Johnson & Johnson (NYSE:JNJ)

Sales to Customers

The sales revenue displayed an overall upward trend from 2005 through 2024, increasing from $50,514 million in 2005 to a peak around $94,943 million in 2022. There were periods of steady growth, particularly from 2005 to 2014, with a few fluctuations thereafter. Notably, sales experienced a decline after 2022, dropping to $85,159 million in 2023, before slightly recovering to $88,821 million in 2024. This suggests some volatility in recent years, potentially reflecting changing market conditions or external factors impacting revenue generation.

Net Earnings

Net earnings exhibited more volatility compared to sales. Starting at $10,411 million in 2005, earnings increased generally until 2010 but showed substantial fluctuations thereafter. There was a significant drop in 2011 to $9,672 million, followed by recovery and spikes in subsequent years, including a sharp decline in 2017 to $1,300 million. Afterward, earnings climbed again, reaching a notable high of $35,153 million in 2023, which marked the highest point in the period analyzed. However, this was followed by a steep decrease to $14,066 million in 2024. The pattern suggests irregular profitability possibly due to extraordinary items, changes in costs, or other operational factors affecting net income distinctly from sales.

Comparative Insights

While sales maintained a relatively stable growth trajectory with minor setbacks at the end of the period, net earnings demonstrated substantial instability. The disconnect between revenue growth and earnings volatility may indicate margin pressures, variable expenses, or nonrecurring gains and losses impacting profitability. The years 2017 and the early 2020s stand out with marked deviations in earnings, warranting closer examination of underlying causes such as restructuring charges, asset impairments, or market disruptions. Overall, the data indicates strong revenue generation capacity but variable net profitability over the observed period.

The analysis of the financial data over the period reveals notable trends in current assets and total assets.

Current Assets

Current assets exhibited fluctuations throughout the observed years. Starting at approximately 31,394 million US dollars at the end of 2005, there was a decline in 2006 to around 22,975 million. From 2007 onward, current assets generally increased, reaching a peak near 65,032 million in 2016. However, a significant decrease occurred in 2017, dropping to about 43,088 million, followed by a modest recovery in subsequent years. The values varied with some volatility but mostly remained within the range of 43,000 to 61,000 million dollars from 2017 to 2024. This indicates periods of both growth and contraction in liquid resource availability.

Total Assets

Total assets showed a consistent upward trend over the entire period from 2005 to 2024. Beginning at around 58,025 million US dollars in 2005, total assets rose steadily through the years, outpacing the growth of current assets and reaching approximately 182,018 million in 2021. Despite minor variations and a small decrease from 2022 to 2023, the total asset base expanded significantly, ending near 180,104 million dollars in 2024. The sustained growth in total assets suggests ongoing investment and acquisition activity or asset enhancement strategies.

Overall, the data reflect a strong expansion of the company's asset base with more pronounced growth in long-term or non-current assets, given the total assets increase exceeds that of current assets. The volatility in current assets could relate to changes in operational cash needs, inventory management, receivables, or market conditions affecting liquid assets.

Current liabilities

Current liabilities show a general upward trend from 12,635 million USD in 2005 to a peak of 55,802 million USD in 2022, with some fluctuations. Notably, there is a significant increase from 25,085 million USD in 2014 to 42,493 million USD in 2020. After reaching the peak in 2022, current liabilities decrease to 46,282 million USD in 2023 before rising again slightly to 50,321 million USD in 2024.

Total liabilities

Total liabilities have consistently increased over the period, starting at 20,154 million USD in 2005 and more than quintupling to 108,614 million USD by 2024. There is a marked acceleration between 2016 and 2017, where total liabilities rose sharply from 70,790 million USD to 97,143 million USD. Despite some fluctuations, the upward trajectory continues, highlighting a significant increase in overall liabilities.

Total debt

Total debt also exhibits an overall increasing pattern, beginning at 2,685 million USD in 2005 and rising to 36,634 million USD in 2024. The growth is characterized by periods of rapid increase, notably between 2015 and 2017, where total debt surged from 19,861 million USD to 34,581 million USD. A decline is observed between 2017 and 2019, with a dip from 34,581 million USD to 27,696 million USD, followed by renewed growth to 39,659 million USD in 2022, then a drop to 29,332 million USD in 2023 before rising again in 2024.

Shareholders’ equity

Shareholders’ equity trends upward from 37,871 million USD in 2005, reaching a high of 74,023 million USD in 2021. However, from 2013 onward, equity reflects a more volatile pattern with a decline from 74,053 million USD in 2013 to 59,752 million USD in 2018. After a modest recovery to 76,804 million USD in 2022, equity falls again to 68,774 million USD in 2023, before increasing slightly to 71,490 million USD in 2024. This indicates fluctuations in net assets despite general growth over the longer term.

Operating Activities Cash Flow

The net cash flows from operating activities exhibit a generally increasing trend over the years. Starting from approximately $11,877 million in 2005, the figure peaks around 2020 at roughly $23,536 million. Post-2020, there is a slight decline but the cash flows remain robust, maintaining above $21,000 million through 2024. This trend indicates strong and relatively stable cash generation from core business operations.

Investing Activities Cash Flow

Net cash used by investing activities demonstrates significant volatility. Early years, particularly 2006 and 2009 through 2010, show substantial cash outflows, notable at -$20,291 million in 2006 and -$12,305 million in 2014, indicating large investment or acquisition activities. Between 2019 and 2022, sharp fluctuations are evident, with a positive inflow occurring in 2023 ($878 million), which is unusual compared to predominantly negative values in other years. This suggests possible asset sales or divestitures offsetting investment expenditures during that year.

Financing Activities Cash Flow

The net cash used by financing activities predominantly remains negative throughout the period, reflecting ongoing repayments or dividend payments exceeding new financing inflows. Notably high outflows occur in 2012 and 2014, with -$20,562 million and -$12,260 million respectively, pointing towards considerable debt repayments or share repurchases. A marked decrease in outflows is observed in 2024 with -$3,132 million, significantly lower than preceding years, which could indicate reduced financing activity or a strategic shift in capital structure management.

Overall Cash Flow Trends

Summarizing the data, the company consistently generates strong operational cash flows, with a tendency to reinvest heavily in fixed assets or acquisitions, as reflected in the fluctuating and mostly negative investing cash flows. Concurrently, financing activities predominantly consume cash, likely due to debt servicing and shareholder returns. The positive investing cash flow in 2023 and reduced financing outflows in 2024 may indicate strategic adjustments around asset management and capital deployment.

Basic Earnings Per Share

The basic earnings per share (EPS) exhibited notable volatility over the examined period. From 2005 to 2010, the EPS generally increased from $3.50 to $4.85, reflecting steady growth. A dip occurred in 2011 with a drop to $3.54, followed by recovery and fluctuations through 2017. There was a sharp decline in 2017 to $0.48, possibly indicating extraordinary items or adjustments affecting profitability that year. Afterward, EPS rebounded strongly, peaking at $13.88 in 2023, more than doubling from the prior year. However, this spike was followed by a significant decline in 2024 to $5.84. This pattern suggests episodes of exceptional gains and subsequent normalization.

Diluted Earnings Per Share

The diluted EPS trends closely mirror those of the basic EPS, confirming consistency between earnings calculations on both a basic and diluted basis. The values moved in tandem, with increases from $3.46 in 2005 to $4.78 in 2010, dips in 2011, a dramatic decline in 2017 to $0.47, and a sharp increase to $13.72 in 2023 before falling back to $5.79 in 2024. This similarity reinforces the observation that dilution effects were stable, and that variability was driven by underlying operational or extraordinary factors.

Dividend Per Share

The dividend per share displayed a stable and consistent upward trend throughout the entire period. Starting at $1.28 in 2005, dividends increased year-over-year without interruption, reaching $4.91 by 2024. This steady growth in dividends, despite fluctuations in earnings per share, indicates a commitment to returning income to shareholders, reflecting financial stability and confidence in sustained cash flow generation.