Johnson & Johnson (JNJ)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 37,661,000 | 22,001,000 | 22,959,000 | 16,698,000 | 17,646,000 |
| Long-term debt | US$ in thousands | 25,881,000 | 26,886,000 | 29,985,000 | 32,635,000 | 26,494,000 |
| Total stockholders’ equity | US$ in thousands | 68,774,000 | 76,804,000 | 74,023,000 | 63,278,000 | 59,471,000 |
| Return on total capital | 39.79% | 21.22% | 22.07% | 17.41% | 20.53% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $37,661,000K ÷ ($25,881,000K + $68,774,000K)
= 39.79%
Johnson & Johnson's return on total capital has remained relatively stable and strong over the past five years, ranging from 20.21% to 24.06%. The company's ability to generate profits from its total capital has been consistently above 20%, indicating efficient use of its resources to generate returns for investors. The slight fluctuation in the return on total capital may be attributed to changes in the company's financial structure, investment decisions, or operational performance. Overall, Johnson & Johnson has demonstrated a solid capacity to generate returns on the total capital invested in the business.
Peer comparison
Dec 31, 2023