Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Sep 25, 2026
Johnson & Johnson (JNJ)
A forensic read on Johnson & Johnson built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
9.7
Distress distance
Clean
Earnings quality
2
Forensic signals
30.9
P / E (ttm)
32.9%
ROE
$648.7B
Market cap
3.12%
Dividend yield
6.0%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Johnson & Johnson earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 9.7, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by accruals ratio (% of noa).
What the filings flag
+25.7%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +25.7% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building sharply — a large slice of profit sits in operating assets, not cash. An accrual is a claim that still has to be collected or written down, so the gap resolves in a later period whichever way it goes. The build is led by receivables up +16% against revenue +6% and inventory up +14% against +10% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 2% of net operating assets, against an accruals ratio of 25.7%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
0.94×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, cumulative operating cash flow was 0.94× cumulative net income. Cash is lagging reported profit. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
Key fundamentals
Latest Revenue$94.19B
Revenue Growth YoY+6.0%
Revenue CAGR (2yr)+5.2%
Net Margin28.5%
Free Cash Flow$19.70B
Return on Equity32.9%
Debt / Equity0.51x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Johnson & Johnson's actual 10-K/10-Q/8-K filings?