Johnson & Johnson, adjustment to net earnings

US$ in millions

12 months ended:	Dec 29, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net earnings (as reported)	14,066)	35,153)	17,941)	20,878)	14,714)
Add: Securities, net change	2)	26)	(24)	(4)	1)
Net earnings (adjusted)	14,068)	35,179)	17,917)	20,874)	14,715)

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Johnson & Johnson, adjusted profitability 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	15.84%	41.31%	18.87%	22.26%	17.82%
Return on Equity (ROE)
Reported ROE	19.68%	51.11%	23.36%	28.20%	23.25%
Adjusted ROE	19.68%	51.15%	23.33%	28.20%	23.25%
Return on Assets (ROA)
Reported ROA	7.81%	20.98%	9.57%	11.47%	8.41%
Adjusted ROA	7.81%	21.00%	9.56%	11.47%	8.41%

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

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings	14,068)	35,179)	17,917)	20,874)	14,715)
Sales to customers	88,821)	85,159)	94,943)	93,775)	82,584)
Profitability Ratio
Adjusted net profit margin²	15.84%	41.31%	18.87%	22.26%	17.82%

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 × 14,068 ÷ 88,821 = 15.84%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by 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)
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings	14,068)	35,179)	17,917)	20,874)	14,715)
Shareholders’ equity	71,490)	68,774)	76,804)	74,023)	63,278)
Profitability Ratio
Adjusted ROE²	19.68%	51.15%	23.33%	28.20%	23.25%

2024 Calculations

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

² Adjusted ROE = 100 × Adjusted net earnings ÷ Shareholders’ equity
= 100 × 14,068 ÷ 71,490 = 19.68%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings	14,068)	35,179)	17,917)	20,874)	14,715)
Total assets	180,104)	167,558)	187,378)	182,018)	174,894)
Profitability Ratio
Adjusted ROA²	7.81%	21.00%	9.56%	11.47%	8.41%

2024 Calculations

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

² Adjusted ROA = 100 × Adjusted net earnings ÷ Total assets
= 100 × 14,068 ÷ 180,104 = 7.81%

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

Johnson & Johnson (NYSE:JNJ)

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