Stock Analysis on Net
Stock Analysis on Net
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Johnson & Johnson (NYSE:JNJ)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

Johnson & Johnson, adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported 0.52 0.53 0.49 0.51 0.53
Adjusted 0.55 0.56 0.51 0.53 0.54
Liquidity Ratio
Current Ratio
Reported 1.26 1.47 1.41 2.47 2.17
Adjusted 1.27 1.48 1.42 2.48 2.18
Solvency Ratios
Debt to Equity
Reported 0.47 0.51 0.57 0.39 0.28
Adjusted 0.49 0.52 0.57 0.41 0.30
Debt to Capital
Reported 0.32 0.34 0.37 0.28 0.22
Adjusted 0.33 0.34 0.36 0.29 0.23
Financial Leverage
Reported 2.65 2.56 2.61 2.01 1.88
Adjusted 2.59 2.44 2.44 2.01 1.87
Profitability Ratios
Net Profit Margin
Reported 18.42% 18.75% 1.70% 23.01% 21.99%
Adjusted 14.49% 15.23% 6.98% 19.93% 18.82%
Return on Equity (ROE)
Reported 25.42% 25.60% 2.16% 23.49% 21.66%
Adjusted 20.49% 20.67% 8.60% 21.13% 19.12%
Return on Assets (ROA)
Reported 9.59% 10.00% 0.83% 11.71% 11.55%
Adjusted 7.92% 8.49% 3.53% 10.53% 10.23%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Johnson & Johnson’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Johnson & Johnson’s adjusted current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Johnson & Johnson’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Johnson & Johnson’s adjusted debt-to-capital ratio improved from 2017 to 2018 and from 2018 to 2019.
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’s adjusted financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Johnson & Johnson’s adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Johnson & Johnson’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Johnson & Johnson’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Johnson & Johnson, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Sales to customers 82,059  81,581  76,450  71,890  70,074 
Total assets 157,728  152,954  157,303  141,208  133,411 
Activity Ratio
Total asset turnover1 0.52 0.53 0.49 0.51 0.53
Adjusted
Selected Financial Data (US$ in millions)
Sales to customers 82,059  81,581  76,450  71,890  70,074 
Adjusted total assets2 150,135  146,376  151,255  136,059  128,926 
Activity Ratio
Adjusted total asset turnover3 0.55 0.56 0.51 0.53 0.54

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
Total asset turnover = Sales to customers ÷ Total assets
= 82,059 ÷ 157,728 = 0.52

2 Adjusted total assets. See details »

3 2019 Calculation
Adjusted total asset turnover = Sales to customers ÷ Adjusted total assets
= 82,059 ÷ 150,135 = 0.55

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Johnson & Johnson’s adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 45,274  46,033  43,088  65,032  60,210 
Current liabilities 35,964  31,230  30,537  26,287  27,747 
Liquidity Ratio
Current ratio1 1.26 1.47 1.41 2.47 2.17
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 45,500  46,281  43,379  65,284  60,478 
Current liabilities 35,964  31,230  30,537  26,287  27,747 
Liquidity Ratio
Adjusted current ratio3 1.27 1.48 1.42 2.48 2.18

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
Current ratio = Current assets ÷ Current liabilities
= 45,274 ÷ 35,964 = 1.26

2 Adjusted current assets. See details »

3 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 45,500 ÷ 35,964 = 1.27

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Johnson & Johnson’s adjusted current ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 27,696  30,480  34,581  27,126  19,861 
Shareholders’ equity 59,471  59,752  60,160  70,418  71,150 
Solvency Ratio
Debt to equity1 0.47 0.51 0.57 0.39 0.28
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 28,681  31,294  35,347  27,873  20,598 
Adjusted shareholders’ equity3 58,016  60,108  61,982  67,813  68,991 
Solvency Ratio
Adjusted debt to equity4 0.49 0.52 0.57 0.41 0.30

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
Debt to equity = Total debt ÷ Shareholders’ equity
= 27,696 ÷ 59,471 = 0.47

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity
= 28,681 ÷ 58,016 = 0.49

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’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 27,696  30,480  34,581  27,126  19,861 
Total capital 87,167  90,232  94,741  97,544  91,011 
Solvency Ratio
Debt to capital1 0.32 0.34 0.37 0.28 0.22
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 28,681  31,294  35,347  27,873  20,598 
Adjusted total capital3 86,697  91,402  97,329  95,686  89,589 
Solvency Ratio
Adjusted debt to capital4 0.33 0.34 0.36 0.29 0.23

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
Debt to capital = Total debt ÷ Total capital
= 27,696 ÷ 87,167 = 0.32

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 28,681 ÷ 86,697 = 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’s adjusted debt-to-capital ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 157,728  152,954  157,303  141,208  133,411 
Shareholders’ equity 59,471  59,752  60,160  70,418  71,150 
Solvency Ratio
Financial leverage1 2.65 2.56 2.61 2.01 1.88
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 150,135  146,376  151,255  136,059  128,926 
Adjusted shareholders’ equity3 58,016  60,108  61,982  67,813  68,991 
Solvency Ratio
Adjusted financial leverage4 2.59 2.44 2.44 2.01 1.87

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
Financial leverage = Total assets ÷ Shareholders’ equity
= 157,728 ÷ 59,471 = 2.65

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 150,135 ÷ 58,016 = 2.59

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’s adjusted financial leverage ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings 15,119  15,297  1,300  16,540  15,409 
Sales to customers 82,059  81,581  76,450  71,890  70,074 
Profitability Ratio
Net profit margin1 18.42% 18.75% 1.70% 23.01% 21.99%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 11,890  12,422  5,333  14,327  13,190 
Sales to customers 82,059  81,581  76,450  71,890  70,074 
Profitability Ratio
Adjusted net profit margin3 14.49% 15.23% 6.98% 19.93% 18.82%

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 profit margin = 100 × Net earnings ÷ Sales to customers
= 100 × 15,119 ÷ 82,059 = 18.42%

2 Adjusted net earnings. See details »

3 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales to customers
= 100 × 11,890 ÷ 82,059 = 14.49%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Johnson & Johnson’s adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings 15,119  15,297  1,300  16,540  15,409 
Shareholders’ equity 59,471  59,752  60,160  70,418  71,150 
Profitability Ratio
ROE1 25.42% 25.60% 2.16% 23.49% 21.66%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 11,890  12,422  5,333  14,327  13,190 
Adjusted shareholders’ equity3 58,016  60,108  61,982  67,813  68,991 
Profitability Ratio
Adjusted ROE4 20.49% 20.67% 8.60% 21.13% 19.12%

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
ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 15,119 ÷ 59,471 = 25.42%

2 Adjusted net earnings. See details »

3 Adjusted shareholders’ equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted shareholders’ equity
= 100 × 11,890 ÷ 58,016 = 20.49%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Johnson & Johnson’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 29, 2019 Dec 30, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net earnings 15,119  15,297  1,300  16,540  15,409 
Total assets 157,728  152,954  157,303  141,208  133,411 
Profitability Ratio
ROA1 9.59% 10.00% 0.83% 11.71% 11.55%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 11,890  12,422  5,333  14,327  13,190 
Adjusted total assets3 150,135  146,376  151,255  136,059  128,926 
Profitability Ratio
Adjusted ROA4 7.92% 8.49% 3.53% 10.53% 10.23%

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
ROA = 100 × Net earnings ÷ Total assets
= 100 × 15,119 ÷ 157,728 = 9.59%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 11,890 ÷ 150,135 = 7.92%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Johnson & Johnson’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.