Johnson & Johnson (JNJ)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 14,066,000 | 14,684,000 | 38,018,000 | 38,476,000 | 35,153,000 | 34,624,000 | 13,054,000 | 12,724,000 | 17,941,000 | 19,157,000 | 18,366,000 | 19,830,000 | 20,878,000 | 17,880,000 | 17,767,000 | 15,115,000 | 14,714,000 | 16,986,000 | 15,185,000 | 17,166,000 |
| Total stockholders’ equity | US$ in thousands | 71,490,000 | 70,158,000 | 71,538,000 | 70,020,000 | 68,774,000 | 71,228,000 | 75,149,000 | 70,869,000 | 76,804,000 | 74,599,000 | 76,357,000 | 74,709,000 | 74,023,000 | 70,272,000 | 69,580,000 | 65,834,000 | 63,278,000 | 64,473,000 | 62,978,000 | 61,294,000 |
| ROE | 19.68% | 20.93% | 53.14% | 54.95% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $14,066,000K ÷ $71,490,000K
= 19.68%
Johnson & Johnson's return on equity (ROE) has shown some fluctuations over the past few years. The ROE was relatively high at the beginning of the period, reaching 28.01% as of March 31, 2020. However, there was a decline in ROE to 23.25% by the end of December 2020.
Throughout 2021 and the first half of 2022, the ROE improved gradually, reaching a peak of 28.20% by the end of December 2021. This indicates that the company was efficiently utilizing its equity to generate profits during this period.
From March 2023 to June 2024, there was a significant drop in ROE, falling to as low as 17.37% in June 2023. However, the ROE saw a notable increase in the third quarter of 2023, reaching 48.61%, and remained at high levels until the first half of 2024, with values above 50%.
The decrease in ROE towards the end of 2024, dropping to 19.68% by December 31, 2024, may indicate a decrease in profitability relative to the equity. It is important for stakeholders to monitor the ROE closely as it provides insights into the company's ability to generate returns on the shareholders' equity invested in the business.
Peer comparison
Dec 31, 2024