JNJCAUTIOUS

Current Ratio

1.03x

Updated 32h ago

Sector Performance

35th percentile

JNJ

1.03x

Sector Median

1.20x

Sector Avg

2.57x

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Deep Analysis

The current ratio of 1.03x means that for every $1 of short-term liabilities, Johnson & Johnson holds $1.03 in current assets that can be quickly turned into cash, indicating a thin liquidity cushion.

This is below the sector median of 1.21x, placing JNJ at the 35th percentile among its peer group—meaning 65% of peers have a higher current ratio. No year-over-year or quarter-over-quarter changes are available (both N/A), and with only a single data point, no trend direction can be determined. The combination of a below-median ratio and the absence of trend data introduces uncertainty: the company’s low liquidity buffer could pose short-term risk if obligations come due, but whether this is a stable or deteriorating condition is unknown. This metric directly supports the overall CAUTIOUS verdict, as JNJ has less short-term financial flexibility than the typical sector peer.

Frequently Asked Questions

What does the Current Ratio tell investors about JNJ?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are JNJ's closest peers by Current Ratio?

The closest peers by Current Ratio include: SPG (0.41x), CHTR (0.40x), USB (0.40x), GEN (0.40x), DRI (0.39x).

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

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JNJ

1.03x

Sector Median

1.20x

Sector Avg

2.57x

How JNJ's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.