Analysis of Reportable Segments
Johnson & Johnson operates in 2 segments: Innovative Medicine and MedTech.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
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Segment Profit Margin
Johnson & Johnson, profit margin by reportable segment
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Innovative Medicine | |||||
| MedTech |
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).
- Innovative Medicine Segment Profit Margin
- The profit margin for the Innovative Medicine segment exhibits an overall upward trend across the periods analyzed. Starting at 24.15% in 2020, the margin increased notably to 29.19% in 2021. Although there was a slight decrease in 2022 to 27.89%, the margin then rose sharply to a peak of 33.32% in 2023. The most recent data from 2024 shows a marginal decline to 33.21%, indicating a stabilization at a high level compared to earlier years.
- MedTech Segment Profit Margin
- The MedTech segment demonstrates a different pattern, with overall volatility and a declining tendency in recent years. The margin improved from 13.26% in 2020 to 16.16% in 2021 and continued a slight increase to 16.80% in 2022. However, from 2022 onwards, the margin declined to 15.36% in 2023 and further dropped to 11.74% in 2024, falling below the initial 2020 level. This indicates a weakening profitability trend in the MedTech segment over the latest periods.
- Comparative Insights
- The data reveals a divergent profitability trend between the two segments. Innovative Medicine's profit margin has generally improved and stabilized at a higher level, showcasing strong and sustained profitability. In contrast, MedTech experienced initial growth but faced a decline in profitability, ending the period below its starting level. This divergence may reflect differing market conditions, operational efficiencies, or strategic factors affecting each segment's financial performance.
Segment Profit Margin: Innovative Medicine
Johnson & Johnson; Innovative Medicine; segment profit margin calculation
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) before tax | |||||
| Sales to customers | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2024 Calculation
Segment profit margin = 100 × Income (loss) before tax ÷ Sales to customers
= 100 × ÷ =
- Income (loss) before tax
- The income before tax for the segment exhibited an overall increasing trend from 2020 to 2021, rising from approximately 14,398 million US dollars to 19,475 million US dollars. However, this was followed by a slight decline in 2022 and 2023, where the values dropped to 18,831 million and 18,246 million US dollars respectively. In 2024, the income before tax showed a modest recovery, increasing to 18,919 million US dollars. Despite minor fluctuations, the segment maintained a relatively high level of pre-tax income compared to the base year.
- Sales to customers
- Sales to customers increased from 59,625 million US dollars in 2020 to a peak of 67,516 million US dollars in 2022, indicating a positive growth trajectory in the initial years. However, 2023 witnessed a significant decline in sales, dropping sharply to 54,759 million US dollars. In the most recent period, 2024, sales showed a slight rebound, rising to 56,964 million US dollars, yet remaining below the peak observed in 2022. This pattern suggests volatility in customer sales, with a notable contraction following the 2022 peak.
- Segment profit margin
- The segment profit margin demonstrated a consistent upward trend over the analyzed period. Starting from 24.15% in 2020, it increased to 29.19% in 2021, experienced a slight dip to 27.89% in 2022, and then markedly improved to 33.32% in 2023. It remained relatively stable in 2024 at 33.21%. The profit margin progression indicates enhanced operational efficiency or better cost management, contributing to higher profitability despite fluctuations in sales and income before tax.
Segment Profit Margin: MedTech
Johnson & Johnson; MedTech; segment profit margin calculation
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) before tax | |||||
| Sales to customers | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2024 Calculation
Segment profit margin = 100 × Income (loss) before tax ÷ Sales to customers
= 100 × ÷ =
- Income (loss) before tax
- The income before tax showed a general upward trend from 2020 to 2023, increasing from $3,044 million to $4,669 million. However, there was a notable decline in 2024, with income before tax decreasing to $3,740 million. This indicates that despite consistent growth over the initial four years, profitability before taxation faced a setback in the latest period.
- Sales to customers
- Sales to customers exhibited consistent growth throughout the entire period. Starting at $22,959 million in 2020, sales increased steadily each year, reaching $31,857 million by the end of 2024. This upward trajectory of sales demonstrates expanding market demand or successful sales performance over the reported years.
- Segment profit margin
- The segment profit margin experienced fluctuating trends. It increased from 13.26% in 2020 to a peak of 16.8% in 2022, suggesting improving profitability efficiency. However, following the peak, profit margin declined to 15.36% in 2023 and further decreased sharply to 11.74% in 2024. This decline in margin despite growing sales suggests rising costs or other factors adversely impacting profitability in that segment during the most recent period.
Segment Return on Assets (Segment ROA)
Johnson & Johnson, ROA by reportable segment
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Innovative Medicine | |||||
| MedTech |
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).
- Innovative Medicine Segment ROA
- The ROA for the Innovative Medicine segment exhibited a consistent upward trend over the five-year period. Starting at 15.4% in 2020, it increased significantly to 21.77% in 2021, followed by a moderate rise to 22.82% in 2022. The trend continued with a more pronounced increase, reaching 31.28% in 2023 and further improving to 33.15% in 2024. This indicates a strong enhancement in asset efficiency and profitability within this segment, reflecting robust operational improvements or successful product strategies over time.
- MedTech Segment ROA
- The MedTech segment showed a more fluctuating and declining trend in ROA throughout the same period. The ROA increased from 6.14% in 2020 to a peak of 8.19% in 2021. However, after this peak, the ROA experienced a downward trajectory, decreasing to 6.49% in 2022, then slightly dropping to 6.25% in 2023, before falling more sharply to 4.44% in 2024. This pattern suggests challenges in asset utilization or profitability pressures in the MedTech segment in recent years, potentially due to increased costs, competitive pressures, or lower returns on investments.
- Comparative Insights
- Comparing the two segments, Innovative Medicine consistently outperformed MedTech in terms of ROA, with a growing gap particularly noticeable from 2022 onward. While Innovative Medicine's ROA demonstrated strong growth and improving returns on assets, MedTech's declining ROA highlights potential areas of concern that may require strategic attention. The divergent trends underscore the stronger financial performance and asset management efficiency of the Innovative Medicine segment relative to MedTech.
Segment ROA: Innovative Medicine
Johnson & Johnson; Innovative Medicine; segment ROA calculation
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) before tax | |||||
| Identifiable assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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).
1 2024 Calculation
Segment ROA = 100 × Income (loss) before tax ÷ Identifiable assets
= 100 × ÷ =
- Income (loss) before tax
- The income before tax showed an overall increasing trend from 2020 to 2024, with a notable peak in 2021 at 19,475 million US dollars. After a slight decline in 2022 and 2023 to 18,831 million and 18,246 million respectively, it rebounded to 18,919 million in 2024, indicating relative stability in profitability during these latter years.
- Identifiable assets
- There was a consistent and significant decline in identifiable assets over the five-year period. Assets reduced from 93,513 million US dollars in 2020 to 57,070 million in 2024, representing a reduction of nearly 39%. This steady decrease suggests a potential divestiture, asset impairment, or restructuring within the segment.
- Segment Return on Assets (ROA)
- The segment ROA demonstrated a strong upward trajectory from 15.4% in 2020 to 33.15% in 2024. This substantial increase signifies improved efficiency in asset utilization to generate income before tax. The marked rise in ROA especially from 2022 onward coincides with the declining asset base, implying that the division is achieving higher profitability per unit of asset.
Segment ROA: MedTech
Johnson & Johnson; MedTech; segment ROA calculation
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) before tax | |||||
| Identifiable assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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).
1 2024 Calculation
Segment ROA = 100 × Income (loss) before tax ÷ Identifiable assets
= 100 × ÷ =
- Income (loss) before tax
- The income before tax displayed an increasing trend from 2020 through 2023, rising from 3,044 million USD to a peak of 4,669 million USD in 2023. However, in the most recent period ending December 29, 2024, the income before tax decreased significantly to 3,740 million USD. This indicates a positive performance growth over four years followed by a notable decline in the latest year.
- Identifiable assets
- Identifiable assets consistently increased each year, starting from 49,578 million USD in 2020 and reaching 84,322 million USD by the end of 2024. This steady growth demonstrates expansion in asset base, suggesting ongoing investments or acquisitions within the segment.
- Segment Return on Assets (ROA)
- The segment ROA rose sharply from 6.14% in 2020 to a high of 8.19% in 2021. Thereafter, it declined gradually to 6.49% in 2022 and 6.25% in 2023, followed by a more pronounced decrease to 4.44% in 2024. Despite the initial improvement, the downward trend in ROA in the last three years, especially in 2024, indicates decreasing efficiency in generating returns from the segment’s assets.
- Overall analysis
- The MedTech segment showed robust growth in income before tax and identifiable assets through 2023, indicating expansion and profitability improvements. However, the dip in income before tax and the decline in ROA in 2024 suggest emerging challenges in maintaining profitability and asset utilization efficiency. The continuous asset growth paired with declining ROA might indicate that asset additions are not currently translating into proportional earnings increases, warranting further investigation into operational effectiveness and cost management.
Segment Asset Turnover
Johnson & Johnson, asset turnover by reportable segment
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Innovative Medicine | |||||
| MedTech |
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).
- Innovative Medicine Segment Asset Turnover
- The asset turnover ratio for the Innovative Medicine segment demonstrates a consistent upward trend over the five-year period. Starting at 0.64 in 2020, the ratio increases each subsequent year, reaching 1.00 by the end of 2024. This steady improvement indicates enhanced efficiency in utilizing assets to generate sales within this segment, reflecting positively on operational effectiveness and possibly stronger revenue growth relative to asset base expansion.
- MedTech Segment Asset Turnover
- The MedTech segment shows more volatility in its asset turnover ratios. The ratio rises from 0.46 in 2020 to a peak of 0.51 in 2021, but then declines significantly to 0.39 in 2022. Following this dip, there is a slight recovery to 0.41 in 2023, but the ratio decreases again to 0.38 in 2024. This fluctuation and overall downward movement after 2021 suggest challenges in asset utilization efficiency within the MedTech segment, potentially indicating slower sales growth, increased asset base, or operational inefficiencies.
- Comparative Insights
- Comparing both segments reveals divergent trends in asset turnover. Innovative Medicine shows continuous improvement, suggesting stronger performance in asset utilization, whereas MedTech struggles with inconsistent and declining efficiency after 2021. This contrast may signal differing market conditions, strategic priorities, or management effectiveness between segments.
Segment Asset Turnover: Innovative Medicine
Johnson & Johnson; Innovative Medicine; segment asset turnover calculation
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales to customers | |||||
| Identifiable assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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).
1 2024 Calculation
Segment asset turnover = Sales to customers ÷ Identifiable assets
= ÷ =
- Sales to Customers
- Sales figures experienced overall growth from 2020 to 2022, increasing from 59,625 million US dollars in 2020 to a peak of 67,516 million US dollars in 2022. However, a significant decline occurred in 2023, where sales dropped sharply to 54,759 million US dollars. In 2024, sales showed a slight recovery, rising to 56,964 million US dollars but remaining below the 2022 peak level.
- Identifiable Assets
- Identifiable assets demonstrated a continuous downward trend over the entire period. Starting at 93,513 million US dollars in 2020, assets progressively decreased year-over-year, reaching 57,070 million US dollars by the end of 2024. This decline highlights a substantial reduction in asset base, with the most pronounced decreases occurring between 2022 and 2023.
- Segment Asset Turnover
- The segment asset turnover ratio consistently improved each year, moving from 0.64 in 2020 to 1.00 in 2024. This steady increase indicates enhanced efficiency in utilizing assets to generate sales, despite the declining asset base. The ratio's upward trend suggests operational improvements or a strategic focus on asset-light growth within the segment.
Segment Asset Turnover: MedTech
Johnson & Johnson; MedTech; segment asset turnover calculation
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales to customers | |||||
| Identifiable assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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).
1 2024 Calculation
Segment asset turnover = Sales to customers ÷ Identifiable assets
= ÷ =
- Sales to customers
- The sales for the segment show a consistent upward trend over the five-year period. Starting from US$22,959 million in 2020, sales increased annually to reach US$31,857 million by the end of 2024. The growth was steady, with notable acceleration in the years 2023 and 2024.
- Identifiable assets
- Identifiable assets have also exhibited a significant increase, growing from US$49,578 million in 2020 to US$84,322 million in 2024. The asset base expanded considerably, particularly between 2021 and 2022, where a sharp rise can be observed, indicating possible acquisitions, investments, or revaluation of assets.
- Segment asset turnover
- The segment asset turnover ratio, which measures efficiency in using assets to generate sales, displayed a declining trend over the same period. Starting at 0.46 in 2020 and peaking slightly at 0.51 in 2021, the ratio dropped to 0.39 in 2022, followed by minor fluctuations, ending at 0.38 in 2024. This decline suggests that while sales increased, asset growth outpaced sales growth, indicating reduced efficiency in asset utilization.
Segment Capital Expenditures to Depreciation
Johnson & Johnson, capital expenditures to depreciation by reportable segment
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Innovative Medicine | |||||
| MedTech |
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).
- Innovative Medicine Capital Expenditure to Depreciation Ratio
- The ratio for Innovative Medicine reveals a consistent upward trend over the five-year period. Starting at 0.23 in 2020, the figure increased moderately each year, reaching 0.45 by the end of 2024. This steady rise indicates a growing level of capital expenditures relative to depreciation, suggesting a potentially increased investment in new assets or expansion within this segment.
- MedTech Capital Expenditure to Depreciation Ratio
- The MedTech segment exhibited a declining trend in capital expenditures relative to depreciation. Beginning at a relatively high ratio of 0.93 in 2020, the ratio dropped to 0.75 by the end of 2024, albeit with some fluctuations observed in 2021 and 2022. The decline suggests a reduction in investment activity relative to asset wear and tear or depreciation, which may indicate a shift in capital allocation strategy or a maturation phase in this segment.
- Comparative Insights
- Comparing the two segments, Innovative Medicine shows a strengthening investment focus, as reflected by its increasing ratio, whereas MedTech displays a diminishing investment trend relative to depreciation costs. This divergence could imply a strategic pivot prioritizing innovative product development and expansion over maintaining or upgrading existing MedTech assets. The overall data signal a resource reallocation favoring growth and innovation.
Segment Capital Expenditures to Depreciation: Innovative Medicine
Johnson & Johnson; Innovative Medicine; segment capital expenditures to depreciation calculation
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to property, plant & equipment | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2024 Calculation
Segment capital expenditures to depreciation = Additions to property, plant & equipment ÷ Depreciation and amortization
= ÷ =
- Additions to property, plant & equipment
- Over the analyzed period, there is a general upward trend in the additions to property, plant, and equipment, starting at $1,111 million in 2020 and increasing steadily to $1,710 million by 2024. This indicates sustained investment in fixed assets, with a noticeable jump from 2020 to 2021 and continued growth, albeit at a slower pace, in subsequent years.
- Depreciation and amortization
- Depreciation and amortization expenses exhibit a consistent declining trend from $4,791 million in 2020 to $3,760 million in 2024. This reduction suggests either a lower base of depreciable assets over time or changes in depreciation methodologies or asset lifespan assumptions.
- Segment capital expenditures to depreciation ratio
- The ratio of capital expenditures to depreciation has increased steadily from 0.23 in 2020 to 0.45 in 2024. This rising ratio implies that the segment is investing more heavily in capital expenditures relative to the amount of depreciation recognized. The trend suggests potential asset base growth or a strategic emphasis on renewing or expanding property, plant, and equipment compared to past depreciation levels.
- Overall insights
- The combined trends of increasing capital expenditures and decreasing depreciation expenses, along with a rising capital expenditure to depreciation ratio, reflect an expansionary investment phase in the segment. The increase in additions to property, plant, and equipment supports the likely growth in productive capacity or modernization efforts. Meanwhile, the decline in depreciation expense may indicate that older assets are fully depreciated or being replaced less frequently in the past, with current investments expected to impact future periods. The trend suggests a focus on strengthening the asset base, potentially to support future revenue growth and operational efficiency.
Segment Capital Expenditures to Depreciation: MedTech
Johnson & Johnson; MedTech; segment capital expenditures to depreciation calculation
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to property, plant & equipment | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2024 Calculation
Segment capital expenditures to depreciation = Additions to property, plant & equipment ÷ Depreciation and amortization
= ÷ =
- Additions to property, plant & equipment
- Over the observed five-year period, additions to property, plant, and equipment exhibited a consistent upward trend. Starting at 1,980 million US dollars in 2020, the figure decreased slightly in 2021 to 1,933 million US dollars but then increased steadily in subsequent years, reaching 2,443 million US dollars by the end of 2024. This indicates a growing investment in fixed assets, reflecting potential expansion or upgrading of facilities.
- Depreciation and amortization
- Depreciation and amortization expenses have also increased each year. Beginning at 2,140 million US dollars in 2020, this expense grew moderately to 2,286 million in 2021 and 2,302 million in 2022. A notable increase occurred thereafter, with the expense rising to 2,943 million in 2023 and 3,237 million in 2024. This pattern suggests accelerated recognition of depreciation, possibly due to increased asset base or changes in depreciation policies.
- Segment capital expenditures to depreciation ratio
- The ratio of segment capital expenditures to depreciation has generally declined over the period. It started at 0.93 in 2020, decreased to 0.85 in 2021, slightly recovered to 0.92 in 2022, then dropped more noticeably to 0.81 and 0.75 in 2023 and 2024, respectively. This decreasing ratio implies that capital expenditures are growing at a slower pace relative to depreciation, suggesting potential slowing in asset replacement or expansion relative to the consumption of existing assets.
Sales to customers
Johnson & Johnson, sales to customers by reportable segment
US$ in millions
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Innovative Medicine | |||||
| MedTech | |||||
| Segments total |
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).
- Innovative Medicine Segment Sales
- The sales for Innovative Medicine showed an overall upward trend from 2020 through 2022, increasing from 59,625 million US dollars in 2020 to a peak of 67,516 million in 2022. However, in the subsequent years, there was a noticeable decline, with sales dropping to 54,759 million in 2023. A slight recovery is visible in 2024, with sales rising to 56,964 million, yet the level still remains below the 2022 peak.
- MedTech Segment Sales
- Sales in the MedTech segment demonstrated consistent growth throughout the entire period under review. Starting at 22,959 million US dollars in 2020, the segment continuously expanded annually, reaching 31,857 million by 2024. This represents a steady upward momentum without any interruptions or declines.
- Total Segment Sales
- Total sales across all reported segments showed a similar pattern to that of the Innovative Medicine segment. The total increased from 82,584 million US dollars in 2020 to a high of 94,943 million in 2022. Following this peak, total segment sales decreased significantly to 85,159 million in 2023 but partially recovered to 88,821 million in 2024. The trend suggests that the decline in the Innovative Medicine segment was the primary contributor to the overall reduction in total sales during the later years.
- Overall Insights
- The data indicates that while the MedTech segment has consistently expanded, providing a growing revenue stream, the Innovative Medicine segment experienced volatility, with a pronounced dip after 2022 impacting total segment sales. The partial recovery in 2024 suggests some stabilization, but sales remain below their recent peak. This pattern reflects varying performance dynamics between segments, highlighting the importance of MedTech's steady growth in offsetting the fluctuations in Innovative Medicine revenue.
Income (loss) before tax
Johnson & Johnson, income (loss) before tax by reportable segment
US$ in millions
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Innovative Medicine | |||||
| MedTech | |||||
| Segments total |
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).
- Innovative Medicine Segment
- The income before tax for the Innovative Medicine segment displayed a generally upward trend from 2020 to 2021, increasing significantly from 14,398 million US dollars to 19,475 million US dollars. However, in 2022, the income before tax decreased slightly to 18,831 million US dollars and continued to decline in 2023 reaching 18,246 million US dollars. The segment showed a modest recovery in 2024, with income before tax rising to 18,919 million US dollars, though it did not return to the peak value of 2021.
- MedTech Segment
- The MedTech segment experienced consistent growth from 2020 through 2023. Income before tax increased from 3,044 million US dollars in 2020 to 4,669 million US dollars in 2023, reflecting a steady upward trajectory over four years. However, in 2024 the income before tax for this segment contracted sharply to 3,740 million US dollars, marking a significant decline compared to the prior year and reversing the trend of growth observed in the previous years.
- Total Segments
- The total income before tax across reportable segments followed a pattern similar to the individual segments. The total grew substantially from 17,442 million US dollars in 2020 to a peak of 23,848 million US dollars in 2021. This was followed by a gradual decline over the next two years, dropping to 23,438 million US dollars in 2022 and further to 22,915 million US dollars in 2023. By the end of 2024, the total income before tax decreased slightly again to 22,659 million US dollars, reflecting a continuous but moderate downward trend after the 2021 peak.
- Summary
- The analysis reveals a strong performance peak in 2021 across all segments, particularly in Innovative Medicine. Subsequent years demonstrated a downward adjustment with declining income before tax, indicating potential challenges or market conditions affecting profitability. MedTech's consistent growth until 2023 was interrupted by a marked decline in 2024, which suggests segment-specific issues during the most recent period. Overall, the data shows a recovery attempt in the Innovative Medicine segment in 2024, while the total segments maintained a slight decrease relative to the high levels of 2021, requiring attention to declining trends in both segments.
Identifiable assets
Johnson & Johnson, identifiable assets by reportable segment
US$ in millions
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Innovative Medicine | |||||
| MedTech | |||||
| Segments total |
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).
The data reveals notable shifts in the composition and magnitude of identifiable assets across two principal segments over the five-year span ending December 29, 2024.
- Innovative Medicine Segment
- This segment experienced a consistent decline in identifiable assets from 93,513 million US dollars at the end of 2020 to 57,070 million US dollars by the end of 2024. The decrease was especially pronounced between 2022 and 2023, where the value dropped sharply from 82,504 million USD to 58,324 million USD, indicating a significant reduction of approximately 29%. The downward trend suggests possible divestitures, asset impairments, changes in segment reporting, or a strategic shift away from this segment.
- MedTech Segment
- Conversely, the MedTech segment showed a positive and steady growth in identifiable assets throughout the same period. Starting at 49,578 million US dollars at the end of 2020, the assets rose incrementally each year, reaching 84,322 million US dollars by the end of 2024. The growth is especially marked between 2021 and 2022 with a substantial increase from 53,372 million USD to 70,956 million USD. This reflects strong investment, acquisition activity, or organic growth within this segment.
- Segments Total
- The aggregate of identifiable assets for both segments exhibited fluctuations over the five years. Although the total assets remained relatively stable between 2020 and 2022 (ranging from 142,829 million to 153,460 million USD), there was a notable drop in 2023 to 133,034 million USD. In 2024, assets partially recovered to 141,392 million USD. The overall variation appears to be driven largely by the decline in the Innovative Medicine segment, partially offset by the rise in MedTech.
Overall, the dynamic between the segments points to a strategic rebalancing, with intensified focus and growth in MedTech, while the Innovative Medicine segment is contracting significantly in terms of identifiable assets. This shift impacts the company’s total segment asset base, resulting in a less stable aggregate asset level across the observed period.
Additions to property, plant & equipment
Johnson & Johnson, additions to property, plant & equipment by reportable segment
US$ in millions
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Innovative Medicine | |||||
| MedTech | |||||
| Segments total |
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).
The data on additions to property, plant, and equipment across different segments reveals several notable trends over the five-year period examined.
- Innovative Medicine
- The investment in this segment has shown a consistent upward trajectory, starting at US$ 1,111 million in 2020 and gradually rising each year to reach US$ 1,710 million by 2024. The increase is steady, with only a slight dip observed in 2023, where the value decreased marginally from US$ 1,697 million in 2022 to US$ 1,653 million before rebounding. This pattern suggests ongoing commitment to growth and development in this segment, with occasional minor fluctuations.
- MedTech
- Spending in the MedTech segment started relatively high at US$ 1,980 million in 2020 but saw a modest decline in 2021 to US$ 1,933 million. After this brief reduction, the segment experienced consistent growth over the next three years, culminating in US$ 2,443 million by 2024. This indicates a renewed and increasing focus on expanding property, plant, and equipment investments within MedTech following the initial dip.
- Segments Total
- The aggregated additions for all segments combined reflect an overall growth pattern, rising from US$ 3,091 million in 2020 to US$ 4,153 million in 2024. The growth is steady each year without any declines, correlating with the individual segment trends. The data suggest a sustained increase in capital expenditure across the company’s operational segments, underpinning ongoing expansion and capacity enhancement efforts.
In summary, the capital investment in property, plant, and equipment exhibits a positive and growing trend in both key segments, with MedTech showing initial volatility followed by consistent growth, while Innovative Medicine maintains steady increases. The total segment additions confirm a broad expansion focus over the examined timeframe.
Depreciation and amortization
Johnson & Johnson, depreciation and amortization by reportable segment
US$ in millions
| Dec 29, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Innovative Medicine | |||||
| MedTech | |||||
| Segments total |
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).
- Innovative Medicine Depreciation and Amortization
- Over the five-year period, the depreciation and amortization expenses associated with Innovative Medicine show a consistent downward trend. Beginning at 4,791 million US dollars in 2020, the value slightly decreased to 4,788 million in 2021, followed by a more notable decline in subsequent years, reaching 3,760 million by the end of 2024. This steady reduction may indicate improved asset utilization, decreased capital expenditures, or changes in the asset base within this segment.
- MedTech Depreciation and Amortization
- Contrasting with the Innovative Medicine segment, MedTech demonstrates a general upward trajectory in depreciation and amortization expenses. Starting from 2,140 million US dollars in 2020, the expenses rose incrementally each year and culminated at 3,237 million in 2024. The increase appears steady, with a particularly notable acceleration from 2022 (2,302 million) to 2024. This pattern suggests ongoing investments in new assets or expansions that lead to higher amortization and depreciation charges.
- Total Segment Depreciation and Amortization
- The aggregate depreciation and amortization for both segments combined exhibited mild fluctuations without a clear directional trend. The total started at 6,931 million US dollars in 2020, peaked slightly at 7,074 million in 2021, then decreased to 6,647 million in 2022. The figures rose again modestly over the following two years, reaching 6,997 million in 2024. The overall stability in the total amount indicates that the increase in MedTech expenses effectively offsets the decreases observed in Innovative Medicine.