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Johnson & Johnson key statistics and ratios

In fiscal 2025, Johnson & Johnson had return on equity of 35.0%, a net margin of 28.5%, debt equal to 61.2% of equity and a current ratio of 1.03. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2009Jan 20102010Jan 20112011Jan 20122012Dec 20122013Dec 20132014Dec 20142015Jan 20162016Jan 20172017Dec 20172018Dec 20182019Dec 20192020Jan 20212021Jan 20222022Jan 20232023Dec 20232024Dec 20242025Dec 2025LTMSept 2026
Gross margin70.2%69.5%68.7%67.8%68.7%69.4%69.3%69.7%66.7%66.8%66.4%65.6%70.3%69.3%68.8%69.1%67.9%67.6%
Operating margin26.8%28.7%21.2%22.2%23.0%29.0%————————————
Net margin19.8%21.7%14.9%16.1%19.4%22.0%22.0%23.0%1.7%18.8%18.4%17.8%26.5%22.4%41.3%15.8%28.5%16.2%
Free-cash-flow margin23.0%22.7%17.5%18.5%19.4%20.2%23.0%21.6%23.3%22.7%24.3%24.4%25.1%21.5%21.4%22.3%20.9%20.7%
Return on equity24.2%24.9%17.0%17.8%19.9%22.7%21.9%23.4%2.0%25.5%25.4%24.0%30.4%23.8%48.3%20.1%35.0%19.7%
Return on assets13.0%13.5%8.9%9.2%10.9%12.4%11.7%12.0%0.9%9.9%9.7%8.8%11.7%9.7%19.8%8.1%14.1%8.1%
Asset turnover0.650.620.600.570.560.570.530.520.510.530.530.500.440.430.480.510.500.50
Current ratio1.822.052.381.902.202.232.172.471.411.471.261.211.350.991.161.111.031.02
Debt to equity28.8%29.7%34.5%25.0%24.6%26.9%27.9%40.9%60.0%55.4%46.6%58.6%48.5%53.6%44.8%53.7%61.2%54.8%
Interest cover (operating income ÷ interest)36.8x38.9x24.1x28.1x34.0x40.5x————————————
Effective tax rate22.1%21.3%21.8%23.7%10.6%20.6%19.7%16.5%92.6%15.0%12.7%10.8%7.2%15.4%11.5%15.7%17.7%9.3%
R&D as % of revenue11.3%11.1%11.6%11.4%11.5%11.4%12.9%12.7%13.9%13.2%13.8%14.7%18.1%17.7%17.7%19.4%15.6%16.2%
SG&A as % of revenue32.0%31.5%32.2%31.0%30.6%29.5%30.3%27.9%28.1%27.6%27.0%26.7%25.5%25.3%25.3%25.7%25.1%25.7%
Capital spending as % of revenue3.8%3.9%4.4%4.4%5.0%5.0%4.9%4.5%4.3%4.5%4.3%4.1%4.6%5.0%5.3%5.0%5.1%5.6%
Free cash flow ÷ net income115.8%105.0%117.9%114.8%99.9%91.9%104.5%94.0%>999%121.1%131.7%137.2%94.6%95.8%51.9%141.1%73.5%127.9%
Dividends ÷ net income43.4%43.5%63.6%60.9%52.7%47.6%53.0%52.1%687.9%62.1%65.6%71.2%52.8%65.1%33.5%84.1%46.2%79.0%
Dividends and buybacks ÷ free cash flow52.5%61.4%76.1%156.7%78.3%99.3%83.6%113.2%86.1%82.9%83.7%67.9%73.3%103.1%92.2%71.8%93.1%100.0%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

2 of 6 checks passed · September 27, 2026
What it owns · $197.4bn
Short-term assets $56.4bnLonger-term assets $141.1bn
What it owes, and who funded it · $197.4bn
Short-term liabilities $55.5bnLonger-term liabilities $60.4bnShareholders' equity $81.5bn
  • Short-term assets cover short-term liabilities $56.4bn of assets due within a year against $55.5bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities $56.4bn short-term assets against $60.4bn of longer-dated liabilities.
  • More cash than debt $16.9bn of cash against $44.7bn of debt.
  • Debt below 40% of shareholders' equity Debt is 55% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 39% to 55% over five years.
  • A year's operating cash flow covers at least 20% of debt $26.2bn of operating cash flow against $44.7bn of debt.
  • Operating profit covers interest at least five times over Interest not separately reported. Not assessable.

From Johnson & Johnson's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

92 /100

Strong moat

How hard Johnson & Johnson's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 20 / 20

    Cash operating profit has been a median 20.6% of total assets over 10 years.

  • Pricing power 20 / 20

    Gross margin has been a median 67.8%, moving by 1.6 percentage points (standard deviation) across 10 years.

  • Durability 18 / 20

    Operating margin has been a median 24.4%; its worst year was 20.9%.

  • Cash conversion 20 / 20

    Free cash flow was positive in 10 of 10 years, at a median 23.2% of revenue.

  • Discipline 20 / 20

    The diluted share count fell 8.6% over five years; stock-based pay has been a median 1.3% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (97 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

Head to head: JNJ vs LLYJNJ vs MRKJNJ vs PFE

More: Pharmaceuticals stocks compared, Health Care sector, rankings of US companies

Figures from Johnson & Johnson's SEC filings (10-K and 10-Q), retrieved October 23, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Johnson & Johnson.