Stock Analysis on Net
Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Johnson & Johnson, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 51.11% = 20.98% × 2.44
Oct 1, 2023 48.61% = 20.85% × 2.33
Jul 2, 2023 17.37% = 6.81% × 2.55
Apr 2, 2023 17.95% = 6.49% × 2.77
Dec 31, 2022 23.36% = 9.57% × 2.44
Oct 2, 2022 25.68% = 10.94% × 2.35
Jul 3, 2022 24.05% = 10.33% × 2.33
Apr 3, 2022 26.54% = 11.12% × 2.39
Dec 31, 2021 28.20% = 11.47% × 2.46
Oct 3, 2021 25.44% = 9.98% × 2.55
Jul 4, 2021 25.53% = 10.07% × 2.54
Apr 4, 2021 22.96% = 8.76% × 2.62
Dec 31, 2020 23.25% = 8.41% × 2.76
Sep 27, 2020 26.35% = 9.95% × 2.65
Jun 28, 2020 24.11% = 9.59% × 2.51
Mar 29, 2020 28.01% = 11.07% × 2.53
Dec 29, 2019 25.42% = 9.59% × 2.65
Sep 29, 2019 — = — × 2.67
Jun 30, 2019 — = — × 2.55
Mar 31, 2019 — = — × 2.54

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Johnson & Johnson, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 51.11% = 41.28% × 0.51 × 2.44
Oct 1, 2023 48.61% = 36.32% × 0.57 × 2.33
Jul 2, 2023 17.37% = 13.35% × 0.51 × 2.55
Apr 2, 2023 17.95% = 13.22% × 0.49 × 2.77
Dec 31, 2022 23.36% = 18.90% × 0.51 × 2.44
Oct 2, 2022 25.68% = 19.95% × 0.55 × 2.35
Jul 3, 2022 24.05% = 19.21% × 0.54 × 2.33
Apr 3, 2022 26.54% = 20.90% × 0.53 × 2.39
Dec 31, 2021 28.20% = 22.26% × 0.52 × 2.46
Oct 3, 2021 25.44% = 19.55% × 0.51 × 2.55
Jul 4, 2021 25.53% = 19.92% × 0.51 × 2.54
Apr 4, 2021 22.96% = 17.95% × 0.49 × 2.62
Dec 31, 2020 23.25% = 17.82% × 0.47 × 2.76
Sep 27, 2020 26.35% = 21.01% × 0.47 × 2.65
Jun 28, 2020 24.11% = 18.86% × 0.51 × 2.51
Mar 29, 2020 28.01% = 20.75% × 0.53 × 2.53
Dec 29, 2019 25.42% = 18.42% × 0.52 × 2.65
Sep 29, 2019 — = — × — × 2.67
Jun 30, 2019 — = — × — × 2.55
Mar 31, 2019 — = — × — × 2.54

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Johnson & Johnson, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 51.11% = 0.95 × 0.98 × 44.22% × 0.51 × 2.44
Oct 1, 2023 48.61% = 0.93 × 0.98 × 39.96% × 0.57 × 2.33
Jul 2, 2023 17.37% = 0.81 × 0.95 × 17.22% × 0.51 × 2.55
Apr 2, 2023 17.95% = 0.84 × 0.97 × 16.21% × 0.49 × 2.77
Dec 31, 2022 23.36% = 0.83 × 0.99 × 23.17% × 0.51 × 2.44
Oct 2, 2022 25.68% = 0.86 × 0.99 × 23.45% × 0.55 × 2.35
Jul 3, 2022 24.05% = 0.90 × 0.99 × 21.46% × 0.54 × 2.33
Apr 3, 2022 26.54% = 0.93 × 0.99 × 22.49% × 0.53 × 2.39
Dec 31, 2021 28.20% = 0.92 × 0.99 × 24.48% × 0.52 × 2.46
Oct 3, 2021 25.44% = 0.91 × 0.99 × 21.65% × 0.51 × 2.55
Jul 4, 2021 25.53% = 0.88 × 0.99 × 22.84% × 0.51 × 2.54
Apr 4, 2021 22.96% = 0.87 × 0.99 × 20.97% × 0.49 × 2.62
Dec 31, 2020 23.25% = 0.89 × 0.99 × 20.22% × 0.47 × 2.76
Sep 27, 2020 26.35% = 0.89 × 0.99 × 23.83% × 0.47 × 2.65
Jun 28, 2020 24.11% = 0.93 × 0.99 × 20.52% × 0.51 × 2.51
Mar 29, 2020 28.01% = 0.88 × 0.99 × 23.76% × 0.53 × 2.53
Dec 29, 2019 25.42% = 0.87 × 0.98 × 21.50% × 0.52 × 2.65
Sep 29, 2019 — = — × — × — × — × 2.67
Jun 30, 2019 — = — × — × — × — × 2.55
Mar 31, 2019 — = — × — × — × — × 2.54

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Johnson & Johnson, decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 20.98% = 41.28% × 0.51
Oct 1, 2023 20.85% = 36.32% × 0.57
Jul 2, 2023 6.81% = 13.35% × 0.51
Apr 2, 2023 6.49% = 13.22% × 0.49
Dec 31, 2022 9.57% = 18.90% × 0.51
Oct 2, 2022 10.94% = 19.95% × 0.55
Jul 3, 2022 10.33% = 19.21% × 0.54
Apr 3, 2022 11.12% = 20.90% × 0.53
Dec 31, 2021 11.47% = 22.26% × 0.52
Oct 3, 2021 9.98% = 19.55% × 0.51
Jul 4, 2021 10.07% = 19.92% × 0.51
Apr 4, 2021 8.76% = 17.95% × 0.49
Dec 31, 2020 8.41% = 17.82% × 0.47
Sep 27, 2020 9.95% = 21.01% × 0.47
Jun 28, 2020 9.59% = 18.86% × 0.51
Mar 29, 2020 11.07% = 20.75% × 0.53
Dec 29, 2019 9.59% = 18.42% × 0.52
Sep 29, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2023 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Johnson & Johnson, decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 20.98% = 0.95 × 0.98 × 44.22% × 0.51
Oct 1, 2023 20.85% = 0.93 × 0.98 × 39.96% × 0.57
Jul 2, 2023 6.81% = 0.81 × 0.95 × 17.22% × 0.51
Apr 2, 2023 6.49% = 0.84 × 0.97 × 16.21% × 0.49
Dec 31, 2022 9.57% = 0.83 × 0.99 × 23.17% × 0.51
Oct 2, 2022 10.94% = 0.86 × 0.99 × 23.45% × 0.55
Jul 3, 2022 10.33% = 0.90 × 0.99 × 21.46% × 0.54
Apr 3, 2022 11.12% = 0.93 × 0.99 × 22.49% × 0.53
Dec 31, 2021 11.47% = 0.92 × 0.99 × 24.48% × 0.52
Oct 3, 2021 9.98% = 0.91 × 0.99 × 21.65% × 0.51
Jul 4, 2021 10.07% = 0.88 × 0.99 × 22.84% × 0.51
Apr 4, 2021 8.76% = 0.87 × 0.99 × 20.97% × 0.49
Dec 31, 2020 8.41% = 0.89 × 0.99 × 20.22% × 0.47
Sep 27, 2020 9.95% = 0.89 × 0.99 × 23.83% × 0.47
Jun 28, 2020 9.59% = 0.93 × 0.99 × 20.52% × 0.51
Mar 29, 2020 11.07% = 0.88 × 0.99 × 23.76% × 0.53
Dec 29, 2019 9.59% = 0.87 × 0.98 × 21.50% × 0.52
Sep 29, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2023 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Johnson & Johnson, decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 41.28% = 0.95 × 0.98 × 44.22%
Oct 1, 2023 36.32% = 0.93 × 0.98 × 39.96%
Jul 2, 2023 13.35% = 0.81 × 0.95 × 17.22%
Apr 2, 2023 13.22% = 0.84 × 0.97 × 16.21%
Dec 31, 2022 18.90% = 0.83 × 0.99 × 23.17%
Oct 2, 2022 19.95% = 0.86 × 0.99 × 23.45%
Jul 3, 2022 19.21% = 0.90 × 0.99 × 21.46%
Apr 3, 2022 20.90% = 0.93 × 0.99 × 22.49%
Dec 31, 2021 22.26% = 0.92 × 0.99 × 24.48%
Oct 3, 2021 19.55% = 0.91 × 0.99 × 21.65%
Jul 4, 2021 19.92% = 0.88 × 0.99 × 22.84%
Apr 4, 2021 17.95% = 0.87 × 0.99 × 20.97%
Dec 31, 2020 17.82% = 0.89 × 0.99 × 20.22%
Sep 27, 2020 21.01% = 0.89 × 0.99 × 23.83%
Jun 28, 2020 18.86% = 0.93 × 0.99 × 20.52%
Mar 29, 2020 20.75% = 0.88 × 0.99 × 23.76%
Dec 29, 2019 18.42% = 0.87 × 0.98 × 21.50%
Sep 29, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-10-01), 10-Q (reporting date: 2023-07-02), 10-Q (reporting date: 2023-04-02), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-02), 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29), 10-K (reporting date: 2019-12-29), 10-Q (reporting date: 2019-09-29), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in net profit margin ratio over Q4 2023 is the increase in operating profitability measured by EBIT margin ratio.