Johnson & Johnson (JNJ)
The income statement (statement of earnings) reports on the performance of Johnson & Johnson, the result of its operating activities.
The assets reports major classes and amounts of resources owned or controlled by Johnson & Johnson.
The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.
The cash flow statement provides information about Johnson & Johnson’s cash receipts and cash payments during an accounting period, showing how these cash flaws link the ending cash balance to the beginning balance shown on Johnson & Johnson’s balance sheet.
Common-Size Financial Statements
Income statement components (revenues and expenses) shown as percentage of total sales.
Assets components shown as percentage of total assets.
Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.
Analysis of Financial Ratios
Evaluates revenues and output generated by the Johnson & Johnson’s assets. Operating performance ratios describe the relationship between the Johnson & Johnson’s level of operations and the assets needed to sustain operating activities.
Measures how efficiently Johnson & Johnson generates revenues from its investments in fixed or total assets.
Measures the adequacy of a Johnson & Johnson’s cash resources to meet its near-term cash obligations.
Examines Johnson & Johnson’s capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.
Measures the income of Johnson & Johnson relative to its revenues and invested capital.
An approach to decomposing Johnson & Johnson’s return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.
Relative valuation technique determine the value of Johnson & Johnson by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock’s value, such as earnings, book value, and sales.