Johnson & Johnson (JNJ)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 35,153,000 | 17,941,000 | 20,878,000 | 14,714,000 | 15,119,000 |
| Total assets | US$ in thousands | 167,558,000 | 187,378,000 | 182,018,000 | 174,894,000 | 157,728,000 |
| ROA | 20.98% | 9.57% | 11.47% | 8.41% | 9.59% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $35,153,000K ÷ $167,558,000K
= 20.98%
Johnson & Johnson's return on assets (ROA) has shown fluctuations over the past five years. The ROA stood at 20.98% as of December 31, 2023, representing a significant improvement compared to the previous year's 9.57%. This indicates that the company generated $0.2098 in net income for every dollar of assets in 2023.
In 2022, the ROA was 11.47%, showing a decrease from the previous year's 8.41%. Despite the decline, the company still managed to generate a reasonable return on its assets. The ROA was relatively stable in 2021 at 8.41% compared to 9.59% in 2019.
Overall, Johnson & Johnson's ROA has displayed a positive trend, with a sharp increase in 2023 indicating efficient asset utilization and profitability. It is essential for investors to monitor this ratio to assess the company's performance in effectively generating profits from its assets.
Peer comparison
Dec 31, 2023