...Universidad Interamericana de Arecibo MBA Program of Business and Administration Johnson & Johnson: Company Analysis By: Rosemarie Aviles I. INTRODUCTION The purpose of this paper is to analyze the financial performance of Johnson & Johnson. The analysis includes a brief background of the company, discussion over the economic outlook and market competition, followed by its financial performance, and article that talks about the company’s portfolio and credit ranking. Comments about the company’s future are also included along with the conclusion and references. II. BACKGROUND Johnson & Johnson Corporation was founded in 1886 by Robert Wood Johnson, an American entrepreneur and industrialist. Inspired by the developing scientific understanding of proper sanitation and germ theory, Johnson aimed to make antiseptic surgical procedures easier. Through numerous targeted acquisitions and research over the next century, the company steadily diversified its business to encompass pharmaceuticals, medical devices, and consumer packaged goods. Johnson & Johnson (J&J) is one of the largest healthcare firms in the world and one of the most diversified. Its operations are organized into three business segments: pharmaceutical, which generates 47 percent of revenues and 58 percent of operating profits; medical devices and diagnostics, which account for 36 percent of revenues and 31 percent of operating profits; and consumer, which contributes 17...
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...Brochure More information from http://www.researchandmarkets.com/reports/576422/ Johnson & Johnson Strategic Analysis Profile Description: - The Johnson & Johnson Strategic Analysis Profile is a comprehensive profile of the company including both quantitative and qualitative research. The report examines the Johnson & Johnsons business structure and operations, history and products, and provides an analysis of its key revenue lines. The profile provides strategic insight on the company by examining its strategy, both in terms of its value chain positioning and strategic strengths and weaknesses in form of SWOT analysis. The SWOT section studies the major internal and external factors affecting the company. In addition the profile also includes a revenue analysis section which provides a breakdown of the companys’ revenue by segment and key geographies. Report Coverage - Insightful company information, which addresses business and competitor intelligence needs. - In-depth analysis of the operational aspects of the business including business descriptions, product lines and services revenue splits, and key competitors. - Detailed financial and operational overview including key performance specific ratios. - Strategic analysis of the company using SWOT and Value Chain analysis. - Information on the company’s history, key executives, locations and subsidiaries. Why Buy? - Support business/ sales activities by understanding customers’ businesses better. -...
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...paper is Johnson & Johnson. Johnson & Johnson has more than 265 operating companies in 60 different countries worldwide. Within these 265 operating companies worldwide, Johnson & Johnson employs approximately 126,500 people. The Johnson & Johnson website states: “Employees of the Johnson & Johnson Family of Companies work with partners in health care to touch the lives of over a billion people every day, throughout the world” (2016). Johnson & Johnson’s worldwide headquarters is located and operates in New Brunswick, New Jersey, United States. Johnson & Johnson’s family of companies comprises: the sixth largest consumer health company in the world, the world’s fifth largest pharmaceutical company, the world’s most comprehensive medical devices business, the sixth largest biologics company in the world (www.jnj.com, 2016). Founded in 1887, Johnson & Johnson began with the primary purpose of research & development, manufacture and sale of health products to promote human health and well-being worldwide. As for long-term financial analysis and business diversification, in Johnson & Johnson’s last quarter they operated in three segments (www.gurufocus.com, 2016). These three segments are Consumer (comprising of 23% of their sales, and 12% of their profits); Pharmaceuticals (37% of sales and 47% of profits) and Medical Devices and Diagnostics (40% of sales and 41% of profits) (www.gurufocus.com, 2016). Overall, 53 percent of Johnson &...
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...Analysis and interpretation of company’s financial Tutor: Richard Pennington Submitted by: Ming Zhi: 5515543 Group members: Chang Zhang: 5979309 Ming Zhi: 5515543 Lu Cao: 5949139 Ya Lei Qiang: 4119832 Xuechen Wang: 6443412 Table of content 1. Background information 3 1.1 Bayer 3 1.2 Johnson & Johnson 4 2. Vertical and horizontal analysis 5 2.1 Bayer’s Horizontal Analysis of the Income Statement 5 2.2 Johnson & Johnson 10 3. Ratio analysis 15 3.1 Profitability 15 3.2 Liquidity ratios 16 3.3 Efficiency 17 3.4 Gearing 18 3.5 Investment 19 4. Recommend and explain which company is more attractive to invest in 20 4.1 Profitability 20 4.2 liquidity position 21 4.3 turnover rate 21 4.4 leverage 22 4.5 earning for shareholders 22 4.6 Market prediction and analysts’ view 22 4.7 conclusions 23 5. Limitations of ratio analysis 23 1. Background information 1.1 Bayer Bayer is a German chemical and pharmaceutical company which is founded in Barmen Germany in 1863. At present, Bayer is a global enterprise with major business domains ishealth care, agriculture and high tech polymer materials. Bayer AG, Leverkusen, Germany, acts as a strategic management holding company. It shoulders whole company’s values, goals and strategies. It is also responsible for resource allocation and managerial appointments (Bayer 2014). Led by Bayer AG, the HealthCare, CropScience and MaterialScience subgroups independently manage their business...
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...Introduction The main activity of Mead Johnson Nutrition Company is producing infants and children nutrition products and dietary supplements. It is most famous for the series of poducts such as Enfamil and Nutramigen. Mead Johson provides dietary products that suits the young human body and improves its health and growth. The company has special product lines for children suffering from nutrition problems and infants with deceases that require special diet. The company, in conjunction with pediatrists and other medical professionals, is conducting wide researches to develop their products. Presently, Mead Johson Company has eight families of products that are available in the markets worldwide. Three manufacturing facilities in theU.S. supply products to the local market. In addition, there is a facility in Mexico and in Brazil. European market is supplied with products from the manufacturing facility located in Netherlands and Asian market – from three facilities located in China, Thailand and Phillipines . Sales for the first six months of 2013 were $2,093.2 million, with the largest input from Latin American and Asian markets. Asset value for the period ending December 31, 2012 totaled $3,258.2 million . Table 1. Key Ratios (MJN) Key ratios (MJN) 2007 2008 2009 2010 2011 2012 TTM Earnings Per Share USD 5.84 2.32 1.99 2.2 2.47 2.95 3 Net Margin % 16.4 13.67 14.14 14.41 13.83 15.49 15.25 Return on Assets % 33.72 29.58 23.29 20.75 20.1 20.07 19.53 Return on...
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...Pfizer (PFE) Financial Analysis for 2012, 2013 and 2014: Ratio Analysis Abstract The following is a list of these ratios, in conjunction with associative details and background to itemize and explicate the overall financial enquiry: Earnings per Share (EPS), which will illustrate current, along with expected, product losses, unfavorable impact and any adverse change in a foreign exchange rate, along with adjustable income attributable to Pfizer and its shareholder's guidance. The next ratio considered would be Profit Margin Ratio, or Net Profit Margin, to characterize the settlement of adjusted income and weakened EPS guidance to reported net income. With the Return on Assets ratio, stakeholders can configure and acquire current, as well as anticipated dividends, all while maintaining sufficient capital to invest successively and increase global shareholder value – which for now, can maintain to support the annual dividend growth, in addition to the accompanied Gross Profit Rate. Together with this, a Return on Common Stockholders’ Equity can be taken into account with regards to commercial and business development opportunities – leading to a direct, shareholder-value enhancement through actual dividends and repurchases. On the other side of the spectrum, Pfizer’s Current and Cash Debt Coverage ratios clarify and expound upon the potential, yet significant, expected adverse events on revenues due to possible loss and expiration of intellectual property and licensing rights...
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...Financial Reporting JOHNSON & JOHNSON ($ millions) (a) The cost of building and building equipment at the end of 2011 was $9,389. (b) As indicated in footnote number 1 to the financial statements, the company utilizes the straight-line method for financial statement purposes for all additions to property, plant, and equipment. Given that straight-line depreciation provides a lower charge for depreciation as compared to an accelerated method in the early years of an asset’s life, the accounting appears to be less conservative. (c) The cash flow statement reports the amount of interest paid in cash ($576). A review of the income statement indicates that Johnson & Johnson incurred interest expense of $571 million (net of capitalized interest of $84 see note 4). FINANCIAL STATEMENT ANALYSIS CASE (d) Free cash flow is defined as net cash flows provided by operating activities less capital expenditures and dividends. Free cash flow is the amount of discretionary cash flow a company has for purchasing additional investments, retiring its debt, purchasing treasury stock or simply adding to its liquidity. In Johnson & Johnson situation, free cash flow is computed as follows: Net cash flows from operating activities ..................... $14,298 Less: Additions to property, plant and equipment.... 2,893 Dividends........................................................... 6,156 ...
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...MGT/521 Management Johnson Controls Business Analysis Johnson Controls is a global organization that has survived numerous historical events over their 125 years in business. Not many organizations can say this, but Johnson Controls has three separate business units that through strategic planning and excellent customer communications continue to prosper despite present-day challenges. This paper will review the history of Johnson Controls including the founder’s values and call for innovative ideas, as a mutual fund manager review a SWOT analysis, and review Johnson Controls internal and external stakeholders and what is at stake for each identified group. History of Johnson Controls Johnson Controls today consists of three separate business units: automotive experience, building efficiency, and power solutions. Based out of Milwaukee, Wisconsin, Johnson Controls employs 162,000 worldwide with 2,500 employees at the corporate site, and 1,300 locations around the globe. The company’s founder, Warren Johnson successfully invented and patented in 1883 the first electric thermostat. His reason for such an inventory was to respond to the growing desire or need to regulate the environment of the individual room and reduce the cost of fuel in a more efficient way to save money to homeowners and businesses alike. In 1885 Johnson Electric Service Company officially went into business. With the success of the thermostat, Warren Johnson continued to develop his ideas...
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...JOHNSON & JOHNSON: A CASE STUDY ON SUSTAINABILITY REPORTING When compiling data for its sustainability reports, Johnson and Johnson does not request direct input from its managerial accounting staff. What should be the role of management accountants in collecting and reporting sustainability data? Could Johnson & Johnson’s sustainability reporting be improved with input from managerial accountants? Why or why not? The role of the managerial accounting staff in sustainability should extend beyond the obvious one of collecting, analyzing and reporting sustainability-related information. Many accountants fill a variety of other positions within organizations, including senior management, in which they exert a more direct influence on strategy and decision making. The managerial accounting staff has a role to play in understanding, demonstrating and achieving the efficiencies that organizations can gain from sustainable business practices. The pursuit of sustainability depends on the generation, analysis, reporting and assurance of robust and accurate information (both financial and non-financial). But it is important that the managerial accountants gain an understanding of the concepts of sustainability and the challenges it poses in achieving long term growth in shareholder value or value for money. The accountanting staff, directly or in a supportive capacity, can help organizations embed sustainability issues into strategic planning and its execution...
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...date. Rights and obligations. 3. Inventory quantities include all products, materials, and supplies on hand. Completeness. 4. Liens on the inventories are properly disclosed in notes to the financial statements. Presentation and Disclosure. 5. The client has legal title to the inventions. Rights and Obligations. 6. The financial statements disclose the amount of raw materials, work in progress, and finished goods. Valuation or Allocation. 7. Inventories include all items purchased by the company that are in transit at the balance sheet date and that have been shipped to customers on consignment. Completeness. 8. Inventories received on consignment from suppliers have been excluded from inventory. Rights and Obligations 9. Quantities times prices have been properly extended on the inventory listing, the listing is properly totaled, and the total agrees with the general ledger balance for inventories. Valuation or Allocation. 10. Slow-moving items included in inventory have been properly identified and priced. Valuation or Allocation. 11. Inventories are properly classified in the balance sheet as current assets. Rights and Obligations. Identify the assertion for items 1 through 11 above. 6-21: (Audit Evidence). In an audit of financial statements, an auditor must judge the validity of the audit evidence obtained. Required. a. In the course of an...
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...management techniques and strategies by managers in utilization of resources, enhancing the external and internal environments and ensuring a company market share so as to maximize on profits. We shall evaluate the strategic management of Johnson and Johnson. Through the analysis, major market and business strategies of the company shall be evaluated with the current external and internal business environment. Table of Contents Johnson and Johnson Strategic Management Analysis 1 Contents 1 Chapter 1 3 1.1 Executive Summary 3 1.2 Scope of the Case Study 3 2.1 Company Background 4 2.2 Vision and Mission Statements 5 2.3 Strategies 6 3 TASK A: External Environment 8 3.1 Specific Environment 8 3.1.1 Porters Five Forces 8 Figure 1 9 3.2 Generic External Environment 12 3.2.1 Pestel Analysis 12 3.3 Impacts on the industry: Threats and Opportunities 13 4 TASK B: Internal Environment 16 4.1 J&J SWOT analysis 16 4.2 Summary of Strengths and Weaknesses 17 5 Financial Analysis 19 5.1 Profitability Ratio analysis 19 Liquidity Ratios 21 6 Data Analysis 22 7 Recommendations 23 References 25 Chapter 1 1.1 Executive Summary The strategic management analysis of Johnson and Johnson Company is looking to analyze at the strategic performance of company in its micro and macro environment. J&J is one of the leading providers of healthy products and services in the world with roots in more than 151 countries. What makes...
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... Date of Submission: Title of Assignment: Financial Analysis of Mead Johnson Nutrition Company CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student's Signature: _____ ***************************************************************** Instructor's Grade on Assignment: Instructor's Comments: Table of Contents Introduction Page 3 Overview of the Company Pages 3 - 5 Financial Statements Pages 5 - 10 Financial Statement Summary Pages 10 - 13 Stock Valuation Pages 13 – 17 Discounted Value of the Firm and Terminal Value Pages 17 - 18 Consideration for Dividend Policy Page 18 Summary Pages 18 - 19 References Pages 20 - 21 Appendices Pages 21 - 28 Financial Analysis of Mead Johnson Nutrition Company The purpose and objectives of this writing are to provide a comprehensive financial analysis of a publicly traded corporation. In this case, the Meade Johnson Nutrition Company is selected for comprehensive financial analysis. Analysis will provide the reader with substantial financial information that will allow one to make a recommendation...
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...Financial Analysis and Valuation Project Summer I 2014 FIN 401 2 This valuation provides information about Procter & Gamble Co.’s (P&G) liquidity, profitability and financial stability as obtained through stock price and ratio analyses. The analysis is based on the five-year time span between 2009 and 2013. This report focuses primarily on P&G’s liquidity and credit management and overall earning power. Both time trend and peer group analyses are utilized to highlight the company’s strengths as well as weaknesses. Certain observed changes are noted and explanations are provided based upon the data collected. Johnson & Johnson (J&J) serves as the basis for the peer group analysis. Stock Price Movements In the past five years P&G has demonstrated a general upward trend in its stock prices. Towards the end of 2009, the market was just beginning to move out of the recession and P&G’s stock was at its five year low. As indicated in Chart A, the S&P 500 was also at its five year low around the same time. Until October of 2011, P&G trended more or less similarly with the S&P 500. However, after this point P&G’s progression slowed against the S&P. J&J’s growth however, better matched the growth of the market during this time. Despite the slowed growth since 2011, P&G demonstrates...
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...There are three “elements” associated in the standards of GAAS; these are general standards, standards of fieldwork, and standards of reporting (Boynton W. & Johnson R., 2006). General Standards require that every auditor must have a formal university education, practical training, and experience in auditing, and continuing education in the auditor’s professional career (Boynton W. & Johnson R., 2006). Therefore, training and ability are very important. An auditor must also be able to think objectively. An auditor cannot have any encouragement from outside sources in decision-making. The last general standard is that the auditor must be proficient and avoid any careless mistakes while contributing to the audit in review (Boynton W. & Johnson R., 2006). Standards of Fieldwork The second element is standards of fieldwork. The standards of fieldwork are the conduct of the auditor while at the entity’s place of business (Boynton W. & Johnson R., 2006). Organization is a very important task while out in the field during an audit. The auditor will have tactics and schedules in place for all personnel assisting with the audit to ensure proper motivation and supervision is given. The auditor will need to know about the entity’s business practice, accounting policies, external factors, entity’s objectives, reviews of financial performance,...
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...Johnson & Johnson study case Written by Bernd Muxel Table of content SWOT Johnson & Johnson…………………………………....…..…………………..….3 Market situation………………………………………………………..………………... 3 What to do in the Future……………………………………………………..……..…….4 List of literature……………………………………………..……………………..…….4 SWOT Johnson & Johnson Johnson and Johnson is known as the largest and most extensive healthcare producer on the planet. The company has divisions straight through consumer markets, pharmaceutical and professional medical markets. This means they have a wide variety of products to serve the people around the world. This variety allows Johnson and Johnson to have a great product diversification and not focus just on one product. The pharmaceutical, Medical Devices & Diagnostics and Consumer Health division try to act independent, this allows a greater range of choice when It comes to the decision process. One of the strength is that Johnson & Johnson has a sustainable marketing arsenal, they can fall back upon a network of affiliates, which dispose a lot of expertise in sales and marketing as in some therapy areas. The company always tries to attract joint venture possibilities, with its global sales force. Johnson & Johnson also maintained a robust financial position by utilizing cash reserves to finance timely corporate acquisitions. ( http://marketingteacher.com/) The company possesses a global sales force which proves a strong global market. The sales went...
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