Johnson & Johnson (JNJ)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 30,918,000 | 17,970,000 | 41,261,000 | 42,999,000 | 38,608,000 | 38,819,000 | 17,062,000 | 15,832,000 | 22,226,000 | 22,017,000 | 20,515,000 | 21,339,000 | 22,959,000 | 19,797,000 | 20,373,000 | 17,656,000 | 16,698,000 | 19,267,000 | 16,517,000 | 19,656,000 |
| Long-term debt | US$ in thousands | 30,651,000 | 31,289,000 | 31,636,000 | 25,082,000 | 25,881,000 | 26,051,000 | 33,901,000 | 34,928,000 | 26,886,000 | 27,603,000 | 28,292,000 | 28,851,000 | 29,985,000 | 30,130,000 | 30,310,000 | 30,263,000 | 32,635,000 | 32,680,000 | 25,062,000 | 25,393,000 |
| 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 |
| Return on total capital | 30.27% | 17.71% | 39.99% | 45.21% | 40.79% | 39.90% | 15.65% | 14.96% | 21.44% | 21.54% | 19.60% | 20.61% | 22.07% | 19.72% | 20.40% | 18.37% | 17.41% | 19.83% | 18.76% | 22.67% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $30,918,000K ÷ ($30,651,000K + $71,490,000K)
= 30.27%
Johnson & Johnson's return on total capital has shown fluctuations over the past few years. The ratio ranged from a high of 45.21% on March 31, 2024, to a low of 14.96% on March 31, 2023. The company's return on total capital was above 20% for most of 2022 and 2023, indicating efficient use of capital to generate profits. However, there was a significant increase in the return on total capital in the second half of 2023, reaching 39.90% on September 30, 2023, and further increasing to 40.79% on December 31, 2023.
The return on total capital dipped in the first half of 2024, with a notable decrease to 17.71% on September 30, 2024. This was followed by a recovery in the ratio, reaching 30.27% on December 31, 2024. Overall, Johnson & Johnson's return on total capital demonstrates variability, reflecting changes in the company's profitability relative to its total invested capital.
Peer comparison
Dec 31, 2024