Johnson & Johnson ratio ANALYSIS-VALENTINA RINCON b

FINANCIAL HEALTH OF THE COMPANY

LIQUIDITY:

  • Johnson & Johnson show consistency in their current and quick ratios
  • Current assets double current liabilities
  • Quick ratio for 2015 was 1.77

LEVERAGE:

  • Low financial risk
  • Debt to total assets ratio and debt to equity ratio of 0.458 and 0.845 respectively
  • Times interest ratio of 36.725 in average

ACTIVITY:

  • Turnover of inventory and fixed assets show good company performance
  • Total assets turnover low (0.53), but compared to industry is good.
Main competitors average 0.38 for 2015 in total assets turnover
  • Good ability to collect debt

PROFITABILITY:

  • Gross profit margin has increased over the last two years
  • EPS increased from 4.923 in 2013 to 5.55 in 2015
  • P/E declined due to a decrease in price per share
Figure 1: Johnson & Johnson market price per share

REFERENCES

Amgen Inc. (AMGN) | Long-term (Investment) Activity. (n.d.). Retrieved from https://www.stock-analysis-on.net/NASDAQ/Company/Amgen-Inc/Ratios/Long-term-Investment-Activity

Johnson & Johnson. (n.d.).[Graph]. Retrieved February 02, 2017, from https://www.google.com/finance?cid=666601

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