Johnson & Johnson (JNJ)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 17,646,000 | 16,715,000 | 19,686,000 | 17,788,000 |
| Long-term debt | US$ in thousands | 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 | 26,494,000 | 26,919,000 | 27,699,000 | 27,660,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 59,471,000 | 58,210,000 | 60,785,000 | 58,955,000 |
| Return on total capital | 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% | 20.53% | 19.63% | 22.25% | 20.54% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $38,608,000K ÷ ($25,881,000K + $68,774,000K)
= 40.79%
Over the past eight quarters, Johnson & Johnson has shown a consistent performance in terms of return on total capital. The return on total capital has ranged from a low of 19.96% in Q1 2023 to a high of 24.68% in Q3 2023. This indicates that the company has been effectively utilizing its total capital to generate profits for its shareholders. The average return on total capital over this period is approximately 21.96%, reflecting the company's ability to generate solid returns on the total investment in its operations. Overall, Johnson & Johnson's stable and relatively high return on total capital indicates efficient capital management and strong operational performance.
Peer comparison
Dec 31, 2023