Johnson & Johnson — Earnings Quality Grade F
JNJ · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 67 days, change +6 days YoY
AR growth 15.7% exceeds revenue growth 6.0%
Revenue 6.0%, CFFO 1.1%. Cash follows revenue
Expense Quality
Inventory 14.0% vs COGS 10.1%. Normal
CapEx growth -15.9% vs revenue 6.0%. Normal
SG&A/Gross Profit = 37.0%. Normal
Gross margin 67.9%, change -1.2pp. Stable
Cash Flow Quality
CFFO/NI = 0.92. Profits backed by cash
FCF $19.3B, FCF/NI = 0.72
Accruals ratio = 1.1%. Low accruals
Cash $20.1B covers only 42% of debt $47.9B
Balance Sheet Health
Goodwill+Intangibles $99.2B = 122% of equity. Over 50%
Debt/EBITDA = 1.2x. Healthy
Other assets grew 25.9% vs revenue 6.0%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 21% YoY. Normal
Manipulation Score
M-Score = -2.26 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09