Will Johnson & Johnson Fall Short Next Quarter? The numbers don't paint a clear picture. For the last fully reported fiscal quarter, Johnson & Johnson's year-over-year revenue grew 3.5%, and its AR (accounts receivable) grew 8.4%. End-of-quarter DSO (Days Sales Outstanding) increased 4.8% over the prior-year quarter. It was up 7.5% versus the prior quarter. Is JNJ sending any potential warning signs? Sometimes, problems with AR or DSO simply indicate a change in the business (like an acquisition), or lax collections. However, AR that grows more quickly than revenue, or ballooning DSO, can also suggest a desperate company that's trying to boost sales by giving its customers overly generous payment terms. Alternately, it can indicate that the company sprinted to book a load of sales at the end of the quarter, like used-car dealers on the 29th of the month. (Sometimes, companies do both.)
Why might an upstanding firm like Johnson & Johnson do this? For the same reason any other company might: to make the numbers. Investors don't like revenue shortfalls, and employees don't like reporting them to their superiors
"Will Johnson & Johnson Fall Short Next Quarter?at Motley Fool (Mon 1:23PM EDT)" On the contrary, this article was published today per above. I guess your bias is to be "favorable"; mine is to be "realistic".