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.