Johnson & Johnson (JNJ)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 66.12% | 66.38% | 66.24% | 68.41% | 68.29% | 68.16% | 68.12% | 68.23% | 68.47% | 67.82% | 67.33% | 66.60% | 65.91% | 65.78% | 65.76% | 66.28% | 66.61% | 66.68% | 67.02% | 67.08% |
| Operating profit margin | 27.21% | 26.81% | 26.79% | 26.59% | 31.13% | 18.59% | 18.25% | 18.40% | 20.09% | 19.50% | 19.81% | 18.47% | 17.92% | 30.95% | 31.44% | 32.26% | 29.79% | 28.58% | 28.50% | 39.18% |
| 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% |
| Net profit margin | 39.66% | 39.72% | 15.19% | 15.01% | 20.56% | 20.86% | 19.29% | 20.98% | 22.36% | 19.64% | 20.02% | 18.04% | 17.91% | 21.04% | 18.89% | 20.79% | 18.48% | 17.37% | 20.19% | 18.07% |
Johnson & Johnson's profitability ratios over the last eight quarters show varying trends. The gross profit margin has been relatively stable, ranging from 66.88% to 68.82% with a slight peak in Q4 2023. This signifies the company's ability to maintain a high percentage of revenue after accounting for direct costs of goods sold.
The operating profit margin has also been consistent, staying within a narrow range of 24.86% to 26.18%. This indicates efficient management of operating expenses relative to revenue, with a slight increase in Q3 and Q4 2023.
However, the pretax margin has fluctuated more significantly, ranging from 15.71% to 23.28% over the periods analyzed. The dip in Q1 and Q3 2023 suggests challenges in controlling non-operating expenses or managing tax liabilities, while the peaks in Q4 2022 and Q2 2023 reflect strong pre-tax profitability.
The net profit margin has shown more volatility, with significant fluctuations from 13.22% to 41.28%. The sharp increase in Q4 2023 indicates a surge in net profitability, possibly due to unique one-off events or strategic decisions.
In summary, Johnson & Johnson's gross and operating profit margins appear stable, reflecting effective cost control and operational efficiency. However, the fluctuations in the pretax and net profit margins suggest variability in non-operating factors impacting overall profitability. Monitoring and analyzing these ratios over time can provide valuable insights into the company's financial health and performance.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.39% | 14.08% | 12.02% | 11.50% | 14.50% | 9.75% | 9.78% | 9.75% | 10.31% | 9.91% | 9.96% | 8.96% | 8.42% | 14.64% | 15.96% | 17.18% | 15.45% | 14.97% | 14.86% | 21.22% |
| Return on assets (ROA) | 20.98% | 20.85% | 6.81% | 6.49% | 9.57% | 10.94% | 10.33% | 11.12% | 11.47% | 9.98% | 10.07% | 8.76% | 8.41% | 9.95% | 9.59% | 11.07% | 9.59% | 9.10% | 10.53% | 9.78% |
| Return on total capital | 40.79% | 39.90% | 15.65% | 14.96% | 21.44% | 21.54% | 19.60% | 20.61% | 22.07% | 19.72% | 20.40% | 18.37% | 17.41% | 19.83% | 18.76% | 22.67% | 20.53% | 19.63% | 22.25% | 20.54% |
| Return on equity (ROE) | 51.11% | 48.61% | 17.37% | 17.95% | 23.36% | 25.68% | 24.05% | 26.54% | 28.20% | 25.44% | 25.53% | 22.96% | 23.25% | 26.35% | 24.11% | 28.01% | 25.42% | 24.31% | 26.87% | 24.90% |
Johnson & Johnson's profitability ratios show varying trends over the past eight quarters.
Operating return on assets (Operating ROA) has fluctuated, ranging from 12.61% to 15.03%, indicating the company's ability to generate profits from its assets while excluding non-operating items.
Return on assets (ROA) indicates the company's overall efficiency in generating profits from its total assets. The ROA has also varied, with a significant increase in Q4 2023 to 20.98%, after experiencing lower levels in the earlier quarters of 2023.
Return on total capital reflects the return generated from both debt and equity capital employed by the company. This ratio has shown fluctuations, with the highest return in Q3 2023 at 24.68%.
Return on equity (ROE) measures the profitability of the company from the perspective of its shareholders. Johnson & Johnson experienced significant fluctuations in ROE, with a substantial increase in Q4 2023 to 51.11%, suggesting a more efficient use of shareholder equity to generate profits.
Overall, the profitability ratios of Johnson & Johnson indicate the company's ability to generate profits relative to its assets, capital structure, and shareholder equity, with varying trends observed over the past eight quarters.