Johnson & Johnson (JNJ)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	14,066,000	35,153,000	17,941,000	20,878,000	14,714,000
Total assets	US$ in thousands	180,104,000	167,558,000	187,378,000	182,018,000	174,894,000
ROA		7.81%	20.98%	9.57%	11.47%	8.41%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $14,066,000K ÷ $180,104,000K
= 7.81%

Johnson & Johnson's Return on Assets (ROA) has shown fluctuation over the past five years. In 2020, the company had an ROA of 8.41%, which increased to 11.47% in 2021, indicating improved efficiency in generating profits from its assets. The ROA then decreased slightly to 9.57% in 2022 before experiencing a significant jump to 20.98% in 2023, reflecting a period of high profitability relative to its asset base. However, in 2024, the ROA declined to 7.81%, suggesting a possible decrease in efficiency in utilizing its assets to generate earnings. Overall, while Johnson & Johnson has demonstrated the ability to generate solid returns from its assets, there is some variability in its performance over the years that may warrant further investigation into the underlying factors influencing these fluctuations.