0.34 | 0.37 | 0.37 | 0.38 | 0.33 | |
| Vertex Pharmaceuticals Inc. | — | 0.04 | 0.05 | 0.07 | 0.08 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 0.35 | 0.32 | 0.34 | 0.37 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | — | 0.31 | 0.29 | 0.30 | 0.33 | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 37,834 ÷ 180,104 = 0.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Johnson & Johnson debt to assets ratio (including operating lease liability) improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level. |
Financial Leverage
Johnson & Johnson, financial leverage 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) | ||||||
| Total assets | 180,104) | 167,558) | 187,378) | 182,018) | 174,894) | |
| Shareholders’ equity | 71,490) | 68,774) | 76,804) | 74,023) | 63,278) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.52 | 2.44 | 2.44 | 2.46 | 2.76 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | 40.65 | 13.00 | 8.04 | 9.51 | 11.51 | |
| Amgen Inc. | 15.63 | 15.59 | 17.79 | 9.13 | 6.69 | |
| Bristol-Myers Squibb Co. | — | 3.23 | 3.12 | 3.04 | 3.13 | |
| Danaher Corp. | 1.57 | 1.58 | 1.68 | 1.84 | 1.92 | |
| Eli Lilly & Co. | 5.55 | 5.94 | 4.65 | 5.44 | 8.27 | |
| Gilead Sciences Inc. | — | 2.72 | 2.97 | 3.23 | 3.76 | |
| Merck & Co. Inc. | — | 2.84 | 2.37 | 2.77 | 3.62 | |
| Pfizer Inc. | — | 2.54 | 2.06 | 2.35 | 2.44 | |
| Regeneron Pharmaceuticals Inc. | 1.29 | 1.27 | 1.29 | 1.36 | 1.56 | |
| Thermo Fisher Scientific Inc. | 1.96 | 2.11 | 2.21 | 2.33 | 2.00 | |
| Vertex Pharmaceuticals Inc. | — | 1.29 | 1.30 | 1.33 | 1.35 | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 2.85 | 2.62 | 2.86 | 3.16 | |
| Financial Leverage, Industry | ||||||
| Health Care | — | 2.79 | 2.67 | 2.77 | 2.94 | |
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
Financial leverage = Total assets ÷ Shareholders’ equity
= 180,104 ÷ 71,490 = 2.52
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Johnson & Johnson financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level. |
Interest Coverage
Johnson & Johnson, interest coverage 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) | ||||||
| Net earnings | 14,066) | 35,153) | 17,941) | 20,878) | 14,714) | |
| Less: Net earnings from discontinued operations, net of tax | —) | 21,827) | —) | —) | —) | |
| Add: Income tax expense | 2,621) | 1,736) | 3,784) | 1,898) | 1,783) | |
| Add: Interest expense, net of portion capitalized | 755) | 772) | 276) | 183) | 201) | |
| Earnings before interest and tax (EBIT) | 17,442) | 15,834) | 22,001) | 22,959) | 16,698) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 23.10 | 20.51 | 79.71 | 125.46 | 83.07 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 2.32 | 3.81 | 7.04 | 6.36 | 2.38 | |
| Amgen Inc. | 2.46 | 3.73 | 6.22 | 6.60 | 7.44 | |
| Bristol-Myers Squibb Co. | — | 8.24 | 7.26 | 7.07 | -3.84 | |
| Danaher Corp. | 17.71 | 18.64 | 40.30 | 32.92 | 17.35 | |
| Eli Lilly & Co. | 17.24 | 14.49 | 21.53 | 19.12 | 21.11 | |
| Gilead Sciences Inc. | — | 8.27 | 7.22 | 9.27 | 2.70 | |
| Merck & Co. Inc. | — | 2.65 | 18.09 | 18.22 | 11.58 | |
| Pfizer Inc. | — | 1.48 | 29.05 | 19.83 | 6.17 | |
| Regeneron Pharmaceuticals Inc. | 87.59 | 58.52 | 82.80 | 163.75 | 67.97 | |
| Thermo Fisher Scientific Inc. | 6.03 | 5.54 | 11.56 | 17.49 | 14.07 | |
| Vertex Pharmaceuticals Inc. | — | 100.32 | 78.23 | 45.40 | 54.60 | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 6.43 | 15.40 | 14.91 | 7.56 | |
| Interest Coverage, Industry | ||||||
| Health Care | — | 7.09 | 12.71 | 12.24 | 7.71 | |
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
Interest coverage = EBIT ÷ Interest expense
= 17,442 ÷ 755 = 23.10
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Johnson & Johnson interest coverage ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Fixed Charge Coverage
Johnson & Johnson, fixed charge coverage 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) | ||||||
| Net earnings | 14,066) | 35,153) | 17,941) | 20,878) | 14,714) | |
| Less: Net earnings from discontinued operations, net of tax | —) | 21,827) | —) | —) | —) | |
| Add: Income tax expense | 2,621) | 1,736) | 3,784) | 1,898) | 1,783) | |
| Add: Interest expense, net of portion capitalized | 755) | 772) | 276) | 183) | 201) | |
| Earnings before interest and tax (EBIT) | 17,442) | 15,834) | 22,001) | 22,959) | 16,698) | |
| Add: Operating lease costs | 200) | 200) | 300) | 300) | 300) | |
| Earnings before fixed charges and tax | 17,642) | 16,034) | 22,301) | 23,259) | 16,998) | |
| Interest expense, net of portion capitalized | 755) | 772) | 276) | 183) | 201) | |
| Operating lease costs | 200) | 200) | 300) | 300) | 300) | |
| Fixed charges | 955) | 972) | 576) | 483) | 501) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 18.47 | 16.50 | 38.72 | 48.16 | 33.93 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | 2.24 | 3.59 | 6.54 | 5.90 | 2.28 | |
| Amgen Inc. | 2.37 | 3.55 | 5.52 | 5.67 | 6.48 | |
| Bristol-Myers Squibb Co. | — | 6.69 | 6.30 | 6.01 | -3.08 | |
| Danaher Corp. | 9.05 | 9.55 | 13.41 | 10.85 | 7.10 | |
| Eli Lilly & Co. | 13.81 | 10.98 | 15.17 | 13.33 | 15.06 | |
| Gilead Sciences Inc. | — | 7.18 | 6.30 | 8.15 | 2.45 | |
| Merck & Co. Inc. | — | 2.27 | 13.69 | 13.08 | 8.47 | |
| Pfizer Inc. | — | 1.34 | 18.79 | 14.22 | 4.98 | |
| Regeneron Pharmaceuticals Inc. | 53.13 | 46.55 | 68.67 | 138.96 | 57.70 | |
| Thermo Fisher Scientific Inc. | 5.01 | 4.61 | 8.12 | 12.19 | 10.30 | |
| Vertex Pharmaceuticals Inc. | — | 48.66 | 47.97 | 29.62 | 39.35 | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | — | 5.40 | 11.85 | 11.49 | 6.11 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | — | 5.52 | 9.02 | 8.67 | 5.70 | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 17,642 ÷ 955 = 18.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Johnson & Johnson fixed charge coverage ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |