Johnson & Johnson (JNJ)


DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Beginner level


Two-Component Disaggregation of ROE

Johnson & Johnson, decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
Sep 29, 2019 24.31% = 9.10% × 2.67
Jun 30, 2019 26.87% = 10.53% × 2.55
Mar 31, 2019 24.90% = 9.78% × 2.54
Dec 30, 2018 25.60% = 10.00% × 2.56
Sep 30, 2018 2.39% = 0.99% × 2.41
Jul 1, 2018 2.18% = 0.88% × 2.47
Apr 1, 2018 1.97% = 0.79% × 2.48
Dec 31, 2017 2.16% = 0.83% × 2.61
Oct 1, 2017 21.39% = 10.17% × 2.10
Jul 2, 2017 22.71% = 10.69% × 2.12
Apr 2, 2017 23.46% = 11.39% × 2.06
Dec 31, 2016 23.49% = 11.71% × 2.01
Oct 2, 2016 21.91% = 11.36% × 1.93
Jul 3, 2016 20.73% = 10.75% × 1.93
Apr 3, 2016 21.40% = 11.41% × 1.88
Dec 31, 2015 21.66% = 11.55% × 1.88
Sep 27, 2015 20.56% = 11.04% × 1.86
Jun 28, 2015 22.64% = 12.20% × 1.86
Mar 29, 2015 23.45% = 12.38% × 1.89
Dec 28, 2014 23.40% = 12.45% × 1.88
Sep 28, 2014 = × 1.72
Jun 29, 2014 = × 1.73
Mar 30, 2014 = × 1.74

Based on: 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-08-01), 10-Q (filing date: 2014-05-02).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2019 is the decrease in profitability measured by return on assets ratio (ROA).


Three-Component Disaggregation of ROE

Johnson & Johnson, decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 29, 2019 24.31% = 17.32% × 0.53 × 2.67
Jun 30, 2019 26.87% = 20.08% × 0.52 × 2.55
Mar 31, 2019 24.90% = 17.99% × 0.54 × 2.54
Dec 30, 2018 25.60% = 18.75% × 0.53 × 2.56
Sep 30, 2018 2.39% = 1.89% × 0.52 × 2.41
Jul 1, 2018 2.18% = 1.70% × 0.52 × 2.47
Apr 1, 2018 1.97% = 1.58% × 0.50 × 2.48
Dec 31, 2017 2.16% = 1.70% × 0.49 × 2.61
Oct 1, 2017 21.39% = 21.28% × 0.48 × 2.10
Jul 2, 2017 22.71% = 22.52% × 0.47 × 2.12
Apr 2, 2017 23.46% = 22.87% × 0.50 × 2.06
Dec 31, 2016 23.49% = 23.01% × 0.51 × 2.01
Oct 2, 2016 21.91% = 22.27% × 0.51 × 1.93
Jul 3, 2016 20.73% = 21.20% × 0.51 × 1.93
Apr 3, 2016 21.40% = 22.15% × 0.52 × 1.88
Dec 31, 2015 21.66% = 21.99% × 0.53 × 1.88
Sep 27, 2015 20.56% = 20.87% × 0.53 × 1.86
Jun 28, 2015 22.64% = 22.41% × 0.54 × 1.86
Mar 29, 2015 23.45% = 21.63% × 0.57 × 1.89
Dec 28, 2014 23.40% = 21.96% × 0.57 × 1.88
Sep 28, 2014 = × × 1.72
Jun 29, 2014 = × × 1.73
Mar 30, 2014 = × × 1.74

Based on: 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-08-01), 10-Q (filing date: 2014-05-02).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2019 is the decrease in profitability measured by net profit margin ratio.


Five-Component Disaggregation of ROE

Johnson & Johnson, decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 29, 2019 24.31% = 0.87 × 0.97 × 20.46% × 0.53 × 2.67
Jun 30, 2019 26.87% = 0.86 × 0.97 × 24.21% × 0.52 × 2.55
Mar 31, 2019 24.90% = 0.87 × 0.95 × 21.80% × 0.54 × 2.54
Dec 30, 2018 25.60% = 0.85 × 0.95 × 23.29% × 0.53 × 2.56
Sep 30, 2018 2.39% = 0.09 × 0.94 × 22.69% × 0.52 × 2.41
Jul 1, 2018 2.18% = 0.08 × 0.95 × 23.32% × 0.52 × 2.47
Apr 1, 2018 1.97% = 0.07 × 0.95 × 23.60% × 0.50 × 2.48
Dec 31, 2017 2.16% = 0.07 × 0.95 × 24.34% × 0.49 × 2.61
Oct 1, 2017 21.39% = 0.81 × 0.96 × 27.27% × 0.48 × 2.10
Jul 2, 2017 22.71% = 0.82 × 0.96 × 28.59% × 0.47 × 2.12
Apr 2, 2017 23.46% = 0.82 × 0.96 × 28.89% × 0.50 × 2.06
Dec 31, 2016 23.49% = 0.84 × 0.96 × 28.56% × 0.51 × 2.01
Oct 2, 2016 21.91% = 0.83 × 0.96 × 27.85% × 0.51 × 1.93
Jul 3, 2016 20.73% = 0.83 × 0.97 × 26.40% × 0.51 × 1.93
Apr 3, 2016 21.40% = 0.82 × 0.97 × 27.77% × 0.52 × 1.88
Dec 31, 2015 21.66% = 0.80 × 0.97 × 28.18% × 0.53 × 1.88
Sep 27, 2015 20.56% = 0.81 × 0.97 × 26.48% × 0.53 × 1.86
Jun 28, 2015 22.64% = 0.77 × 0.97 × 29.73% × 0.54 × 1.86
Mar 29, 2015 23.45% = 0.77 × 0.97 × 28.87% × 0.57 × 1.89
Dec 28, 2014 23.40% = 0.79 × 0.97 × 28.38% × 0.57 × 1.88
Sep 28, 2014 = × × × × 1.72
Jun 29, 2014 = × × × × 1.73
Mar 30, 2014 = × × × × 1.74

Based on: 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-08-01), 10-Q (filing date: 2014-05-02).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2019 is the decrease in operating profitability measured by EBIT margin ratio.


Two-Component Disaggregation of ROA

Johnson & Johnson, decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
Sep 29, 2019 9.10% = 17.32% × 0.53
Jun 30, 2019 10.53% = 20.08% × 0.52
Mar 31, 2019 9.78% = 17.99% × 0.54
Dec 30, 2018 10.00% = 18.75% × 0.53
Sep 30, 2018 0.99% = 1.89% × 0.52
Jul 1, 2018 0.88% = 1.70% × 0.52
Apr 1, 2018 0.79% = 1.58% × 0.50
Dec 31, 2017 0.83% = 1.70% × 0.49
Oct 1, 2017 10.17% = 21.28% × 0.48
Jul 2, 2017 10.69% = 22.52% × 0.47
Apr 2, 2017 11.39% = 22.87% × 0.50
Dec 31, 2016 11.71% = 23.01% × 0.51
Oct 2, 2016 11.36% = 22.27% × 0.51
Jul 3, 2016 10.75% = 21.20% × 0.51
Apr 3, 2016 11.41% = 22.15% × 0.52
Dec 31, 2015 11.55% = 21.99% × 0.53
Sep 27, 2015 11.04% = 20.87% × 0.53
Jun 28, 2015 12.20% = 22.41% × 0.54
Mar 29, 2015 12.38% = 21.63% × 0.57
Dec 28, 2014 12.45% = 21.96% × 0.57
Sep 28, 2014 = ×
Jun 29, 2014 = ×
Mar 30, 2014 = ×

Based on: 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-08-01), 10-Q (filing date: 2014-05-02).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2019 is the decrease in profitability measured by net profit margin ratio.


Four-Component Disaggregation of ROA

Johnson & Johnson, decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 29, 2019 9.10% = 0.87 × 0.97 × 20.46% × 0.53
Jun 30, 2019 10.53% = 0.86 × 0.97 × 24.21% × 0.52
Mar 31, 2019 9.78% = 0.87 × 0.95 × 21.80% × 0.54
Dec 30, 2018 10.00% = 0.85 × 0.95 × 23.29% × 0.53
Sep 30, 2018 0.99% = 0.09 × 0.94 × 22.69% × 0.52
Jul 1, 2018 0.88% = 0.08 × 0.95 × 23.32% × 0.52
Apr 1, 2018 0.79% = 0.07 × 0.95 × 23.60% × 0.50
Dec 31, 2017 0.83% = 0.07 × 0.95 × 24.34% × 0.49
Oct 1, 2017 10.17% = 0.81 × 0.96 × 27.27% × 0.48
Jul 2, 2017 10.69% = 0.82 × 0.96 × 28.59% × 0.47
Apr 2, 2017 11.39% = 0.82 × 0.96 × 28.89% × 0.50
Dec 31, 2016 11.71% = 0.84 × 0.96 × 28.56% × 0.51
Oct 2, 2016 11.36% = 0.83 × 0.96 × 27.85% × 0.51
Jul 3, 2016 10.75% = 0.83 × 0.97 × 26.40% × 0.51
Apr 3, 2016 11.41% = 0.82 × 0.97 × 27.77% × 0.52
Dec 31, 2015 11.55% = 0.80 × 0.97 × 28.18% × 0.53
Sep 27, 2015 11.04% = 0.81 × 0.97 × 26.48% × 0.53
Jun 28, 2015 12.20% = 0.77 × 0.97 × 29.73% × 0.54
Mar 29, 2015 12.38% = 0.77 × 0.97 × 28.87% × 0.57
Dec 28, 2014 12.45% = 0.79 × 0.97 × 28.38% × 0.57
Sep 28, 2014 = × × ×
Jun 29, 2014 = × × ×
Mar 30, 2014 = × × ×

Based on: 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-08-01), 10-Q (filing date: 2014-05-02).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2019 is the decrease in operating profitability measured by EBIT margin ratio.


Disaggregation of Net Profit Margin

Johnson & Johnson, decomposition of net profit margin ratio (quarterly data)

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 29, 2019 17.32% = 0.87 × 0.97 × 20.46%
Jun 30, 2019 20.08% = 0.86 × 0.97 × 24.21%
Mar 31, 2019 17.99% = 0.87 × 0.95 × 21.80%
Dec 30, 2018 18.75% = 0.85 × 0.95 × 23.29%
Sep 30, 2018 1.89% = 0.09 × 0.94 × 22.69%
Jul 1, 2018 1.70% = 0.08 × 0.95 × 23.32%
Apr 1, 2018 1.58% = 0.07 × 0.95 × 23.60%
Dec 31, 2017 1.70% = 0.07 × 0.95 × 24.34%
Oct 1, 2017 21.28% = 0.81 × 0.96 × 27.27%
Jul 2, 2017 22.52% = 0.82 × 0.96 × 28.59%
Apr 2, 2017 22.87% = 0.82 × 0.96 × 28.89%
Dec 31, 2016 23.01% = 0.84 × 0.96 × 28.56%
Oct 2, 2016 22.27% = 0.83 × 0.96 × 27.85%
Jul 3, 2016 21.20% = 0.83 × 0.97 × 26.40%
Apr 3, 2016 22.15% = 0.82 × 0.97 × 27.77%
Dec 31, 2015 21.99% = 0.80 × 0.97 × 28.18%
Sep 27, 2015 20.87% = 0.81 × 0.97 × 26.48%
Jun 28, 2015 22.41% = 0.77 × 0.97 × 29.73%
Mar 29, 2015 21.63% = 0.77 × 0.97 × 28.87%
Dec 28, 2014 21.96% = 0.79 × 0.97 × 28.38%
Sep 28, 2014 = × ×
Jun 29, 2014 = × ×
Mar 30, 2014 = × ×

Based on: 10-Q (filing date: 2019-10-28), 10-Q (filing date: 2019-07-29), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-20), 10-Q (filing date: 2018-10-31), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-01), 10-K (filing date: 2018-02-21), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-03), 10-Q (filing date: 2017-05-08), 10-K (filing date: 2017-02-27), 10-Q (filing date: 2016-11-04), 10-Q (filing date: 2016-08-04), 10-Q (filing date: 2016-05-10), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-07-31), 10-Q (filing date: 2015-05-01), 10-K (filing date: 2015-02-24), 10-Q (filing date: 2014-10-30), 10-Q (filing date: 2014-08-01), 10-Q (filing date: 2014-05-02).

The primary reason for the decrease in net profit margin ratio over Q3 2019 is the decrease in operating profitability measured by EBIT margin ratio.