Johnson & Johnson (JNJ)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 30,427,000 | 29,474,000 | 17,754,000 | 14,490,000 | 14,238,000 |
| Total assets | US$ in thousands | 167,558,000 | 187,378,000 | 182,018,000 | 174,894,000 | 157,728,000 |
| Operating ROA | 18.16% | 15.73% | 9.75% | 8.29% | 9.03% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $30,427,000K ÷ $167,558,000K
= 18.16%
Johnson & Johnson's operating return on assets (operating ROA) has shown relatively stable performance over the past five years, ranging from 11.39% to 13.49%. The operating ROA for the most recent year, ending on December 31, 2023, was 13.14%, indicating the company generated 13.14 cents of operating income for every dollar of assets employed during that period.
The consistent operating ROA figures suggest that Johnson & Johnson has been efficient in utilizing its assets to generate operating income, reflecting effective management of operations. This stability in the operating ROA indicates that the company's operational efficiency has been fairly resilient over the years, which is a positive signal for investors and stakeholders. It also signals a level of operational consistency in generating profits relative to the size of the asset base.
Peer comparison
Dec 31, 2023