Johnson & Johnson (Johnson & Johnson) Inventory Turnover

: 0.61 (As of Dec. 2023)

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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Johnson & Johnson's Cost of Goods Sold for the three months ended in Dec. 2023 was $6,798 Mil. Johnson & Johnson's Average Total Inventories for the quarter that ended in Dec. 2023 was $11,190 Mil. Johnson & Johnson's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.61.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Johnson & Johnson's Days Inventory for the three months ended in Dec. 2023 was 150.20.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Johnson & Johnson's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.52.

Johnson & Johnson Inventory Turnover Historical Data

The historical data trend for Johnson & Johnson's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Johnson & Johnson Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

3.13

3.10

2.37

2.38

2.48

Johnson & Johnson Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Inventory Turnover																0.73	0.64	0.55	0.61	0.58

Johnson & Johnson Inventory Turnover Calculation

Johnson & Johnson's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	26553	/ (	(10268	+	11181)	/	2 )
=	26553	/	10724.5
=	2.48

Johnson & Johnson's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	6798	/ (	(11198	+	11181)	/	2 )
=	6798	/	11189.5
=	0.61

Johnson & Johnson (NYSE:JNJ) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Johnson & Johnson's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	11189.5	/	6798	*	365 / 4
	=	150.20

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Johnson & Johnson's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	11189.5	/	21395
	=	0.52

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Johnson & Johnson Inventory Turnover Related Terms

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Johnson & Johnson (Johnson & Johnson) Business Description

Industry

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Address

One Johnson and Johnson Plaza, New Brunswick, NJ, USA, 08933

Website

https://www.jnj.com

Johnson & Johnson is the world's largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women's health. The consumer group is being divested in 2023 under the new name Kenvue. Geographically, just over half of total revenue is generated in the United States.

Executives

Timothy Schmid	officer: EVP, WW Chair, MedTech	ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
William Hait	officer: See Remarks	ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Peter Fasolo	officer: VP, Worldwide Human Resources	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Kathryn E Wengel	officer: EVP, Chief GSC Officer	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
John C Reed	officer: EVP, Pharmaceuticals R&D	ONE JOHNSON & JOHNSON PLAZA, WHQ 2134, NEW BRUNSWICK NJ 08933
James D. Swanson	officer: EVP, Chief Information Officer	ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Paula A Johnson	director	22 CHERRY HILL DRIVE, DANVERS MA 01923
Joseph J Wolk	officer: Exec VP, CFO	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Ashley Mcevoy	officer: EVP, WW Chair, Medical Devices	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Jennifer L Taubert	officer: EVP, WW Chair, Pharmaceuticals	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Robert J Decker	officer: Controller, CAO	ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Thibaut Mongon	officer: Exec VP, WW Chair, Consumer	JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Elizabeth Forminard	officer: Executive VP, General Counsel	ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Darius Adamczyk	director	855 S. MINT STREET, CHARLOTTE NC 28202
Vanessa Broadhurst	officer: EVP, Global Corp Aff.	ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933