Quick Ratio

The quick ratio measures a company’s ability to pay its short-term debts using its most liquid assets (cash, marketable securities, and receivables).

JNJ’s current quick ratio of 0.68x means it has $0.68 of these liquid assets for every $1 of current liabilities. Compared to its sector peers, JNJ sits at the 48th percentile, slightly below the sector median of 0.72x. No trend data is available because the year-over-year change and quarter-over-quarter change are both listed as N/A, with only a single historical value of 0.68x provided. The level of 0.68x is below 1.0, which typically indicates the company may struggle to cover short-term obligations without relying on inventory sales or external financing. However, without a trend, it is impossible to gauge whether this position is improving or deteriorating. This metric supports the overall CAUTIOUS verdict, as the below-median quick ratio points to a weaker-than-average short-term liquidity position that warrants careful monitoring.

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