Johnson & Johnson (JNJ)

Basic information about Johnson & Johnson

The income statement (statement of earnings) reports on the performance of Johnson & Johnson, the result of its operating activities.

Comprehensive income is the change in equity (net assets) of Johnson & Johnson during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

The assets reports major classes and amounts of resources owned or controlled by Johnson & Johnson.

The liabilities and stockholders' equity reports major classes and amounts of external claims on assets and owners' capital contributions, and other internally generated sources of capital.

The cash flow statement provides information about Johnson & Johnson's cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on Johnson & Johnson's statement of financial position.

Income statement components (revenuess and expenses) shown as percentage of total sales.

Assets components shown as percentage of total assets.

Liabilities and stockholders' equity components shown as percentage of total liabilities and stockholders' equity.

Evaluates revenues and output generated by the Johnson & Johnson's assets. Operating performance ratios describe the relationship between the Johnson & Johnson's level of operations and the assets needed to sustain operating activities.

• Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Measures how efficiently Johnson & Johnson generates revenues from its investments in fixed or total assets.

• Ratios (Summary)
• Net Fixed Asset Turnover
• Total Asset Turnover
• Equity Turnover

Measures the adequacy of a Johnson & Johnson's cash resources to meet its near-term cash obligations.

• Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Examines Johnson & Johnson's capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Ratios (Summary)
• Debt to Equity
• Debt to Capital
• Interest Coverage

Measures the income of Johnson & Johnson relative to its revenuess and invested capital.

• Ratios (Summary)
• Gross Profit Margin
• Operating Profit Margin
• Net Profit Margin
• Return on Equity (ROE)
• Return on Assets (ROA)

An approach to decomposing Johnson & Johnson's return on equity as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Way Decomposition of ROA
• Four-Way Decomposition of ROA
• Decomposition of Net Profit Margin

Relative valuation technique determine the value of Johnson & Johnson by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock's value, such as earnings, book value, and sales.

• Current Valuation Ratios
• Historical Valuation Ratios (Summary)
• Price to Earnings (P/E)
• Price to Operating Profit (P/OP)
• Price to Sales (P/S)
• Price to Book Value (P/BV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.

• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
• EV to EBITDA Ratio, Current
• EV to EBITDA Ratio, Historical

Free cash flow to the firm is the cash flow available to the Johnson & Johnson's suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Free cash flow to equity is the cash flow available to Johnson & Johnson's equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to Equity (FCFE)
• P to FCFE Ratio, Current
• P to FCFE Ratio, Historical

CAPM is a theory concentrated with deriving the expected rates of return on risky assets based on the assets' systematic risk levels. Systematic risk is the variability of returns that is due to macroeconomic factors that affect all risky assets. It cannot be eliminated by diversification.

• Rates of Return
• Systematic Risk (β) Estimation
• Expected Rate of Return

The Dividend Discount Model (DDM) is a technique for estimating the value of a share of Johnson & Johnson's common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summery)
• Required Rare of Return (r)
• Dividend Growth Rate (g)

The FCFF valuation approach estimates the value of the firm as the present value of future FCFF discounted at the weighted average cost of capital (WACC).

• Intrinsic Stock Value (Valuation Summery)
• Weighted Average Cost of Capital (WACC)
• FCFF Growth Rate (g)

The FCFE valuation approach estimates the value of equity as the present value of future FCFE discounted at the required rate of return on equity.

• Intrinsic Stock Value (Valuation Summery)
• Required Rare of Return (r)
• FCFE Growth Rate (g)

• Revenue Recognition Accounting Policy
• Revenues

• Investment Accounting Policy
• Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
• Adjusted Ratios: Mark to Market Available-for-sale Securities (Summary)
• Adjusted Net Profit Margin
• Adjusted Return On Equity (ROE)
• Adjusted Return On Assets (ROA)

• Inventory Accounting Policy
• Inventory Disclosure

• Property, Plant and Equipment Accounting Policy
• Property, Plant and Equipment Disclosure
• Property, Plant and Equipment Ratios (Summary)
• Average Age
• Estimated Total Useful Life
• Estimated Age, Time Elapsed Since Purchase
• Estimated Remaining Life

• Goodwill and Intangible Assets Accounting Policy
• Goodwill and Intangible Assets Disclosure
• Analyst Adjustments: Removal of Goodwill
• Adjusted Ratios: Removal of Goodwill (Summary)
• Adjusted Total Asset Turnover
• Adjusted Financial Leverage
• Adjusted Return On Equity (ROE)
• Adjusted Return On Assets (ROA)

• Total Debt Disclosure
• Interest Costs Incurred
• Adjusted Interest Coverage Ratio

• Income Tax Accounting Policy
• Income Tax Expense (Benefit)
• Effective Income Tax Rate (EITR)
• Components of Deferred Tax Assets and Liabilities
• Deferred Tax Assets and Liabilities, Classification
• Analyst Adjustments: Removal of Deferred Taxes
• Adjusted Ratios: Removal of Deferred Taxes (Summary)
• Adjusted Current Ratio
• Adjusted Net Profit Margin
• Adjusted Total Asset Turnover
• Adjusted Financial Leverage
• Adjusted Return On Equity (ROE)
• Adjusted Return On Assets (ROA)

• Present Value of Future Operating Lease Payments
• Analyst Adjustments for Operating Leases
• Adjusted Ratios for Operating Leases (Summary)
• Adjusted Total Asset Turnover
• Adjusted Debt to Equity
• Adjusted Return On Assets (ROA)
• Adjusted Interest Coverage
• Estimation of Depreciation Expense, Operating Leased Assets
• Estimation of Interest Expense, Operating Lease Obligations
• Present Value of Operating Lease Payments, at Beginning of Year

Financial reporting quality relates to the accuracy with which Johnson & Johnson's reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.

Aggregate accruals deriving measures of the accrual component of Johnson & Johnson's earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

The accounts receivable that are estimated to be uncollectible are called bad debts or doubtful accounts receivable.

• Allowance for Doubtful Accounts Receivable