Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

$24.99

Adjustments to Financial Statements

Microsoft Excel

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Adjustments to Current Assets

Johnson & Johnson, adjusted current assets

US$ in millions

Microsoft Excel
Dec 29, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Current assets
Adjustments
Add: Allowances for doubtful accounts
After Adjustment
Adjusted current assets

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Current Assets Trend
The current assets increased significantly from 51,237 million US dollars at the end of 2020 to 60,979 million US dollars by the end of 2021, indicating a strong accumulation of short-term resources in that year. However, this was followed by a decline to 55,294 million in 2022 and a further decline to 53,495 million in 2023, suggesting some reduction in liquidity or short-term holdings over these years. In 2024, current assets showed a modest recovery to 55,893 million US dollars, indicating a slight improvement or stabilization after the earlier decreases.
Adjusted Current Assets Trend
The adjusted current assets follow a pattern very similar to the unadjusted figures, starting at 51,530 million US dollars in 2020 and increasing to 61,209 million in 2021. This adjusted measure also decreases for the subsequent two years reaching 55,497 million in 2022 and 53,661 million in 2023. In 2024, adjusted current assets increase again to 56,060 million, reflecting the adjustments do not significantly alter the underlying trend, but may suggest minor reconciliations or corrections applied to the unadjusted figures.
Insight on Liquidity and Asset Management
The rise in current assets during 2021 shows an enhanced liquidity position or accumulation of short-term assets, which could relate to increased operational cash flow or strategic asset acquisition. The subsequent decline in both current and adjusted assets during 2022 and 2023 points to a contraction in liquid resources, possibly due to higher short-term liabilities, asset disposition, or operational changes. The slight rebound in 2024 may indicate stabilization or improvements in working capital management. The close alignment of adjusted current assets with the unadjusted values implies consistency and reliability in the measurement of this financial position over the review period.

Adjustments to Total Assets

Johnson & Johnson, adjusted total assets

US$ in millions

Microsoft Excel
Dec 29, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Total assets
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Add: Allowances for doubtful accounts
Less: Deferred tax assets2
After Adjustment
Adjusted total assets

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Operating lease right-of-use asset (before adoption of FASB Topic 842). See details »

2 Deferred tax assets. See details »

Total Assets
The total assets value shows a general upward trend from December 31, 2020, to December 31, 2022, increasing from 174,894 million US dollars to 187,378 million US dollars. However, there is a notable decline in 2023, where total assets decrease to 167,558 million US dollars, before rising again in 2024 to 180,104 million US dollars. This pattern suggests growth during the initial years followed by a temporary contraction and a subsequent recovery.
Adjusted Total Assets
Adjusted total assets exhibit a similar trend to total assets. Starting at 166,653 million US dollars in 2020, the value ascends steadily to 178,458 million US dollars in 2022. A sharp decline occurs in 2023, with adjusted total assets falling to 158,445 million US dollars. By 2024, there is a recovery to 169,810 million US dollars. The adjusted figures consistently remain slightly below the total assets values, indicating accounting adjustments that reduce the asset base but reflect comparable trend changes.

Adjustments to Total Liabilities

Johnson & Johnson, adjusted total liabilities

US$ in millions

Microsoft Excel
Dec 29, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Total liabilities
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)1
Less: Deferred tax liabilities2
After Adjustment
Adjusted total liabilities

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Operating lease liability (before adoption of FASB Topic 842). See details »

2 Deferred tax liabilities. See details »

Total liabilities
The total liabilities exhibited a fluctuating trend over the observed period. Beginning at 111,616 million US dollars in 2020, there was a decrease to 107,995 million in 2021, followed by an increase to 110,574 million in 2022. Subsequently, the liabilities declined noticeably to 98,784 million in 2023 before rising again to 108,614 million by the end of 2024. This indicates some volatility in the company's obligations, with a notable low point in 2023 amidst otherwise higher value years.
Adjusted total liabilities
The adjusted total liabilities closely mirror the pattern of total liabilities but consistently reflect lower values throughout the period. Starting at 104,402 million US dollars in 2020, the amount decreased to 100,508 million in 2021, increased to 104,200 million in 2022, then dropped significantly to 95,591 million in 2023, and finally increased to 106,166 million in 2024. The adjusted figures suggest a similar volatility pattern with a significant dip in 2023, potentially indicating adjustments for non-operational items or other financial considerations affecting the reported liabilities.

Adjustments to Stockholders’ Equity

Johnson & Johnson, adjusted shareholders’ equity

US$ in millions

Microsoft Excel
Dec 29, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Shareholders’ equity
Adjustments
Less: Deferred income taxes1
Add: Allowances for doubtful accounts
After Adjustment
Adjusted shareholders’ equity

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Deferred income taxes. See details »

Shareholders’ equity
The shareholders’ equity demonstrated a rising trend from December 31, 2020, through December 31, 2022, increasing from 63,278 million US dollars to 76,804 million US dollars. This represents a notable growth over the three-year period. However, a decline is observed in 2023, with the equity decreasing to 68,774 million US dollars, followed by a slight rebound to 71,490 million US dollars by the end of 2024. Despite the dip in 2023, the overall trajectory from 2020 to 2024 remains positive, albeit with some volatility.
Adjusted shareholders’ equity
Adjusted shareholders’ equity mirrors the general trend of the standard shareholders’ equity but follows a slightly different path in terms of magnitude and timing. The adjusted figures increased consistently from 62,252 million US dollars in 2020 to 74,258 million US dollars in 2022. In 2023, a sharper decline is evident, dropping to 62,854 million US dollars, which is a more pronounced decrease compared to the unadjusted measure. By the end of 2024, adjusted shareholders’ equity shows a modest recovery, reaching 63,644 million US dollars. This pattern suggests adjustments significantly influence the equity valuation, particularly during periods of downturn.
Overall insights
The financial data indicate growth and strengthening of shareholders’ equity during the initial three years, followed by a contraction phase in 2023 for both standard and adjusted values. The subsequent partial recovery in 2024 highlights some restoration of equity bases but does not yet reach the peak levels observed in 2022. The sharper decline and less pronounced recovery in adjusted shareholders’ equity imply adjustments amplify sensitivity to market or operational factors. This volatility in later years may warrant further investigation into the causes and potential impacts on the company’s financial stability.

Adjustments to Capitalization Table

Johnson & Johnson, adjusted capitalization table

US$ in millions

Microsoft Excel
Dec 29, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Loans and notes payable
Long-term debt, excluding current portion
Total reported debt
Shareholders’ equity
Total reported capital
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)1
Add: Operating lease liability2
Adjusted total debt
Adjustments to Equity
Less: Deferred income taxes3
Add: Allowances for doubtful accounts
Adjusted shareholders’ equity
After Adjustment
Adjusted total capital

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Operating lease liability (before adoption of FASB Topic 842). See details »

2 Operating lease liability. See details »

3 Deferred income taxes. See details »

An analysis of the provided financial data reveals several notable trends over the five-year period ending in late 2024.

Debt Levels
Total reported debt demonstrates variability throughout the period. It started at approximately 35.3 billion USD at the end of 2020, saw a slight decrease in 2021 to 33.8 billion USD, followed by an increase in 2022 up to nearly 39.7 billion USD. A significant reduction occurred in 2023, with debt dropping to about 29.3 billion USD, before rising again to approximately 36.6 billion USD at the end of 2024.
The adjusted total debt follows a similar pattern, starting at 36.4 billion USD in 2020, decreasing slightly in 2021, reaching the peak in 2022 at just over 40.9 billion USD, then declining notably in 2023 to 30.4 billion USD, and increasing again to 37.8 billion USD in 2024. This consistency between reported and adjusted debt suggests adjustments have not materially altered the overall debt trend.
Equity Trends
Shareholders' equity shows growth from 63.3 billion USD in 2020 to a peak of approximately 76.8 billion USD in 2022. However, this growth is followed by a decline in 2023 to about 68.8 billion USD, with a modest recovery to nearly 71.5 billion USD in 2024.
The adjusted shareholders' equity metric reveals a comparable trend with increasing equity from 62.3 billion USD in 2020 to a high of 74.3 billion USD in 2022, then decreasing more sharply to 62.9 billion USD in 2023, and only slightly recovering to 63.6 billion USD in 2024. The sharper decline in adjusted equity compared to reported equity in the last two years may indicate certain adjustments recognizing potential decreases in asset values or other equity components.
Total Capital Dynamics
Total reported capital, combining debt and equity, shows a general upward trend from 98.5 billion USD in 2020 to a maximum of around 116.5 billion USD in 2022. This is followed by a significant decrease in 2023 to about 98.1 billion USD, before rising again to approximately 108.1 billion USD in 2024.
Similarly, adjusted total capital increases from 98.6 billion USD in 2020 to 115.2 billion USD in 2022, then experiences a sharper decrease to 93.3 billion USD in 2023, and a partial rebound to 101.5 billion USD in 2024. The fluctuation in adjusted total capital is more pronounced than in reported figures.
General Observations
The financial data illustrates a cyclical pattern where debt and capital increased substantially through 2022, followed by a notable contraction in 2023. The partial recovery seen in 2024 suggests some stabilization but not a full return to the peak levels of 2022.
The divergence in adjusted equity and capital compared to reported figures in the last two years implies that after adjustments, the financial position may be viewed as less robust, potentially reflecting conservatism in accounting or recognition of risk factors not captured in reported measures.
Overall, the data indicates a phase of expansion up to 2022, followed by a period of deleveraging or asset revaluation in 2023, then tentative recovery in 2024, marking a period of financial recalibration.

Adjustments to Reported Income

Johnson & Johnson, adjusted net earnings

US$ in millions

Microsoft Excel
12 months ended: Dec 29, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Net earnings
Adjustments
Add: Deferred income tax expense (benefit)1
Add: Increase (decrease) in allowances for doubtful accounts
Less: Net earnings from discontinued operations, net of tax
Add: Other comprehensive income (loss), net of tax
After Adjustment
Adjusted net earnings

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Deferred income tax expense (benefit). See details »

Net Earnings
The net earnings exhibit notable fluctuations over the five-year period. The figure increased significantly from 14,714 million USD in 2020 to a peak of 35,153 million USD in 2023. However, this was followed by a sharp decline to 14,066 million USD in 2024, nearly reverting to the 2020 level. This pattern indicates periods of strong profitability, particularly in 2023, but also suggests volatility in earnings performance by the end of the period.
Adjusted Net Earnings
Adjusted net earnings generally reflect a similar trend but with some deviations. From 14,289 million USD in 2020, the value rose to 20,920 million USD in 2021 but then gradually declined to 4,523 million USD by 2023. Unlike net earnings, the lowest adjusted net earnings occur in 2023, indicating significant adjustments or exceptional items affecting this year's results. In 2024, adjusted net earnings increased to 12,670 million USD, which remains below the earlier years but shows some recovery compared to 2023.
Overall Analysis
The substantial rise in net earnings in 2023 contrasts with the sharp drop in adjusted net earnings for the same year, suggesting the presence of one-time gains or accounting adjustments impacting net earnings. The decline in both metrics in 2024 reflects a challenging year or operational difficulties. The volatility observed implies fluctuating operational conditions, potential market or economic influences, or changes in expense or revenue recognition policies that significantly impacted adjusted earnings. Monitoring the causes behind these swings would be critical for understanding future earnings stability.