Johnson & Johnson:Comparative Analysis Valentina rincon


  • Johnson & Johnson has been constant in the last three years
  • Most of the assets and liabilities have had changes of less than 1 % from 2013-2015
  • Most important changes: cash and cash equiv (5.48%), marketable securities (12.23%), and retained earnings (10.42%).


  • Consistency in the items relative to the sales figure.
  • Changes of less than 1%, except for other income (6.45%).
  • Most important items: cost of products sold (30.73%) and selling, marketing, and administrative expenses (30.26%).


  • Johnson & Johnson has 10.29% of its assets in cash and equiv, while Pfizer has only 2.17%
  • Johnson & Johnson has 45.13% on current assets, in contrast with Pfizer and Merck range between 26% and 29%
  • Most important difference: Percentage of retained earnings, J&J (77.86%), Pfizer (42.99%), and Merck (44.56%).
  • J&J and Merck: Cost of goods sold 34.27%, but Pfizer has only 19.75%.
  • Similarity among three companies in the percent of COGS and operating expenses relative to sales.


  • Strengths: recognition, broad portfolio, financial stability.
  • Leader in the industry with sales of more than $70,074 million in contrast to competitors (less than $50,000)
  • Financial stability implies better ability to get financing and more investments.
  • Weaknesses: strong competition, risk of market fluctuations in the world.
  • Strong competition reduces ability of growth in the future

ROA, ROCE, Financial Leverage

"ROA is an indicator of how profitable a company is relative to its total assets"
  • Johnson and Johnson ROA: 10.42% in 2013, 12.52% in 2014, and 11.55% in 2015.
"ROCE" is a financial ratio that measures a company's profitability and the efficiency with which its capital is employed"
  • Johnson & Johnson ROCE: 18.69% in 2015.
  • Compared to competitors: Pfizer and Merck 7.35% in 2015.
  • Financial leverage is analyzed with debt/assets ratio, debt/equity ratios, long-term debt/equity.
  • Johnson & Johnson: 0.467, 0.875, 0.485 respectively.


Bhasin, H. (2016, December 06). SWOT analysis of Johnson and Johnson - J & J SWOT analysis. Retrieved from

Return on Capital Employed (ROCE). (2015, September 30). In Investopedia. Retrieved from

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