Johnson & JohnsonJNJ +3.99%85 Interest Coverage is 23.51 as of Mar. 2026, which is 18% below its 10-year median of 28.65. GuruFocus rates JNJ with a GF Score™ of 85/100 and a GF Value™ of $190.57 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 685 Drug Manufacturers companies, Johnson & Johnson ranks better than 62.04% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Johnson & Johnson's
Operating Income
for the
three
months ended in Mar. 2026 was $6,395 Mil. Johnson & Johnson's Interest Expense for the
three
months ended in Mar. 2026 was $-272 Mil.
Johnson & Johnson's interest coverage for the quarter that ended in Mar. 2026 was 23.51.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Johnson & Johnson's Interest Coverage or its related term are showing as below:
JNJ'
s Interest Coverage Range Over the Past 10 Years
Min: 20.23 Med: 28.65 Max: 114.44
Current: 24.82
JNJ's Interest Coverage is ranked better than 62.04% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs JNJ: 24.82
Johnson & Johnson (NYSE:JNJ) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Johnson & Johnson Interest Coverage Related Terms
Johnson & Johnson Interest Coverage Historical Data
* Premium members only.
The historical data trend for Johnson & Johnson's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
JNJ vs ABBV, MRK, AMGN: Interest Coverage Comparison
For the Drug Manufacturers - General subindustry, Johnson & Johnson's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Johnson & Johnson Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Johnson & Johnson's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Johnson & Johnson (JNJ) has a Interest Coverage of 23.51 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Johnson & Johnson and its competitors. This is 18% below median its historical median of 28.65. Over the past decade, Johnson & Johnson's Interest Coverage has ranged from 20.23 to 114.44. According to the industry distribution chart, Johnson & Johnson ranks #260 out of 685 companies in the Drug Manufacturers industry, placing it in the top 38%.
Is Johnson & Johnson's Interest Coverage too high?
Johnson & Johnson's current Interest Coverage of 23.51 is 18% below median its 10-year median of 28.65. Over the past 10 years, this metric has ranged from a low of 20.23 to a high of 114.44. The Drug Manufacturers industry median Interest Coverage is 12.78. Johnson & Johnson's value of 23.51 is 84% above this industry median. Based on the distribution chart, Johnson & Johnson ranks #260 out of 685 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Johnson & Johnson has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson & Johnson's Interest Coverage compare to ABBV and MRK?
According to the Drug Manufacturers industry distribution chart, Johnson & Johnson ranks #260 out of 685 companies for Interest Coverage. This puts Johnson & Johnson in the upper half of its industry. The industry median Interest Coverage is 12.78. Johnson & Johnson's value of 23.51 is 84% above this benchmark. Historically, Johnson & Johnson's own Interest Coverage has ranged from 20.23 to 114.44 over the past decade. While the company's 10-year median is 28.65 vs. the industry median of 12.78, Johnson & Johnson has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.78, based on 685 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Johnson & Johnson's current Interest Coverage of 23.51 is 84% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Johnson & Johnson and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson & Johnson's current Interest Coverage is 23.51, which is 18% below median its own 10-year median of 28.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson & Johnson stock overvalued right now?
Based on GuruFocus' analysis, Johnson & Johnson (JNJ) is currently considered Significantly Overvalued. The stock's GF Value™ is $190.57, compared to a current price of $254.66 — trading 33.6% above its estimated fair value. The current Interest Coverage is 23.51, which is 18% below median its 10-year median of 28.65 and 84% above the Drug Manufacturers industry median of 12.78. Johnson & Johnson's overall GF Score™ is 85/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Johnson & Johnson (JNJ), the current Interest Coverage is 23.51 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Johnson & Johnson (JNJ) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson & Johnson stock appears to be overvalued.
The current stock price of $254.66 is trading 33.6% above its estimated GF Value™ of $190.57.
GuruFocus considers Johnson & Johnson to be Significantly Overvalued.
Key valuation signals for JNJ:
Interest Coverage: 23.51 (18% below median its 10-year median of 28.65)
GF Value™: $190.57 vs. price of $254.66 (33.6% above fair value)
Industry Position: 84% above the Drug Manufacturers median (#260 of 685)
No single metric tells the full story. See the JNJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson & Johnson is the world's largest and most diverse healthcare firm. It has two divisions: innovative medicine and medtech. These now represent all of the company's sales following the divestment of the consumer business, Kenvue, in 2023. After restructurings in 2023-24, the drug division focuses on three main therapeutic areas: immunology, oncology, and neurology. Geographically, just over half of total revenue is generated in the United States.
85GF Score
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