Johnson & Johnson (JNJ)

Pretax margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	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	17,328,000	16,232,000	19,008,000	16,940,000
Revenue (ttm)	US$ in thousands	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	81,826,000	81,473,000	80,897,000	81,248,000
Pretax margin		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%	21.18%	19.92%	23.50%	20.85%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $37,704,000K ÷ $88,632,000K
= 42.54%

To analyze Johnson & Johnson's pretax margin, we can observe a downward trend from the fourth quarter of 2022 to the first quarter of 2023. The pretax margin decreased from 22.88% in Q4 2022 to 15.71% in Q1 2023. This decline could indicate potential challenges affecting the company's profitability during this period. However, it is worth noting that the pretax margin fluctuated within a relatively narrow range throughout the quarters in 2022 and 2023, reflecting some stability in the company's overall financial performance despite the observed decline. Further investigation into the factors influencing these fluctuations would provide valuable insights into Johnson & Johnson's financial health and operational efficiency.