Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Johnson & Johnson, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
U.S. taxes	2,200)	2,705)	2,378)	1,525)	1,026)
International taxes	2,604)	3,090)	3,069)	2,452)	1,898)
Currently payable	4,804)	5,795)	5,447)	3,977)	2,924)
U.S. taxes	(2,539)	(3,440)	(2,081)	583)	(76)
International taxes	356)	(619)	418)	(2,662)	(1,065)
Deferred	(2,183)	(4,059)	(1,663)	(2,079)	(1,141)
Provision for taxes on income	2,621)	1,736)	3,784)	1,898)	1,783)

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Currently payable	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Johnson & Johnson currently payable increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Johnson & Johnson deferred decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Provision for taxes on income	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Johnson & Johnson provision for taxes on income decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Johnson & Johnson, effective income tax rate (EITR) reconciliation

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
U.S. statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
International operations	-5.20%	-8.10%	-4.50%	-16.40%	-9.90%
U.S. tax settlements	1.00%	-3.00%	0.00%	0.00%	0.00%
Consumer health separation	0.00%	0.00%	2.20%	0.00%	0.00%
U.S. taxes on international income	-2.60%	-0.30%	-1.90%	6.70%	2.70%
U.S. state taxes	1.50%	1.00%	0.30%	0.00%	0.00%
Tax benefits from loss on capital assets	0.00%	0.00%	0.00%	-1.30%	-1.20%
Tax benefits on share-based compensation	-0.60%	-0.80%	-1.30%	-1.00%	-1.50%
All other	0.60%	1.70%	1.60%	-0.70%	-0.30%
Effective tax rate	15.70%	11.50%	17.40%	8.30%	10.80%

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Johnson & Johnson effective tax rate decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

Johnson & Johnson, components of deferred tax assets and liabilities

US$ in millions

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Employee related obligations	372)	586)	725)	1,244)	2,434)
Stock based compensation	717)	686)	687)	679)	627)
Depreciation & amortization	—)	—)	—)	—)	721)
R&D capitalized for tax	4,398)	3,595)	2,611)	1,664)	1,517)
Reserves & liabilities	4,444)	3,816)	2,761)	2,882)	3,466)
Inventory related	371)	359)	2,045)	2,566)	1,705)
Operating loss carryforwards	2,298)	2,145)	1,260)	1,073)	990)
Undistributed foreign earnings	1,931)	1,801)	1,565)	1,015)	812)
Miscellaneous international	1,212)	831)	1,053)	1,006)	854)
Miscellaneous U.S.	1,083)	—)	476)	495)	12)
Deferred tax assets	16,826)	13,819)	13,183)	12,624)	13,138)
Valuation allowances	(1,638)	(1,149)	—)	—)	—)
Deferred tax assets net of valuation allowances	15,188)	12,670)	13,183)	12,624)	13,138)
Depreciation of property, plant and equipment	(833)	(902)	(858)	(876)	—)
Goodwill and intangibles	(3,261)	(1,252)	(4,271)	(2,659)	—)
Non-deductible intangibles	—)	—)	—)	—)	(6,567)
Undistributed foreign earnings	(1,492)	(1,695)	(1,693)	(1,461)	(1,435)
Global intangible low-taxed income	(1,589)	(2,731)	(3,547)	(4,853)	(3,606)
Miscellaneous international	—)	—)	(65)	(39)	(211)
Miscellaneous U.S.	—)	(4)	—)	—)	—)
Deferred tax liabilities	(7,175)	(6,584)	(10,434)	(9,888)	(11,819)
Deferred income taxes	8,013)	6,086)	2,749)	2,736)	1,319)

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Johnson & Johnson deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets net of valuation allowances	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Johnson & Johnson deferred tax assets net of valuation allowances decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Deferred income taxes	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Johnson & Johnson deferred income taxes increased from 2022 to 2023 and from 2023 to 2024.

Johnson & Johnson, deferred tax assets and liabilities, classification

US$ in millions

		Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred tax assets	10,461)	9,279)	9,123)	10,223)	8,534)
	Deferred tax liabilities	2,448)	3,193)	6,374)	7,487)	7,214)

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Johnson & Johnson deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Johnson & Johnson deferred tax liabilities decreased from 2022 to 2023 and from 2023 to 2024.

Johnson & Johnson, adjustments to financial statements

US$ in millions

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	180,104)	167,558)	187,378)	182,018)	174,894)
Less: Noncurrent deferred tax assets, net	10,461)	9,279)	9,123)	10,223)	8,534)
Total assets (adjusted)	169,643)	158,279)	178,255)	171,795)	166,360)
Adjustment to Total Liabilities
Total liabilities (as reported)	108,614)	98,784)	110,574)	107,995)	111,616)
Less: Noncurrent deferred tax liabilities, net	2,448)	3,193)	6,374)	7,487)	7,214)
Total liabilities (adjusted)	106,166)	95,591)	104,200)	100,508)	104,402)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	71,490)	68,774)	76,804)	74,023)	63,278)
Less: Net deferred tax assets (liabilities)	8,013)	6,086)	2,749)	2,736)	1,319)
Shareholders’ equity (adjusted)	63,477)	62,688)	74,055)	71,287)	61,959)
Adjustment to Net Earnings
Net earnings (as reported)	14,066)	35,153)	17,941)	20,878)	14,714)
Add: Deferred income tax expense (benefit)	(2,183)	(4,059)	(1,663)	(2,079)	(1,141)
Net earnings (adjusted)	11,883)	31,094)	16,278)	18,799)	13,573)

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Johnson & Johnson, Financial Data: Reported vs. Adjusted

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Johnson & Johnson, adjusted financial ratios

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	15.84%	41.28%	18.90%	22.26%	17.82%
Adjusted net profit margin	13.38%	36.51%	17.15%	20.05%	16.44%
Total Asset Turnover
Reported total asset turnover	0.49	0.51	0.51	0.52	0.47
Adjusted total asset turnover	0.52	0.54	0.53	0.55	0.50
Financial Leverage
Reported financial leverage	2.52	2.44	2.44	2.46	2.76
Adjusted financial leverage	2.67	2.52	2.41	2.41	2.69
Return on Equity (ROE)
Reported ROE	19.68%	51.11%	23.36%	28.20%	23.25%
Adjusted ROE	18.72%	49.60%	21.98%	26.37%	21.91%
Return on Assets (ROA)
Reported ROA	7.81%	20.98%	9.57%	11.47%	8.41%
Adjusted ROA	7.00%	19.65%	9.13%	10.94%	8.16%

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Johnson & Johnson adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Johnson & Johnson adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Johnson & Johnson adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Johnson & Johnson adjusted ROE improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Johnson & Johnson adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Johnson & Johnson, Financial Ratios: Reported vs. Adjusted

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	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	14,066)	35,153)	17,941)	20,878)	14,714)
Sales to customers	88,821)	85,159)	94,943)	93,775)	82,584)
Profitability Ratio
Net profit margin¹	15.84%	41.28%	18.90%	22.26%	17.82%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	11,883)	31,094)	16,278)	18,799)	13,573)
Sales to customers	88,821)	85,159)	94,943)	93,775)	82,584)
Profitability Ratio
Adjusted net profit margin²	13.38%	36.51%	17.15%	20.05%	16.44%

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Sales to customers
= 100 × 14,066 ÷ 88,821 = 15.84%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales to customers
= 100 × 11,883 ÷ 88,821 = 13.38%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Johnson & Johnson adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Sales to customers	88,821)	85,159)	94,943)	93,775)	82,584)
Total assets	180,104)	167,558)	187,378)	182,018)	174,894)
Activity Ratio
Total asset turnover¹	0.49	0.51	0.51	0.52	0.47
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales to customers	88,821)	85,159)	94,943)	93,775)	82,584)
Adjusted total assets	169,643)	158,279)	178,255)	171,795)	166,360)
Activity Ratio
Adjusted total asset turnover²	0.52	0.54	0.53	0.55	0.50

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Total asset turnover = Sales to customers ÷ Total assets
= 88,821 ÷ 180,104 = 0.49

² Adjusted total asset turnover = Sales to customers ÷ Adjusted total assets
= 88,821 ÷ 169,643 = 0.52

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Johnson & Johnson adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	180,104)	167,558)	187,378)	182,018)	174,894)
Shareholders’ equity	71,490)	68,774)	76,804)	74,023)	63,278)
Solvency Ratio
Financial leverage¹	2.52	2.44	2.44	2.46	2.76
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	169,643)	158,279)	178,255)	171,795)	166,360)
Adjusted shareholders’ equity	63,477)	62,688)	74,055)	71,287)	61,959)
Solvency Ratio
Adjusted financial leverage²	2.67	2.52	2.41	2.41	2.69

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 180,104 ÷ 71,490 = 2.52

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 169,643 ÷ 63,477 = 2.67

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Johnson & Johnson adjusted financial leverage ratio increased from 2022 to 2023 and from 2023 to 2024.

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	14,066)	35,153)	17,941)	20,878)	14,714)
Shareholders’ equity	71,490)	68,774)	76,804)	74,023)	63,278)
Profitability Ratio
ROE¹	19.68%	51.11%	23.36%	28.20%	23.25%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	11,883)	31,094)	16,278)	18,799)	13,573)
Adjusted shareholders’ equity	63,477)	62,688)	74,055)	71,287)	61,959)
Profitability Ratio
Adjusted ROE²	18.72%	49.60%	21.98%	26.37%	21.91%

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ equity
= 100 × 14,066 ÷ 71,490 = 19.68%

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted shareholders’ equity
= 100 × 11,883 ÷ 63,477 = 18.72%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Johnson & Johnson adjusted ROE improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	14,066)	35,153)	17,941)	20,878)	14,714)
Total assets	180,104)	167,558)	187,378)	182,018)	174,894)
Profitability Ratio
ROA¹	7.81%	20.98%	9.57%	11.47%	8.41%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	11,883)	31,094)	16,278)	18,799)	13,573)
Adjusted total assets	169,643)	158,279)	178,255)	171,795)	166,360)
Profitability Ratio
Adjusted ROA²	7.00%	19.65%	9.13%	10.94%	8.16%

Based on: 10-K (reporting date: 2024-12-29), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 14,066 ÷ 180,104 = 7.81%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 11,883 ÷ 169,643 = 7.00%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Johnson & Johnson adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Johnson & Johnson (NYSE:JNJ)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Johnson & Johnson, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Johnson & Johnson, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)