Aureus
AExcellent

Johnson & Johnson(JNJ)

A

Financial data as of Dec 31, 2025Improving · Healthcare

FCF Margin20.5%Free Cash Flow / Revenue
Cash Conversion91.5%Operating CF / Net Income
Free Cash Flow$19.3B
Revenue$94.2B
Net Cash-$28.2BNet debt position
Debt / FCF2.5xManageable debt load
Current Ratio1.03Adequate short-term liquidity
YoY FCF Growth+13.1%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (20.5%, 2.5x)
→
+0.5Modest YoY FCF growth (13.1% YoY)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (20.5%)
  • FCF trend is improving

Concerns

  • Net debt position ($28.2B) — 2.5x FCF, manageable

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin20.5%
Net Margin28.5%
Operating CF Margin26.0%
CapEx Ratio5.5%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$28.2BNet debt position
Debt / FCF2.5xManageable debt load
Current Ratio1.03Adequate liquidity
Debt / Equity0.59Low leverage

Quarterly FCF Trend

+13.1% YoYImproving (+13.1%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameJohnson & Johnson
SectorHealthcare
Free Cash Flow$19.3B
Revenue$94.2B
Net Income$26.8B
Operating Cash Flow$24.5B
Capital Expenditure$5.2B
FCF Margin20.5%
Cash Conversion Rate91.5%
Net Margin28.5%
Total Debt$47.9B
Total Cash$19.7B
Net Cash-$28.2B
Current Ratio1.03
Debt / Equity0.59
Debt / FCF2.5x
YoY FCF Growth+13.1%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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