Stock Analysis on Net
Stock Analysis on Net

Johnson & Johnson (NYSE:JNJ)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Johnson & Johnson, adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Activity Ratio
Total Asset Turnover
Reported 0.51 0.51 0.52 0.47 0.52
Adjusted 0.54 0.53 0.55 0.50 0.55
Liquidity Ratio
Current Ratio
Reported 1.16 0.99 1.35 1.21 1.26
Adjusted 1.16 0.99 1.35 1.21 1.27
Solvency Ratios
Debt to Equity
Reported 0.43 0.52 0.46 0.56 0.47
Adjusted 0.48 0.55 0.48 0.58 0.49
Debt to Capital
Reported 0.30 0.34 0.31 0.36 0.32
Adjusted 0.33 0.36 0.33 0.37 0.33
Financial Leverage
Reported 2.44 2.44 2.46 2.76 2.65
Adjusted 2.52 2.40 2.40 2.67 2.59
Profitability Ratios
Net Profit Margin
Reported 41.28% 18.90% 22.26% 17.82% 18.42%
Adjusted 5.31% 17.18% 22.30% 17.26% 14.49%
Return on Equity (ROE)
Reported 51.11% 23.36% 28.20% 23.25% 25.42%
Adjusted 7.20% 21.94% 29.19% 22.84% 20.49%
Return on Assets (ROA)
Reported 20.98% 9.57% 11.47% 8.41% 9.59%
Adjusted 2.85% 9.14% 12.16% 8.55% 7.92%

Based on: 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), 10-K (reporting date: 2019-12-29).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Johnson & Johnson adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Johnson & Johnson adjusted current ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Johnson & Johnson adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Johnson & Johnson adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Johnson & Johnson adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Johnson & Johnson adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Johnson & Johnson adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Johnson & Johnson adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Johnson & Johnson, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Reported
Selected Financial Data (US$ in millions)
Sales to customers 85,159 94,943 93,775 82,584 82,059
Total assets 167,558 187,378 182,018 174,894 157,728
Activity Ratio
Total asset turnover1 0.51 0.51 0.52 0.47 0.52
Adjusted
Selected Financial Data (US$ in millions)
Sales to customers 85,159 94,943 93,775 82,584 82,059
Adjusted total assets2 158,445 178,458 172,025 166,653 150,135
Activity Ratio
Adjusted total asset turnover3 0.54 0.53 0.55 0.50 0.55

Based on: 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), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Total asset turnover = Sales to customers ÷ Total assets
= 85,159 ÷ 167,558 = 0.51

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Sales to customers ÷ Adjusted total assets
= 85,159 ÷ 158,445 = 0.54

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Johnson & Johnson adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 53,495 55,294 60,979 51,237 45,274
Current liabilities 46,282 55,802 45,226 42,493 35,964
Liquidity Ratio
Current ratio1 1.16 0.99 1.35 1.21 1.26
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 53,661 55,497 61,209 51,530 45,500
Current liabilities 46,282 55,802 45,226 42,493 35,964
Liquidity Ratio
Adjusted current ratio3 1.16 0.99 1.35 1.21 1.27

Based on: 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), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 53,495 ÷ 46,282 = 1.16

2 Adjusted current assets. See details »

3 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 53,661 ÷ 46,282 = 1.16

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Johnson & Johnson adjusted current ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 29,332 39,659 33,751 35,266 27,696
Shareholders’ equity 68,774 76,804 74,023 63,278 59,471
Solvency Ratio
Debt to equity1 0.43 0.52 0.46 0.56 0.47
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 30,432 40,959 34,751 36,366 28,681
Adjusted shareholders’ equity3 62,854 74,367 71,654 62,396 58,016
Solvency Ratio
Adjusted debt to equity4 0.48 0.55 0.48 0.58 0.49

Based on: 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), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 29,332 ÷ 68,774 = 0.43

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity
= 30,432 ÷ 62,854 = 0.48

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Johnson & Johnson adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 29,332 39,659 33,751 35,266 27,696
Total capital 98,106 116,463 107,774 98,544 87,167
Solvency Ratio
Debt to capital1 0.30 0.34 0.31 0.36 0.32
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 30,432 40,959 34,751 36,366 28,681
Adjusted total capital3 93,286 115,326 106,405 98,762 86,697
Solvency Ratio
Adjusted debt to capital4 0.33 0.36 0.33 0.37 0.33

Based on: 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), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 29,332 ÷ 98,106 = 0.30

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 30,432 ÷ 93,286 = 0.33

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Johnson & Johnson adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 167,558 187,378 182,018 174,894 157,728
Shareholders’ equity 68,774 76,804 74,023 63,278 59,471
Solvency Ratio
Financial leverage1 2.44 2.44 2.46 2.76 2.65
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 158,445 178,458 172,025 166,653 150,135
Adjusted shareholders’ equity3 62,854 74,367 71,654 62,396 58,016
Solvency Ratio
Adjusted financial leverage4 2.52 2.40 2.40 2.67 2.59

Based on: 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), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 167,558 ÷ 68,774 = 2.44

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 158,445 ÷ 62,854 = 2.52

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Johnson & Johnson adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net earnings2 4,523 16,314 20,913 14,253 11,890
Sales to customers 85,159 94,943 93,775 82,584 82,059
Profitability Ratio
Adjusted net profit margin3 5.31% 17.18% 22.30% 17.26% 14.49%

Based on: 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), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
Net profit margin = 100 × Net earnings ÷ Sales to customers
= 100 × 35,153 ÷ 85,159 = 41.28%

2 Adjusted net earnings. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales to customers
= 100 × 4,523 ÷ 85,159 = 5.31%

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

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net earnings2 4,523 16,314 20,913 14,253 11,890
Adjusted shareholders’ equity3 62,854 74,367 71,654 62,396 58,016
Profitability Ratio
Adjusted ROE4 7.20% 21.94% 29.19% 22.84% 20.49%

Based on: 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), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 35,153 ÷ 68,774 = 51.11%

2 Adjusted net earnings. See details »

3 Adjusted shareholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted shareholders’ equity
= 100 × 4,523 ÷ 62,854 = 7.20%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Johnson & Johnson adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 29, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net earnings2 4,523 16,314 20,913 14,253 11,890
Adjusted total assets3 158,445 178,458 172,025 166,653 150,135
Profitability Ratio
Adjusted ROA4 2.85% 9.14% 12.16% 8.55% 7.92%

Based on: 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), 10-K (reporting date: 2019-12-29).

1 2023 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 35,153 ÷ 167,558 = 20.98%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 4,523 ÷ 158,445 = 2.85%

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