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Roughly how many times has JnJ sold its inventory in FY2022? Calculate inventory turnover ratio for FY2022; if conventional inventory management is not meaningful for the company then state that and explain why.

To calculate the inventory turnover ratio for Johnson & Johnson (JNJ) in FY2022:

Formula:
inventory_turnover_ratio = cost_of_goods_sold / average_inventory

Step 1: Find Cost of Goods Sold (COGS) for FY2022:
COGS (FY2022) = $31,089 million

Step 2: Find Average Inventory for FY2022:

  • Inventory at start of FY2022 (Jan 2, 2022): $10,387 million
  • Inventory at end of FY2022 (Jan 1, 2023): $12,483 million
  • Average Inventory = (10,387 + 12,483) / 2 = $11,435 million

Step 3: Calculate Inventory Turnover Ratio:
inventory_turnover_ratio = 31,089 / 11,435 ≈ 2.72

MetricFY 2022
Cost of Goods Sold ($USD Millions)$31,089
Inventory, Start of Year ($USD Millions)$10,387
Inventory, End of Year ($USD Millions)$12,483
Average Inventory ($USD Millions)$11,435
Inventory Turnover Ratio (times)2.72

Conclusion:
Johnson & Johnson turned its inventory over approximately 2.72 times in FY2022. Conventional inventory management analysis is meaningful for JNJ, as it holds significant inventory and operates in manufacturing and distribution of healthcare products, where inventory turnover is a relevant efficiency metric.

$JNJ
What is the average inventory days for JNJ in FY2022)?

To calculate Johnson & Johnson's average inventory days for FY2022:

Step 1: Gather Data

  • Beginning Inventory (2021): $10,387 million
  • Ending Inventory (2022): $12,483 million
  • Cost of Goods Sold (2022): $31,089 million

Step 2: Calculation

  • Average Inventory = (10,387 + 12,483) / 2 = 11,435 million
  • Average Inventory Days = (11,435 / 31,089) * 365 = 134.4 days

Step 3: Present in Table

MetricFY 2022
Beginning Inventory ($USD Millions)$10,387
Ending Inventory ($USD Millions)$12,483
Cost of Goods Sold ($USD Millions)$31,089
Average Inventory ($USD Millions)$11,435
Average Inventory Days (Days)134.4

Johnson & Johnson's average inventory days for FY2022 is approximately 134.4 days.