Analysis of Reportable Segments
Johnson & Johnson operates in 2 segments: Innovative Medicine and MedTech.
Segment Profit Margin
Johnson & Johnson, profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Innovative Medicine | 33.32% | 27.89% | 29.19% | 24.15% | 19.39% |
| MedTech | 15.36% | 16.80% | 16.16% | 13.26% | 28.06% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Innovative Medicine | Innovative Medicine segment profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| MedTech | MedTech segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Profit Margin: Innovative Medicine
Johnson & Johnson; Innovative Medicine; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) before tax | 18,246) | 18,831) | 19,475) | 14,398) | 10,877) |
| Sales to customers | 54,759) | 67,516) | 66,715) | 59,625) | 56,096) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 33.32% | 27.89% | 29.19% | 24.15% | 19.39% |
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
Segment profit margin = 100 × Income (loss) before tax ÷ Sales to customers
= 100 × 18,246 ÷ 54,759 = 33.32%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Innovative Medicine | Innovative Medicine segment profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Segment Profit Margin: MedTech
Johnson & Johnson; MedTech; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) before tax | 4,669) | 4,607) | 4,373) | 3,044) | 7,286) |
| Sales to customers | 30,400) | 27,427) | 27,060) | 22,959) | 25,963) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 15.36% | 16.80% | 16.16% | 13.26% | 28.06% |
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
Segment profit margin = 100 × Income (loss) before tax ÷ Sales to customers
= 100 × 4,669 ÷ 30,400 = 15.36%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | MedTech | MedTech segment profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Return on Assets (Segment ROA)
Johnson & Johnson, ROA by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Innovative Medicine | 31.28% | 22.82% | 21.77% | 15.40% | 13.12% |
| MedTech | 6.25% | 6.49% | 8.19% | 6.14% | 14.73% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Innovative Medicine | Innovative Medicine segment ROA improved from 2021 to 2022 and from 2022 to 2023. |
| MedTech | MedTech segment ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment ROA: Innovative Medicine
Johnson & Johnson; Innovative Medicine; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) before tax | 18,246) | 18,831) | 19,475) | 14,398) | 10,877) |
| Identifiable assets | 58,324) | 82,504) | 89,457) | 93,513) | 82,910) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 31.28% | 22.82% | 21.77% | 15.40% | 13.12% |
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
Segment ROA = 100 × Income (loss) before tax ÷ Identifiable assets
= 100 × 18,246 ÷ 58,324 = 31.28%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | Innovative Medicine | Innovative Medicine segment ROA improved from 2021 to 2022 and from 2022 to 2023. |
Segment ROA: MedTech
Johnson & Johnson; MedTech; segment ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) before tax | 4,669) | 4,607) | 4,373) | 3,044) | 7,286) |
| Identifiable assets | 74,710) | 70,956) | 53,372) | 49,578) | 49,462) |
| Segment Profitability Ratio | |||||
| Segment ROA1 | 6.25% | 6.49% | 8.19% | 6.14% | 14.73% |
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
Segment ROA = 100 × Income (loss) before tax ÷ Identifiable assets
= 100 × 4,669 ÷ 74,710 = 6.25%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment ROA | MedTech | MedTech segment ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Asset Turnover
Johnson & Johnson, asset turnover by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Innovative Medicine | 0.94 | 0.82 | 0.75 | 0.64 | 0.68 |
| MedTech | 0.41 | 0.39 | 0.51 | 0.46 | 0.52 |
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).
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Innovative Medicine | Innovative Medicine segment asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| MedTech | MedTech segment asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Segment Asset Turnover: Innovative Medicine
Johnson & Johnson; Innovative Medicine; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales to customers | 54,759) | 67,516) | 66,715) | 59,625) | 56,096) |
| Identifiable assets | 58,324) | 82,504) | 89,457) | 93,513) | 82,910) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.94 | 0.82 | 0.75 | 0.64 | 0.68 |
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
Segment asset turnover = Sales to customers ÷ Identifiable assets
= 54,759 ÷ 58,324 = 0.94
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | Innovative Medicine | Innovative Medicine segment asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Asset Turnover: MedTech
Johnson & Johnson; MedTech; segment asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales to customers | 30,400) | 27,427) | 27,060) | 22,959) | 25,963) |
| Identifiable assets | 74,710) | 70,956) | 53,372) | 49,578) | 49,462) |
| Segment Activity Ratio | |||||
| Segment asset turnover1 | 0.41 | 0.39 | 0.51 | 0.46 | 0.52 |
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
Segment asset turnover = Sales to customers ÷ Identifiable assets
= 30,400 ÷ 74,710 = 0.41
| Segment activity ratio | Reportable segment | The company |
|---|---|---|
| Segment asset turnover | MedTech | MedTech segment asset turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Segment Capital Expenditures to Depreciation
Johnson & Johnson, capital expenditures to depreciation by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Innovative Medicine | 0.43 | 0.39 | 0.32 | 0.23 | 0.27 |
| MedTech | 0.81 | 0.92 | 0.85 | 0.93 | 0.95 |
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).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Innovative Medicine | Innovative Medicine segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. |
| MedTech | MedTech segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Innovative Medicine
Johnson & Johnson; Innovative Medicine; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to property, plant & equipment | 1,653) | 1,697) | 1,529) | 1,111) | 1,278) |
| Depreciation and amortization | 3,847) | 4,345) | 4,788) | 4,791) | 4,675) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.43 | 0.39 | 0.32 | 0.23 | 0.27 |
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
Segment capital expenditures to depreciation = Additions to property, plant & equipment ÷ Depreciation and amortization
= 1,653 ÷ 3,847 = 0.43
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Innovative Medicine | Innovative Medicine segment capital expenditures to depreciation ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: MedTech
Johnson & Johnson; MedTech; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to property, plant & equipment | 2,372) | 2,120) | 1,933) | 1,980) | 1,912) |
| Depreciation and amortization | 2,943) | 2,302) | 2,286) | 2,140) | 2,014) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.81 | 0.92 | 0.85 | 0.93 | 0.95 |
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
Segment capital expenditures to depreciation = Additions to property, plant & equipment ÷ Depreciation and amortization
= 2,372 ÷ 2,943 = 0.81
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | MedTech | MedTech segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Sales to customers
Johnson & Johnson, sales to customers by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Innovative Medicine | 54,759) | 67,516) | 66,715) | 59,625) | 56,096) |
| MedTech | 30,400) | 27,427) | 27,060) | 22,959) | 25,963) |
| Segments total | 85,159) | 94,943) | 93,775) | 82,584) | 82,059) |
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).
Income (loss) before tax
Johnson & Johnson, income (loss) before tax by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Innovative Medicine | 18,246) | 18,831) | 19,475) | 14,398) | 10,877) |
| MedTech | 4,669) | 4,607) | 4,373) | 3,044) | 7,286) |
| Segments total | 22,915) | 23,438) | 23,848) | 17,442) | 18,163) |
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).
Identifiable assets
Johnson & Johnson, identifiable assets by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Innovative Medicine | 58,324) | 82,504) | 89,457) | 93,513) | 82,910) |
| MedTech | 74,710) | 70,956) | 53,372) | 49,578) | 49,462) |
| Segments total | 133,034) | 153,460) | 142,829) | 143,091) | 132,372) |
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).
Additions to property, plant & equipment
Johnson & Johnson, additions to property, plant & equipment by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Innovative Medicine | 1,653) | 1,697) | 1,529) | 1,111) | 1,278) |
| MedTech | 2,372) | 2,120) | 1,933) | 1,980) | 1,912) |
| Segments total | 4,025) | 3,817) | 3,462) | 3,091) | 3,190) |
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).
Depreciation and amortization
Johnson & Johnson, depreciation and amortization by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 29, 2019 | |
|---|---|---|---|---|---|
| Innovative Medicine | 3,847) | 4,345) | 4,788) | 4,791) | 4,675) |
| MedTech | 2,943) | 2,302) | 2,286) | 2,140) | 2,014) |
| Segments total | 6,790) | 6,647) | 7,074) | 6,931) | 6,689) |
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).