Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Johnson & Johnson (NYSE:JNJ)

Analysis of Investments

Advanced level


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

Johnson & Johnson, adjustment to net earnings

US$ in millions

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12 months ended: Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings (as reported) 15,119  15,297  1,300  16,540  15,409 
Add: Net change in securities —  —  (179) (193) 347 
Net earnings (adjusted) 15,119  15,297  1,121  16,347  15,756 

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).


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

Johnson & Johnson, adjusted profitability ratios

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Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 18.42% 18.75% 1.70% 23.01% 21.99%
Adjusted net profit margin 18.42% 18.75% 1.47% 22.74% 22.48%
Return on Equity (ROE)
Reported ROE 25.42% 25.60% 2.16% 23.49% 21.66%
Adjusted ROE 25.42% 25.60% 1.86% 23.21% 22.14%
Return on Assets (ROA)
Reported ROA 9.59% 10.00% 0.83% 11.71% 11.55%
Adjusted ROA 9.59% 10.00% 0.71% 11.58% 11.81%

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

Profitability 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 ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Johnson & Johnson’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Johnson & Johnson’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Johnson & Johnson, Profitability Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

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Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings 15,119  15,297  1,300  16,540  15,409 
Sales to customers 82,059  81,581  76,450  71,890  70,074 
Profitability Ratio
Net profit margin1 18.42% 18.75% 1.70% 23.01% 21.99%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings 15,119  15,297  1,121  16,347  15,756 
Sales to customers 82,059  81,581  76,450  71,890  70,074 
Profitability Ratio
Adjusted net profit margin2 18.42% 18.75% 1.47% 22.74% 22.48%

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

2019 Calculations

1 Net profit margin = 100 × Net earnings ÷ Sales to customers
= 100 × 15,119 ÷ 82,059 = 18.42%

2 Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales to customers
= 100 × 15,119 ÷ 82,059 = 18.42%

Profitability 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 ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Return on Equity (ROE)

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Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings 15,119  15,297  1,300  16,540  15,409 
Shareholders’ equity 59,471  59,752  60,160  70,418  71,150 
Profitability Ratio
ROE1 25.42% 25.60% 2.16% 23.49% 21.66%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings 15,119  15,297  1,121  16,347  15,756 
Shareholders’ equity 59,471  59,752  60,160  70,418  71,150 
Profitability Ratio
Adjusted ROE2 25.42% 25.60% 1.86% 23.21% 22.14%

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

2019 Calculations

1 ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 15,119 ÷ 59,471 = 25.42%

2 Adjusted ROE = 100 × Adjusted net earnings ÷ Shareholders’ equity
= 100 × 15,119 ÷ 59,471 = 25.42%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Johnson & Johnson’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net earnings 15,119  15,297  1,300  16,540  15,409 
Total assets 157,728  152,954  157,303  141,208  133,411 
Profitability Ratio
ROA1 9.59% 10.00% 0.83% 11.71% 11.55%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings 15,119  15,297  1,121  16,347  15,756 
Total assets 157,728  152,954  157,303  141,208  133,411 
Profitability Ratio
Adjusted ROA2 9.59% 10.00% 0.71% 11.58% 11.81%

Based on: 10-K (filing date: 2020-02-18), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-21), 10-K (filing date: 2017-02-27), 10-K (filing date: 2016-02-24).

2019 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 15,119 ÷ 157,728 = 9.59%

2 Adjusted ROA = 100 × Adjusted net earnings ÷ Total assets
= 100 × 15,119 ÷ 157,728 = 9.59%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Johnson & Johnson’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.