Johnson & Johnson (JNJ)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 16,687,000 | 36,889,000 | 21,725,000 | 22,776,000 | 16,497,000 |
| Revenue | US$ in thousands | 88,607,000 | 84,021,000 | 79,428,000 | 93,356,000 | 82,174,000 |
| Pretax margin | 18.83% | 43.90% | 27.35% | 24.40% | 20.08% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $16,687,000K ÷ $88,607,000K
= 18.83%
To analyze Johnson & Johnson's pretax margin over the specified period, we observe a fluctuation in the ratio. The pretax margin, which represents the percentage of each dollar of revenue that translates into pre-tax income, increased from 20.08% in December 2020 to 24.40% in December 2021, indicating improved profitability. The trend continued positively as the pretax margin rose to 27.35% in December 2022 and significantly spiked to 43.90% by December 2023, suggesting a robust performance and effective cost management.
However, in December 2024, the pretax margin decreased to 18.83%, marking a decline from the previous year. This drop may be attributed to various factors such as increased operating expenses or changes in revenue streams. Overall, the analysis highlights the importance of monitoring pretax margin trends to assess a company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024