Johnson & Johnson, adjustment to net earnings

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
Net earnings (as reported)	35,153)	17,941)	20,878)	14,714)	15,119)
Add: Securities, net change	26)	(24)	(4)	1)	—)
Net earnings (adjusted)	35,179)	17,917)	20,874)	14,715)	15,119)

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Johnson & Johnson, adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
Net Profit Margin
Reported net profit margin	41.28%	18.90%	22.26%	17.82%	18.42%
Adjusted net profit margin	41.31%	18.87%	22.26%	17.82%	18.42%
Return on Equity (ROE)
Reported ROE	51.11%	23.36%	28.20%	23.25%	25.42%
Adjusted ROE	51.15%	23.33%	28.20%	23.25%	25.42%
Return on Assets (ROA)
Reported ROA	20.98%	9.57%	11.47%	8.41%	9.59%
Adjusted ROA	21.00%	9.56%	11.47%	8.41%	9.59%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Johnson & Johnson adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Johnson & Johnson adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Johnson & Johnson adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	35,153)	17,941)	20,878)	14,714)	15,119)
Sales to customers	85,159)	94,943)	93,775)	82,584)	82,059)
Profitability Ratio
Net profit margin¹	41.28%	18.90%	22.26%	17.82%	18.42%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings	35,179)	17,917)	20,874)	14,715)	15,119)
Sales to customers	85,159)	94,943)	93,775)	82,584)	82,059)
Profitability Ratio
Adjusted net profit margin²	41.31%	18.87%	22.26%	17.82%	18.42%

2023 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Sales to customers
= 100 × 35,153 ÷ 85,159 = 41.28%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales to customers
= 100 × 35,179 ÷ 85,159 = 41.31%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Johnson & Johnson adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	35,153)	17,941)	20,878)	14,714)	15,119)
Shareholders’ equity	68,774)	76,804)	74,023)	63,278)	59,471)
Profitability Ratio
ROE¹	51.11%	23.36%	28.20%	23.25%	25.42%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings	35,179)	17,917)	20,874)	14,715)	15,119)
Shareholders’ equity	68,774)	76,804)	74,023)	63,278)	59,471)
Profitability Ratio
Adjusted ROE²	51.15%	23.33%	28.20%	23.25%	25.42%

2023 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 35,153 ÷ 68,774 = 51.11%

² Adjusted ROE = 100 × Adjusted net earnings ÷ Shareholders’ equity
= 100 × 35,179 ÷ 68,774 = 51.15%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Johnson & Johnson adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 29, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	35,153)	17,941)	20,878)	14,714)	15,119)
Total assets	167,558)	187,378)	182,018)	174,894)	157,728)
Profitability Ratio
ROA¹	20.98%	9.57%	11.47%	8.41%	9.59%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings	35,179)	17,917)	20,874)	14,715)	15,119)
Total assets	167,558)	187,378)	182,018)	174,894)	157,728)
Profitability Ratio
Adjusted ROA²	21.00%	9.56%	11.47%	8.41%	9.59%

2023 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 35,153 ÷ 167,558 = 20.98%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Total assets
= 100 × 35,179 ÷ 167,558 = 21.00%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Johnson & Johnson adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Johnson & Johnson (NYSE:JNJ)

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