Johnson & Johnson (JNJ) Financial Ratios
30 years of historical data (1995–2024) · Healthcare · Drug Manufacturers - General
EV/EBITDA
↓
18.86
↑+23% vs avg
5yr avg: 15.32
30Y Low8.7·High19.9
P/FCF
↓
27.40
↑+23% vs avg
5yr avg: 22.22
30Y Low12.3·High39.0
P/B Ratio
↓
7.67
↑+29% vs avg
5yr avg: 5.94
30Y Low3.0·High8.8
ROE
↓
20.1%
↑-32% vs avg
5yr avg: 29.3%
30Y Low2%·High48%
Debt/EBITDA
↓
1.24
+2% vs avg
5yr avg: 1.22
30Y Low0.2·High1.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
JNJ Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Johnson & Johnson trades at 39.0x earnings, 72% above its 5-year average of 22.6x, sitting at the 97th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.2x, the stock trades at a premium of 76%. On a free-cash-flow basis, the stock trades at 27.4x P/FCF, 23% above the 5-year average of 22.2x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $543.6B | $352.4B | $401.3B | $470.6B | $457.4B | $420.3B | $391.6B | $352.1B | $383.6B | $321.3B | $288.9B |
| Enterprise Value | $556.2B | $364.9B | $408.8B | $497.3B | $476.7B | $441.6B | $401.9B | $364.5B | $400.3B | $329.5B | $295.1B |
| P/E Ratio → | 38.96 | 25.05 | 11.42 | 26.25 | 21.90 | 28.56 | 25.91 | 23.00 | 297.28 | 19.43 | 18.74 |
| P/S Ratio | 6.12 | 3.97 | 4.71 | 5.88 | 5.81 | 5.09 | 4.77 | 4.32 | 5.02 | 4.47 | 4.12 |
| P/B Ratio | 7.67 | 4.93 | 5.84 | 6.13 | 6.18 | 6.64 | 6.58 | 5.89 | 6.38 | 4.56 | 4.06 |
| P/FCF | 27.40 | 17.76 | 21.99 | 27.38 | 23.15 | 20.82 | 19.66 | 19.00 | 21.58 | 20.67 | 18.27 |
| P/OCF | 22.40 | 14.52 | 17.61 | 22.20 | 19.54 | 17.86 | 16.72 | 15.86 | 18.22 | 17.12 | 14.99 |
P/E links to full P/E history page with 30-year chart
JNJ EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Johnson & Johnson's enterprise value stands at 18.9x EBITDA, 23% above its 5-year average of 15.3x. The Healthcare sector median is 14.0x, placing the stock at a 35% premium on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.11 | 4.80 | 6.22 | 6.05 | 5.35 | 4.90 | 4.47 | 5.24 | 4.58 | 4.21 |
| EV / EBITDA | 18.86 | 12.37 | 13.23 | 17.77 | 16.83 | 16.38 | 14.37 | 12.97 | 16.31 | 13.37 | 13.39 |
| EV / EBIT | 25.11 | 20.92 | 25.82 | 25.33 | 24.62 | 26.45 | 22.78 | 19.18 | 21.52 | 16.05 | 14.94 |
| EV / FCF | — | 18.39 | 22.40 | 28.94 | 24.13 | 21.87 | 20.18 | 19.67 | 22.52 | 21.20 | 18.66 |
JNJ Profitability
Margins and return-on-capital ratios measuring operating efficiency
Johnson & Johnson earns an operating margin of 24.9%. Operating margins have compressed from 26.3% to 24.9% over the past 3 years, signaling potential cost pressures or competitive headwinds. ROE of 20.1% indicates solid capital efficiency. ROIC of 20.7% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 69.1% | 69.1% | 68.8% | 69.3% | 70.3% | 65.6% | 66.4% | 66.8% | 66.7% | 69.7% | 69.3% |
| Operating Margin | 24.9% | 24.9% | 27.5% | 26.3% | 26.6% | 23.9% | 25.6% | 26.0% | 24.7% | 29.1% | 26.1% |
| Net Profit Margin | 15.8% | 15.8% | 41.3% | 22.4% | 26.5% | 17.8% | 18.4% | 18.8% | 1.7% | 23.0% | 22.0% |
Return on Capital
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.1% | 20.1% | 48.3% | 23.8% | 30.4% | 24.0% | 25.4% | 25.5% | 2.0% | 23.4% | 21.9% |
| ROA | 8.1% | 8.1% | 19.8% | 9.7% | 11.7% | 8.8% | 9.7% | 9.9% | 0.9% | 12.0% | 11.7% |
| ROIC | 20.7% | 20.7% | 19.5% | 16.0% | 17.7% | 19.2% | 22.2% | 21.3% | 18.2% | 20.1% | 18.1% |
| ROCE | 17.6% | 17.6% | 18.5% | 15.7% | 15.6% | 15.5% | 17.2% | 17.0% | 15.6% | 18.9% | 17.3% |
JNJ Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Johnson & Johnson carries a Debt/EBITDA ratio of 1.2x, which is manageable (60% below the sector average of 3.1x). Net debt stands at $12.5B ($36.6B total debt minus $24.1B cash). Interest coverage of 29.3x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.51 | 0.51 | 0.43 | 0.52 | 0.46 | 0.56 | 0.47 | 0.51 | 0.57 | 0.39 | 0.28 |
| Debt / EBITDA | 1.24 | 1.24 | 0.95 | 1.42 | 1.19 | 1.31 | 0.99 | 1.08 | 1.41 | 1.10 | 0.90 |
| Net Debt / Equity | — | 0.18 | 0.11 | 0.35 | 0.26 | 0.34 | 0.17 | 0.21 | 0.28 | 0.12 | 0.09 |
| Net Debt / EBITDA | 0.42 | 0.42 | 0.24 | 0.96 | 0.68 | 0.79 | 0.37 | 0.44 | 0.68 | 0.33 | 0.28 |
| Debt / FCF | — | 0.63 | 0.41 | 1.56 | 0.97 | 1.05 | 0.52 | 0.67 | 0.94 | 0.52 | 0.39 |
| Interest Coverage | 29.34 | 29.34 | 30.32 | 76.13 | 114.44 | 98.17 | 65.94 | 21.07 | 20.23 | 28.78 | 33.13 |
JNJ Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.11x means Johnson & Johnson can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 0.99x to 1.11x over the past 3 years.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.11 | 1.11 | 1.16 | 0.99 | 1.35 | 1.21 | 1.26 | 1.47 | 1.41 | 2.47 | 2.17 |
| Quick Ratio | 0.86 | 0.86 | 0.91 | 0.81 | 1.12 | 0.99 | 1.01 | 1.20 | 1.12 | 2.16 | 1.88 |
| Cash Ratio | 0.49 | 0.49 | 0.50 | 0.40 | 0.70 | 0.59 | 0.54 | 0.63 | 0.60 | 1.59 | 1.38 |
| Asset Turnover | — | 0.49 | 0.51 | 0.43 | 0.43 | 0.47 | 0.52 | 0.53 | 0.49 | 0.51 | 0.53 |
| Inventory Turnover | 2.21 | 2.21 | 2.37 | 2.40 | 2.25 | 3.04 | 3.05 | 3.15 | 2.90 | 2.68 | 2.67 |
| Days Sales Outstanding | — | 77.78 | 63.75 | 77.18 | 88.00 | 60.00 | 64.41 | 63.08 | 64.41 | 59.40 | 55.91 |
JNJ Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Johnson & Johnson returns 2.6% to shareholders annually — split between a 2.2% dividend yield and 0.4% buyback yield. The payout ratio of 84.1% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 2.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.2% | 3.4% | 2.9% | 2.5% | 2.4% | 2.5% | 2.5% | 2.7% | 2.3% | 2.7% | 2.8% |
| Payout Ratio | 84.1% | 84.1% | 33.5% | 65.1% | 52.8% | 71.2% | 65.6% | 62.1% | 687.9% | 52.1% | 53.0% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.6% | 4.0% | 8.8% | 3.8% | 4.6% | 3.5% | 3.9% | 4.3% | 0.3% | 5.1% | 5.3% |
| FCF Yield | 3.6% | 5.6% | 4.5% | 3.7% | 4.3% | 4.8% | 5.1% | 5.3% | 4.6% | 4.8% | 5.5% |
| Buyback Yield | 0.4% | 0.7% | 1.3% | 1.3% | 0.8% | 0.8% | 1.7% | 1.7% | 1.7% | 2.8% | 1.8% |
| Total Shareholder Yield | 2.6% | 4.0% | 4.2% | 3.8% | 3.2% | 3.3% | 4.3% | 4.4% | 4.0% | 5.5% | 4.7% |
| Shares Outstanding | — | $2.4B | $2.6B | $2.7B | $2.7B | $2.7B | $2.7B | $2.7B | $2.7B | $2.8B | $2.8B |
Peer Comparison
Compare JNJ with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 JNJYou | $544B | 39.0 | 18.9 | 27.4 | 69.1% | 24.9% | 20.1% | 20.7% | 1.2 |
 ABT | $152B | 11.4 | 15.9 | 23.9 | 50.8% | 16.3% | 30.9% | 9.9% | 1.5 |
 PFE | $150B | 19.4 | 10.7 | 16.6 | 70.3% | 24.7% | 8.9% | 7.5% | 3.3 |
 MRK | $279B | 15.5 | 10.8 | 22.6 | 72.0% | 36.2% | 36.9% | 22.0% | 1.7 |
 LLY | $934B | 43.1 | 31.0 | 104.1 | 83.8% | 45.6% | 101.2% | 41.8% | 1.4 |
 BMY | $116B | 16.5 | 9.3 | 9.0 | 67.6% | 26.3% | 40.4% | 16.9% | 2.8 |
 ABBV | $365B | 87.0 | 15.2 | 20.5 | 70.2% | 32.8% | 6214.7% | 23.9% | 2.4 |
 NVS | $278B | 20.2 | 13.5 | 15.7 | 75.0% | 31.2% | 31.0% | 18.8% | 1.7 |
 SYK | $113B | 35.1 | 20.4 | 26.4 | 64.0% | 19.5% | 15.1% | 11.4% | 2.4 |
 MDT | $100B | 21.5 | 14.3 | 19.2 | 65.3% | 17.8% | 9.4% | 6.0% | 3.2 |
 BSX | $83B | 28.9 | 25.1 | 22.7 | 69.0% | 19.8% | 12.4% | 8.8% | 3.3 |
| Healthcare Median | — | 22.2 | 14.0 | 18.6 | 64.1% | -5.3% | -34.0% | -11.2% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonJNJ — Frequently Asked Questions
Quick answers to the most common questions about buying JNJ stock.
What is Johnson & Johnson's P/E ratio?
Johnson & Johnson's current P/E ratio is 39.0x. The historical average is 22.4x. This places it at the 97th percentile of its historical range.
What is Johnson & Johnson's EV/EBITDA?
Johnson & Johnson's current EV/EBITDA is 18.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
What is Johnson & Johnson's ROE?
Johnson & Johnson's return on equity (ROE) is 20.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 25.4%.
Is JNJ stock overvalued?
Based on historical data, Johnson & Johnson is trading at a P/E of 39.0x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Johnson & Johnson's dividend yield?
Johnson & Johnson's current dividend yield is 2.16% with a payout ratio of 84.1%.
What are Johnson & Johnson's profit margins?
Johnson & Johnson has 69.1% gross margin and 24.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Johnson & Johnson have?
Johnson & Johnson's Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.