Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Aug 7, 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

9.4

Distress distance

Clean

Earnings quality

Forensic signals

29.3

P / E (ttm)

32.9%

ROE

$624.7B

Market cap

2.09%

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). 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 9.4, 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 total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by receivables up +16% against revenue +6% and inventory up +14% against +10% in cost of sales. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 2% of net operating assets, diverging from the balance-sheet accrual read.

0.94×

FY2023–FY2025

Cash conversion. Over FY2023–FY2025, 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 (3yr)+5.6%

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?

Generate the AI investment read →

No credit card · informational only, not investment advice · see the track record

← Browse all forensic stock analyses

Data from SEC EDGAR public filings · metrics as of Aug 7, 2026. Forensic signals flag probability, not certainty.