The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 18.42% in 2019 to 41.28% in 2023.
The average EBIT Margin for the period under analysis was 28.19%, with 2020 and 2023 performing the worst and best, respectively.
In the current year, Johnson & Johnson was able to cover its interest liabilities 48.78 times in the current year- compared to 2019 when it was 55.49 times.
The Asset turnover stood at 0.47 times in 2023 from 0.53 in 2019, implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of Johnson & Johnson has increased year on year. The revenue increased by 0.64% between 2019 and 2020 and a further 4.65% decrease was recorded between 2020 and 2021. There also occurred an increase of 6.46% between 2022 and 2023 (the current period).
Johnson & Johnson’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks strong, as current ratio/acid test increased from 1.26:1/0.99:1 to 1.16:1/0.99:1 on the last year. Which implies that the company [does not have]/has enough assets to settle its current liabilities.
Capital Structure
Johnson & Johnson is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be high as it stood at 43% in the current year.