Johnson & Johnson (JNJ)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 31,490,000 | 30,427,000 | 29,474,000 | 17,754,000 | 14,490,000 |
| Total assets | US$ in thousands | 180,104,000 | 167,558,000 | 187,378,000 | 182,018,000 | 174,894,000 |
| Operating ROA | 17.48% | 18.16% | 15.73% | 9.75% | 8.29% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $31,490,000K ÷ $180,104,000K
= 17.48%
The operating return on assets (ROA) of Johnson & Johnson has been steadily increasing over the past five years. In December 2020, the operating ROA was 8.29%, which then improved to 9.75% by December 2021. The trend continued with significant growth, reaching 15.73% by December 2022, further increasing to 18.16% by December 2023. However, in December 2024 the operating ROA slightly decreased to 17.48%.
This indicates that Johnson & Johnson has been effectively utilizing its assets to generate operating income over the years. The increasing trend reflects the company's ability to efficiently manage its operations and generate earnings from its asset base. A higher operating ROA suggests that the company is generating more income per dollar of assets employed, indicating improved operational efficiency and profitability. Investors and stakeholders may view this trend positively as it demonstrates the company's ability to generate higher returns from its assets.
Peer comparison
Dec 31, 2024