Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Johnson & Johnson, profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Johnson & Johnson gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Johnson & Johnson operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Johnson & Johnson net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Johnson & Johnson ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Johnson & Johnson ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Gross Profit Margin
Johnson & Johnson, gross profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 58,606) | 63,854) | 63,920) | 54,157) | 54,503) | |
| Sales to customers | 85,159) | 94,943) | 93,775) | 82,584) | 82,059) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 68.82% | 67.26% | 68.16% | 65.58% | 66.42% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 62.42% | 70.00% | 68.96% | 66.41% | 77.64% | |
| Amgen Inc. | 68.60% | 74.17% | 73.44% | 74.59% | 80.38% | |
| Bristol-Myers Squibb Co. | 76.24% | 78.04% | 78.57% | 72.31% | 69.10% | |
| Eli Lilly & Co. | 79.25% | 76.77% | 74.18% | 77.66% | 78.85% | |
| Gilead Sciences Inc. | 75.87% | 79.03% | 75.56% | 81.23% | 78.86% | |
| Merck & Co. Inc. | 73.17% | 70.63% | 72.02% | 67.74% | 69.87% | |
| Pfizer Inc. | 57.34% | 65.77% | 62.08% | 79.26% | 80.25% | |
| Regeneron Pharmaceuticals Inc. | 86.16% | 87.18% | 84.83% | 86.82% | 90.05% | |
| Thermo Fisher Scientific Inc. | 39.90% | 42.24% | 50.08% | 49.67% | 44.35% | |
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
Gross profit margin = 100 × Gross profit ÷ Sales to customers
= 100 × 58,606 ÷ 85,159 = 68.82%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Johnson & Johnson gross profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Operating Profit Margin
Johnson & Johnson, operating profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating earnings | 21,207) | 23,382) | 23,395) | 19,486) | 19,814) | |
| Sales to customers | 85,159) | 94,943) | 93,775) | 82,584) | 82,059) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 24.90% | 24.63% | 24.95% | 23.60% | 24.15% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 23.49% | 31.21% | 31.89% | 24.81% | 39.03% | |
| Amgen Inc. | 29.35% | 38.57% | 31.44% | 37.70% | 43.57% | |
| Bristol-Myers Squibb Co. | 16.18% | 17.96% | 15.91% | -21.60% | 22.62% | |
| Eli Lilly & Co. | 18.92% | 24.97% | 22.45% | 24.69% | 22.29% | |
| Gilead Sciences Inc. | 28.24% | 27.17% | 36.72% | 16.72% | 19.38% | |
| Merck & Co. Inc. | 3.92% | 30.27% | 25.74% | 16.47% | 24.77% | |
| Pfizer Inc. | 0.38% | 34.83% | 23.91% | 19.47% | 25.46% | |
| Regeneron Pharmaceuticals Inc. | 30.85% | 38.93% | 55.67% | 42.09% | 28.10% | |
| Thermo Fisher Scientific Inc. | 16.00% | 18.69% | 25.57% | 24.19% | 17.99% | |
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 17.15% | 28.18% | 26.79% | 18.25% | 26.23% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 9.29% | 13.11% | 13.07% | 10.36% | 12.35% | |
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
Operating profit margin = 100 × Operating earnings ÷ Sales to customers
= 100 × 21,207 ÷ 85,159 = 24.90%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Johnson & Johnson operating profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Net Profit Margin
Johnson & Johnson, net profit margin calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 8.95% | 20.39% | 20.54% | 10.08% | 23.69% | |
| Amgen Inc. | 24.96% | 26.42% | 24.25% | 29.97% | 35.32% | |
| Bristol-Myers Squibb Co. | 17.83% | 13.71% | 15.08% | -21.20% | 13.15% | |
| Eli Lilly & Co. | 15.36% | 21.88% | 19.71% | 25.24% | 37.27% | |
| Gilead Sciences Inc. | 21.03% | 17.02% | 23.05% | 0.51% | 24.35% | |
| Merck & Co. Inc. | 0.61% | 24.49% | 26.79% | 14.72% | 21.01% | |
| Pfizer Inc. | 3.62% | 31.27% | 27.04% | 22.95% | 31.45% | |
| Regeneron Pharmaceuticals Inc. | 30.14% | 35.64% | 50.25% | 41.35% | 26.91% | |
| Thermo Fisher Scientific Inc. | 13.99% | 15.47% | 19.70% | 19.79% | 14.47% | |
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 17.47% | 22.30% | 23.40% | 13.47% | 23.50% | |
| Net Profit Margin, Industry | ||||||
| Health Care | 7.95% | 10.17% | 10.82% | 7.69% | 10.13% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Johnson & Johnson net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Return on Equity (ROE)
Johnson & Johnson, ROE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AbbVie Inc. | 46.94% | 68.60% | 74.91% | 35.30% | — | |
| Amgen Inc. | 107.78% | 178.97% | 87.96% | 77.20% | 81.07% | |
| Bristol-Myers Squibb Co. | 27.27% | 20.37% | 19.46% | -23.84% | 6.66% | |
| Eli Lilly & Co. | 48.65% | 58.64% | 62.16% | 109.79% | 319.09% | |
| Gilead Sciences Inc. | 24.81% | 21.62% | 29.55% | 0.68% | 23.91% | |
| Merck & Co. Inc. | 0.97% | 31.57% | 34.17% | 27.91% | 37.99% | |
| Pfizer Inc. | 2.38% | 32.79% | 28.47% | 15.21% | 25.77% | |
| Regeneron Pharmaceuticals Inc. | 15.22% | 19.14% | 43.03% | 31.86% | 19.08% | |
| Thermo Fisher Scientific Inc. | 12.83% | 15.80% | 18.94% | 18.47% | 12.45% | |
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 22.46% | 30.00% | 32.02% | 17.93% | 29.87% | |
| ROE, Industry | ||||||
| Health Care | 17.95% | 22.36% | 22.87% | 16.00% | 21.03% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Johnson & Johnson ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Return on Assets (ROA)
Johnson & Johnson, ROA calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | ||
|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AbbVie Inc. | 3.61% | 8.53% | 7.88% | 3.07% | 8.84% | |
| Amgen Inc. | 6.91% | 10.06% | 9.63% | 11.54% | 13.13% | |
| Bristol-Myers Squibb Co. | 8.43% | 6.53% | 6.40% | -7.61% | 2.65% | |
| Eli Lilly & Co. | 8.19% | 12.62% | 11.44% | 13.28% | 21.17% | |
| Gilead Sciences Inc. | 9.12% | 7.27% | 9.16% | 0.18% | 8.74% | |
| Merck & Co. Inc. | 0.34% | 13.30% | 12.35% | 7.72% | 11.66% | |
| Pfizer Inc. | 0.94% | 15.91% | 12.11% | 6.23% | 9.72% | |
| Regeneron Pharmaceuticals Inc. | 11.95% | 14.85% | 31.75% | 20.47% | 14.29% | |
| Thermo Fisher Scientific Inc. | 6.07% | 7.15% | 8.12% | 9.23% | 6.33% | |
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 7.19% | 10.71% | 10.55% | 5.29% | 9.27% | |
| ROA, Industry | ||||||
| Health Care | 6.35% | 8.30% | 8.19% | 5.42% | 7.18% | |
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 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Johnson & Johnson ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |