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Johnson Financial Analysis Essay

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Johnson Financial Analysis Essay
Financial Analysis Report for Johnson & Johnson

Strategic Management

Table of Contents
I. Introduction
II. Summary of Operations
a. Net sales
b. Gross margin
c. Operating margin
d. Income before taxes
e. Net income
f. Summary of operations data assessment/interpretation
III. Financial Position
a. Working capital
b. Net property, plant & equipment
c. Total assets
d. Long term assets
e. Stockholders’ equity
f. Financial position data assessment/interpretation summary
IV. Financial Ratios
a. Liquidity
b. Leverage
c. Profitability
d. Efficiency
e. Financial ratios data assessment/interpretation summary
V. Historical View of Financial
…show more content…
The company focuses on the development of products related to health and well-being. The company has more than 275 companies, which are located in 60 different countries. It is the world’s sixth-largest consumer health company, the world’s eighth-largest pharmaceuticals company, the world’s fifth-largest biologics company, the world’s largest diagnostics company, and provides the world’s largest and most diverse medical devices (Our Company, n.d.)
Summary of Operations
Financial Position
Johnson & Johnson’s working capital has steadily increased over the last 3-years. It increased from $9,529 (millions) in 2010 to $11,141 (millions) in 2011. It continued to increase to $12,973 (millions) in 2012.

Johnson & Johnson’s net property, plant, and equipment increased over the last 3-years. The net value of the company’s fixed assets increased from $14,553 (millions) in 2010 to $16,097 (millions) in 2012.

The total assets for the company have increased over the last 3-years. It was $102,908 (millions) in 2010, which increased to $113,644 (millions) in 2011. In 2012, it increased to $121,347
…show more content…
The gross profit margin is calculated as gross profit divided by sales. The gross profit margin percentage measures the percentage of sales dollars remaining after the company has paid for its goods. In 2010, the gross profit margin was 69.49%. It declined to 68.69% in 2011. In 2012, the gross profit margin declined even further to 67.78%. The operating profit margin is calculated as operating earnings divided by sales. The operating profit margin measures the percentage of sales dollars remaining after all costs and expenses other than interest and taxes are deducted. It is the pure profits earned from the sales dollar. A higher operating profit margin is preferred. In 2010, the operating profit margin was 26.84%. In 2011, it declined to 23.96%. In 2012, it continued to decline to

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