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: 2024-12-29), 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).
| 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 improved from 2022 to 2023 and from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Johnson & Johnson operating profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Johnson & Johnson net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Johnson & Johnson ROE improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Johnson & Johnson ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Gross Profit Margin
Johnson & Johnson, gross profit margin calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 61,350) | 58,606) | 63,854) | 63,920) | 54,157) | |
| Sales to customers | 88,821) | 85,159) | 94,943) | 93,775) | 82,584) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 69.07% | 68.82% | 67.26% | 68.16% | 65.58% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 69.99% | 62.42% | 70.00% | 68.96% | 66.41% | |
| Amgen Inc. | 59.85% | 68.60% | 74.17% | 73.44% | 74.59% | |
| Bristol-Myers Squibb Co. | 71.08% | 76.24% | 78.04% | 78.57% | 72.31% | |
| Danaher Corp. | 59.50% | 58.74% | 60.21% | 60.95% | 55.98% | |
| Eli Lilly & Co. | 81.31% | 79.25% | 76.77% | 74.18% | 77.66% | |
| Gilead Sciences Inc. | 78.15% | 75.87% | 79.03% | 75.56% | 81.23% | |
| Merck & Co. Inc. | 76.32% | 73.17% | 70.63% | 72.02% | 67.74% | |
| Pfizer Inc. | 71.94% | 58.10% | 66.05% | 62.48% | 79.63% | |
| Regeneron Pharmaceuticals Inc. | 86.13% | 86.16% | 87.18% | 84.83% | 86.82% | |
| Thermo Fisher Scientific Inc. | 41.28% | 39.90% | 42.24% | 50.08% | 49.67% | |
| Vertex Pharmaceuticals Inc. | 86.11% | 87.21% | 87.90% | 88.06% | 88.14% | |
Based on: 10-K (reporting date: 2024-12-29), 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).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Sales to customers
= 100 × 61,350 ÷ 88,821 = 69.07%
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 improved from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
Johnson & Johnson, operating profit margin calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating earnings | 20,804) | 21,207) | 23,382) | 23,395) | 19,486) | |
| Sales to customers | 88,821) | 85,159) | 94,943) | 93,775) | 82,584) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 23.42% | 24.90% | 24.63% | 24.95% | 23.60% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 16.22% | 23.49% | 31.21% | 31.89% | 24.81% | |
| Amgen Inc. | 22.66% | 29.35% | 38.57% | 31.44% | 37.70% | |
| Bristol-Myers Squibb Co. | -15.50% | 16.18% | 17.96% | 15.91% | -21.60% | |
| Danaher Corp. | 20.37% | 21.77% | 27.61% | 25.35% | 18.99% | |
| Eli Lilly & Co. | 28.64% | 18.92% | 24.97% | 22.45% | 24.69% | |
| Gilead Sciences Inc. | 5.81% | 28.24% | 27.17% | 36.72% | 16.72% | |
| Merck & Co. Inc. | 31.03% | 3.92% | 30.27% | 25.74% | 16.47% | |
| Pfizer Inc. | 19.51% | 2.15% | 35.37% | 24.70% | 20.92% | |
| Regeneron Pharmaceuticals Inc. | 28.10% | 30.85% | 38.93% | 55.67% | 42.09% | |
| Thermo Fisher Scientific Inc. | 17.11% | 16.00% | 18.69% | 25.57% | 24.19% | |
| Vertex Pharmaceuticals Inc. | -2.11% | 38.83% | 48.23% | 36.73% | 46.03% | |
| Operating Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 17.84% | 18.01% | 28.59% | 26.98% | 18.87% | |
| Operating Profit Margin, Industry | ||||||
| Health Care | 10.05% | 10.60% | 15.03% | 14.99% | 11.62% | |
Based on: 10-K (reporting date: 2024-12-29), 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).
1 2024 Calculation
Operating profit margin = 100 × Operating earnings ÷ Sales to customers
= 100 × 20,804 ÷ 88,821 = 23.42%
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 improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Net Profit Margin
Johnson & Johnson, net profit margin calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 14,066) | 35,153) | 17,941) | 20,878) | 14,714) | |
| Sales to customers | 88,821) | 85,159) | 94,943) | 93,775) | 82,584) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 15.84% | 41.28% | 18.90% | 22.26% | 17.82% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| AbbVie Inc. | 7.59% | 8.95% | 20.39% | 20.54% | 10.08% | |
| Amgen Inc. | 12.77% | 24.96% | 26.42% | 24.25% | 29.97% | |
| Bristol-Myers Squibb Co. | -18.53% | 17.83% | 13.71% | 15.08% | -21.20% | |
| Danaher Corp. | 16.33% | 19.94% | 22.91% | 21.84% | 16.36% | |
| Eli Lilly & Co. | 23.51% | 15.36% | 21.88% | 19.71% | 25.24% | |
| Gilead Sciences Inc. | 1.68% | 21.03% | 17.02% | 23.05% | 0.51% | |
| Merck & Co. Inc. | 26.68% | 0.61% | 24.49% | 26.79% | 14.72% | |
| Pfizer Inc. | 12.62% | 3.56% | 31.01% | 26.76% | 22.53% | |
| Regeneron Pharmaceuticals Inc. | 31.07% | 30.14% | 35.64% | 50.25% | 41.35% | |
| Thermo Fisher Scientific Inc. | 14.77% | 13.99% | 15.47% | 19.70% | 19.79% | |
| Vertex Pharmaceuticals Inc. | -4.86% | 36.68% | 37.20% | 30.92% | 43.70% | |
| Net Profit Margin, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 12.30% | 17.95% | 22.55% | 23.38% | 14.07% | |
| Net Profit Margin, Industry | ||||||
| Health Care | 7.02% | 9.24% | 11.62% | 12.42% | 8.45% | |
Based on: 10-K (reporting date: 2024-12-29), 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).
1 2024 Calculation
Net profit margin = 100 × Net earnings ÷ Sales to customers
= 100 × 14,066 ÷ 88,821 = 15.84%
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 improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Return on Equity (ROE)
Johnson & Johnson, ROE calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 14,066) | 35,153) | 17,941) | 20,878) | 14,714) | |
| Shareholders’ equity | 71,490) | 68,774) | 76,804) | 74,023) | 63,278) | |
| Profitability Ratio | ||||||
| ROE1 | 19.68% | 51.11% | 23.36% | 28.20% | 23.25% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| AbbVie Inc. | 128.66% | 46.94% | 68.60% | 74.91% | 35.30% | |
| Amgen Inc. | 69.59% | 107.78% | 178.97% | 87.96% | 77.20% | |
| Bristol-Myers Squibb Co. | -54.78% | 27.27% | 20.37% | 19.46% | -23.84% | |
| Danaher Corp. | 7.87% | 8.91% | 14.39% | 14.24% | 9.17% | |
| Eli Lilly & Co. | 74.62% | 48.65% | 58.64% | 62.16% | 109.79% | |
| Gilead Sciences Inc. | 2.48% | 24.81% | 21.62% | 29.55% | 0.68% | |
| Merck & Co. Inc. | 36.96% | 0.97% | 31.57% | 34.17% | 27.91% | |
| Pfizer Inc. | 9.11% | 2.38% | 32.79% | 28.47% | 15.21% | |
| Regeneron Pharmaceuticals Inc. | 15.03% | 15.22% | 19.14% | 43.03% | 31.86% | |
| Thermo Fisher Scientific Inc. | 12.78% | 12.83% | 15.80% | 18.94% | 18.47% | |
| Vertex Pharmaceuticals Inc. | -3.26% | 20.59% | 23.88% | 23.19% | 31.22% | |
| ROE, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 15.57% | 20.65% | 27.99% | 29.75% | 17.22% | |
| ROE, Industry | ||||||
| Health Care | 14.75% | 18.50% | 22.94% | 23.78% | 15.95% | |
Based on: 10-K (reporting date: 2024-12-29), 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).
1 2024 Calculation
ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 14,066 ÷ 71,490 = 19.68%
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 improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Return on Assets (ROA)
Johnson & Johnson, ROA calculation, comparison to benchmarks
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net earnings | 14,066) | 35,153) | 17,941) | 20,878) | 14,714) | |
| Total assets | 180,104) | 167,558) | 187,378) | 182,018) | 174,894) | |
| Profitability Ratio | ||||||
| ROA1 | 7.81% | 20.98% | 9.57% | 11.47% | 8.41% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| AbbVie Inc. | 3.17% | 3.61% | 8.53% | 7.88% | 3.07% | |
| Amgen Inc. | 4.45% | 6.91% | 10.06% | 9.63% | 11.54% | |
| Bristol-Myers Squibb Co. | -9.66% | 8.43% | 6.53% | 6.40% | -7.61% | |
| Danaher Corp. | 5.03% | 5.64% | 8.55% | 7.73% | 4.79% | |
| Eli Lilly & Co. | 13.45% | 8.19% | 12.62% | 11.44% | 13.28% | |
| Gilead Sciences Inc. | 0.81% | 9.12% | 7.27% | 9.16% | 0.18% | |
| Merck & Co. Inc. | 14.62% | 0.34% | 13.30% | 12.35% | 7.72% | |
| Pfizer Inc. | 3.76% | 0.94% | 15.91% | 12.11% | 6.23% | |
| Regeneron Pharmaceuticals Inc. | 11.69% | 11.95% | 14.85% | 31.75% | 20.47% | |
| Thermo Fisher Scientific Inc. | 6.51% | 6.07% | 7.15% | 8.12% | 9.23% | |
| Vertex Pharmaceuticals Inc. | -2.38% | 15.92% | 18.30% | 17.44% | 23.07% | |
| ROA, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.30% | 7.25% | 10.67% | 10.42% | 5.45% | |
| ROA, Industry | ||||||
| Health Care | 5.25% | 6.71% | 8.71% | 8.70% | 5.45% | |
Based on: 10-K (reporting date: 2024-12-29), 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).
1 2024 Calculation
ROA = 100 × Net earnings ÷ Total assets
= 100 × 14,066 ÷ 180,104 = 7.81%
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 improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |