Johnson & Johnson (JNJ)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 71,490,000 | 68,774,000 | 76,804,000 | 74,023,000 | 63,278,000 |
| ROE | 19.68% | 51.11% | 23.36% | 28.20% | 23.25% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $14,066,000K ÷ $71,490,000K
= 19.68%
Johnson & Johnson's return on equity (ROE) has shown fluctuations over the years based on the data provided. The ROE increased from 23.25% as of December 31, 2020, to 28.20% by December 31, 2021, suggesting improved efficiency in generating earnings from shareholders' equity.
However, there was a slight decline in ROE to 23.36% by December 31, 2022, before experiencing a significant surge to 51.11% by December 31, 2023. This sharp increase indicates that the company was able to generate a substantial profit relative to its shareholders' equity during that period.
Subsequently, the ROE dropped to 19.68% by December 31, 2024, which may be a cause for further analysis to understand the factors contributing to this decrease. Overall, Johnson & Johnson's ROE performance fluctuated during the period under review, with notable variations in profitability relative to shareholders' equity.
Peer comparison
Dec 31, 2024