Johnson & Johnson (JNJ)
Pretax margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 16,687,000 | 17,543,000 | 41,141,000 | 42,155,000 | 37,704,000 | 37,889,000 | 16,273,000 | 15,351,000 | 21,950,000 | 21,858,000 | 20,387,000 | 21,209,000 | 22,776,000 | 19,587,000 | 20,139,000 | 17,417,000 | 16,497,000 | 19,068,000 | 16,314,000 | 19,415,000 |
| Revenue (ttm) | US$ in thousands | 88,452,000 | 87,541,000 | 86,229,000 | 88,966,000 | 88,632,000 | 87,176,000 | 85,962,000 | 84,760,000 | 87,282,000 | 91,851,000 | 95,224,000 | 94,514,000 | 93,356,000 | 91,027,000 | 88,747,000 | 83,766,000 | 82,174,000 | 80,742,000 | 80,385,000 | 82,573,000 |
| Pretax margin | 18.87% | 20.04% | 47.71% | 47.38% | 42.54% | 43.46% | 18.93% | 18.11% | 25.15% | 23.80% | 21.41% | 22.44% | 24.40% | 21.52% | 22.69% | 20.79% | 20.08% | 23.62% | 20.29% | 23.51% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $16,687,000K ÷ $88,452,000K
= 18.87%
The pretax margin of Johnson & Johnson has fluctuated over the past few years, showing some variability in the company's profitability before taxes. The pretax margin was relatively stable in the range of 20% to 25% from March 2020 to September 2022, indicating consistent profitability levels. However, there was a notable increase in pretax margin in the latter part of 2022 and the first half of 2023, reaching a peak of around 47%. This significant jump in profitability may have been due to various factors such as improved cost management, increased revenue, or one-time gains.
Subsequently, there was a sharp decline in pretax margin in the third quarter of 2023 to 43.46% followed by another decrease to 42.54% in the fourth quarter of 2023. These sudden drops in pretax margin raise concerns about the company's operational efficiency or cost structure during that period.
The trend continued into 2024 with pretax margin showing a substantial recovery in the first half of the year, exceeding 47% by June 2024. However, there was a significant decline again in the third quarter of 2024 to 20.04% and another decrease to 18.87% by the end of the year. These fluctuations in pretax margin in 2024 suggest potential challenges that Johnson & Johnson may have faced in maintaining consistent profitability levels.
In conclusion, the pretax margin of Johnson & Johnson has shown both stability and volatility in recent years, reflecting changes in the company's financial performance and underlying business conditions. Further analysis would be needed to understand the specific drivers behind these fluctuations and their implications for the company's overall financial health and strategic direction.
Peer comparison
Dec 31, 2024