Export to Excel

Johnson & Johnson (JNJ) | Analysis of Investments

Investment Accounting Policy

Short-term marketable securities are carried at cost, which approximates fair value. Investments classified as available-for-sale are carried at estimated fair value with unrealized gains and losses recorded as a component of accumulated other comprehensive income. Long-term debt securities that Johnson & Johnson has the ability and intent to hold until maturity are carried at amortized cost. Management determines the appropriate classification of its investment in debt and equity securities at the time of purchase and re-evaluates such determination at each balance sheet date. Johnson & Johnson periodically reviews its investments in equity securities for impairment and adjusts these investments to their fair value when a decline in market value is deemed to be other than temporary. If losses on these securities are considered to be other than temporary, the loss is recognized in earnings.

Source: Johnson & Johnson, Annual Report

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Johnson & Johnson, adjustment to Net Earnings

USD $ in millions

Export to Excel
  12 months ended Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
Net earnings (as reported)
Add: Unrealized gains (losses) on securities
Net earnings (adjusted)

Adjusted Ratios: Mark to Market Available-for-sale Securities (Summary)

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Johnson & Johnson, adjusted ratios

Export to Excel
    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  Net Profit Margin
Reported net profit margin % % % % %
Adjusted net profit margin % % % % %
  Return on Equity (ROE)
Reported ROE % % % % %
Adjusted ROE % % % % %
  Return on Assets (ROA)
Reported ROA % % % % %
Adjusted ROA % % % % %
Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Johnson & Johnson's adjusted net profit margin deteriorated from 2008 to 2009 but then improved from 2009 to 2010 exceeding 2008 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders' equity. Johnson & Johnson's adjusted ROE deteriorated from 2008 to 2009 and from 2009 to 2010.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Johnson & Johnson's adjusted ROA deteriorated from 2008 to 2009 but then slightly improved from 2009 to 2010.

Adjusted Net Profit Margin

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Export to Excel
    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  As Reported
Net earnings (USD $ in millions)
Sales to customers (USD $ in millions)
   
Net profit margin1 % % % % %
  Adjusted: Mark to Market Available-for-sale Securities
Adjusted net earnings (USD $ in millions)
Sales to customers (USD $ in millions)
   
Adjusted net profit margin2 % % % % %

2010 Calculations

1 Net profit margin = 100 × Net earnings ÷ Sales to customers
= 100 × ÷ = %

2 Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales to customers
= 100 × ÷ = %

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Johnson & Johnson's adjusted net profit margin deteriorated from 2008 to 2009 but then improved from 2009 to 2010 exceeding 2008 level.

Adjusted Return On Equity (ROE)

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Export to Excel
    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  As Reported
Net earnings (USD $ in millions)
Shareholders’ equity (USD $ in millions)
   
ROE1 % % % % %
  Adjusted: Mark to Market Available-for-sale Securities
Adjusted net earnings (USD $ in millions)
Shareholders’ equity (USD $ in millions)
   
Adjusted ROE2 % % % % %

2010 Calculations

1 ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × ÷ = %

2 Adjusted ROE = 100 × Adjusted net earnings ÷ Shareholders’ equity
= 100 × ÷ = %

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders' equity. Johnson & Johnson's adjusted ROE deteriorated from 2008 to 2009 and from 2009 to 2010.

Adjusted Return On Assets (ROA)

You have visited 10 password protected pages for free. Others contain data covered by .

Sign Up Now to get full access to whole website and cut out all advertisements.

Export to Excel
    Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 Dec 31, 2007 Dec 31, 2006
  As Reported
Net earnings (USD $ in millions)
Total assets (USD $ in millions)
   
ROA1 % % % % %
  Adjusted: Mark to Market Available-for-sale Securities
Adjusted net earnings (USD $ in millions)
Total assets (USD $ in millions)
   
Adjusted ROA2 % % % % %

2010 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × ÷ = %

2 Adjusted ROA = 100 × Adjusted net earnings ÷ Total assets
= 100 × ÷ = %

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Johnson & Johnson's adjusted ROA deteriorated from 2008 to 2009 but then slightly improved from 2009 to 2010.

February 8, 2012

Existing users sign in

Forgot your password?

Basic Materials

Consumer Goods

Consumer Services

Health Care

Industrials

Oil & Gas

Technology

Telecommunications