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

Johnson & Johnson (NYSE:JNJ)

Financial Reporting Quality: Aggregate Accruals

Advanced level

Balance-Sheet-Based Accruals Ratio

Johnson & Johnson, balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Operating Assets
Total assets 157,728  152,954  157,303  141,208  133,411 
Less: Cash and cash equivalents 17,305  18,107  17,824  18,972  13,732 
Less: Marketable securities 1,982  1,580  472  22,935  24,644 
Operating assets 138,441  133,267  139,007  99,301  95,035 
Operating Liabilities
Total liabilities 98,257  93,202  97,143  70,790  62,261 
Less: Loans and notes payable 1,202  2,796  3,906  4,684  7,004 
Less: Long-term debt, excluding current portion 26,494  27,684  30,675  22,442  12,857 
Operating liabilities 70,561  62,722  62,562  43,664  42,400 
 
Net operating assets1 67,880  70,545  76,445  55,637  52,635 
Balance-sheet-based aggregate accruals2 (2,665) (5,900) 20,808  3,002 
Financial Ratio
Balance-sheet-based accruals ratio3 -3.85% -8.03% 31.51% 5.55%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Abbott Laboratories -1.97% -6.71% 69.42% -1.06%
AbbVie Inc. -24.37% -31.42% -7.02% 25.20%
Amgen Inc. 56.66% -9.88% -33.04% -6.85%
Biogen Inc. -4.05% 3.85% 7.67% 9.75%
Bristol-Myers Squibb Co. 147.33% -3.17% -24.97% -0.82%
Eli Lilly & Co. -0.10% -10.27% -5.99% 1.26%
Gilead Sciences Inc. 19.80% -41.29% -16.94% 23.56%
Illumina Inc. -2.16% 10.15% 6.34% 23.87%
Merck & Co. Inc. -2.90% -15.70% -0.65% -12.97%
Pfizer Inc. 19.85% -9.34% 12.36% 4.12%
Regeneron Pharmaceuticals Inc. 25.36% 20.14% 33.15% 26.37%
Vertex Pharmaceuticals Inc. 42.22% 110.08% -29.69% -17.29%
Zoetis Inc. 4.03% 29.08% -1.25% 8.66%
Balance-Sheet-Based Accruals Ratio, Sector
Pharmaceuticals & Biotechnology 23.89% -10.89% 10.16% 4.19%
Balance-Sheet-Based Accruals Ratio, Industry
Health Care 15.82% -0.79% 9.04% 4.69%

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).

1 2019 Calculation
Net operating assets = Operating assets – Operating liabilities
= 138,44170,561 = 67,880

2 2019 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2019 – Net operating assets2018
= 67,88070,545 = -2,665

3 2019 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -2,665 ÷ [(67,880 + 70,545) ÷ 2] = -3.85%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Johnson & Johnson improved earnings quality from 2018 to 2019.

Cash-Flow-Statement-Based Accruals Ratio

Johnson & Johnson, cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net earnings 15,119  15,297  1,300  16,540  15,409 
Less: Net cash flows from operating activities 23,416  22,201  21,056  18,767  19,279 
Less: Net cash used by investing activities (6,194) (3,167) (14,868) (4,761) (7,735)
Cash-flow-statement-based aggregate accruals (2,103) (3,737) (4,888) 2,534  3,865 
Financial Ratio
Cash-flow-statement-based accruals ratio1 -3.04% -5.08% -7.40% 4.68%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Abbott Laboratories -1.39% -5.39% 12.34% -6.46%
AbbVie Inc. -28.46% -23.85% -12.92% 16.02%
Amgen Inc. -29.37% -95.70% -22.85% 22.06%
Biogen Inc. -10.98% 1.91% 6.65% 12.70%
Bristol-Myers Squibb Co. 10.75% -1.14% -28.29% 0.76%
Eli Lilly & Co. 74.20% -25.54% -11.43% 5.63%
Gilead Sciences Inc. 19.49% -73.15% 28.23% 29.15%
Illumina Inc. -33.57% 65.79% 3.10% 16.01%
Merck & Co. Inc. -2.28% -19.26% -13.29% -5.97%
Pfizer Inc. 7.93% -10.12% 10.69% -1.06%
Regeneron Pharmaceuticals Inc. 22.48% 28.32% 19.22% 13.64%
Vertex Pharmaceuticals Inc. 35.87% 86.04% -22.78% -57.04%
Zoetis Inc. 2.95% 31.33% -4.07% 6.41%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Pharmaceuticals & Biotechnology 2.86% -16.39% -0.76% 5.55%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Health Care 3.88% -5.94% 1.03% 5.97%

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).

1 2019 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -2,103 ÷ [(67,880 + 70,545) ÷ 2] = -3.04%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Johnson & Johnson improved earnings quality from 2018 to 2019.