Calculate the financial indicators of the firms J&J for the year 2018 and fill in the spaces marked in the table. Company Name: Year 2018 Chemicals and Allied Products Industry Ratios ………….. Solvency or Debt Ratios Merck J&J 2018 Debt ratio …. …. 0.47 Debt-to-equity ratio …. …. 0.38 Interest coverage ratio …. …. -9.43 Liquidity Ratios Current ratio …. …. 3.47 Quick ratio …. …. 2.12 Cash ratio …. …. 2.24 Profitability Ratios Profit margin …. …. -93.4% ROE (Return on equity), after tax …. …. -248.5 ROA (Return on assets) …. …. -146.5 Gross margin …. …. 55.3% Operating margin (Return on sales) …. …. -42.9% Activity or Efficiency Ratios Asset turnover …. …. 1.08 Receivables turnover (days) …. …. 16 Inventory turnover (days) …. …. 36 Price Ratios Dividend Payout Ratio …. …. 0.15 Financial Statements Johnson & Johnson (JNJ) Balance Sheet December 31, 2018 ($ in millions) ASSETS Current Assets Cash, cash equivalents and short-term investments $19,687 Receivables 14,098 Inventory 9,549 Other current assets 2,699 Total Current Assets: 46,033 Noncurrent Assets Property, plant and equipment, net 17,035 Net Intangible assets (including goodwill) 78,064 Other noncurrent assets 11,822 Total Noncurrent Assets: 106,921 TOTAL ASSETS: $152,954 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable 7,537 Accrued liabilities 11,517 Short term debt 2,800 Other noncurrent liabilities 9,376 Total current liabilities: 31,230 Noncurrent Liabilities Long-term debt and lease obligation 27,684 Liabilities, other than long-term debt (pension, deferred tax, other) 34,288 Total noncurrent liabilities: 61,972 TOTAL LIABILITIES: 93,202 Stockholders’equity Common stock 3,120 Treasury stock, value -34,362 Accumulated other comprehensive loss -15,222 Retained earnings 106,216 Total stockhholders’equity 59,752 Total Liabilities and Stockholders’Equity: $152,954 Johnson & Johnson (JNJ) Income Statement For period ending December 31, 2018 ($ in millions) Revenues Revenues, net $81,581 Cost of Revenue -27,091 Gross profit: 54,490 Operating Expenses -34,692 Operating Income: 19,798 Nonoperating income (expense) -794 Interest and debt expense -1,005 Income from continuing operations before income taxes: 17,999 Income tax expense -2,702 Net Income available to stockholder $15,297 Dividends paid to Stockholders -9,494 Retained Earnings $5,803
Calculate the financial indicators of the firms J&J for the year 2018 and fill in the spaces marked in the table.
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Company Name: |
Year 2018 |
Chemicals and Allied Products Industry Ratios |
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|
………….. |
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|
Solvency or Debt Ratios |
Merck |
J&J |
2018 |
|
Debt ratio |
…. |
…. |
0.47 |
|
Debt-to-equity ratio |
…. |
…. |
0.38 |
|
Interest coverage ratio |
…. |
…. |
-9.43 |
|
|
|
|
|
|
|
…. |
…. |
3.47 |
|
Quick ratio |
…. |
…. |
2.12 |
|
Cash ratio |
…. |
…. |
2.24 |
|
Profitability Ratios |
|
|
|
|
Profit margin |
…. |
…. |
-93.4% |
|
ROE (Return on equity), after tax |
…. |
…. |
-248.5 |
|
ROA (Return on assets) |
…. |
…. |
-146.5 |
|
Gross margin |
…. |
…. |
55.3% |
|
Operating margin (Return on sales) |
…. |
…. |
-42.9% |
|
Activity or Efficiency Ratios |
|
|
|
|
Asset turnover |
…. |
…. |
1.08 |
|
Receivables turnover (days) |
…. |
…. |
16 |
|
Inventory turnover (days) |
…. |
…. |
36 |
|
Price Ratios |
|
|
|
|
Dividend Payout Ratio |
…. |
…. |
0.15 |
Financial Statements
|
Johnson & Johnson (JNJ) Balance Sheet |
|
|
December 31, 2018 ($ in millions) |
|
|
ASSETS |
|
|
Current Assets |
|
|
Cash, cash equivalents and short-term investments |
$19,687 |
|
Receivables |
14,098 |
|
Inventory |
9,549 |
|
Other current assets |
2,699 |
|
Total Current Assets: |
46,033 |
|
Noncurrent Assets |
|
|
Property, plant and equipment, net |
17,035 |
|
Net Intangible assets (including |
78,064 |
|
Other noncurrent assets |
11,822 |
|
Total Noncurrent Assets: |
106,921 |
|
TOTAL ASSETS: |
$152,954 |
|
LIABILITIES AND EQUITY |
|
|
Liabilities |
|
|
Current Liabilities |
|
|
Accounts Payable |
7,537 |
|
Accrued liabilities |
11,517 |
|
Short term debt |
2,800 |
|
Other noncurrent liabilities |
9,376 |
|
Total current liabilities: |
31,230 |
|
Noncurrent Liabilities |
|
|
Long-term debt and lease obligation |
27,684 |
|
Liabilities, other than long-term debt (pension, |
34,288 |
|
Total noncurrent liabilities: |
61,972 |
|
TOTAL LIABILITIES: |
93,202 |
|
Stockholders’equity |
|
|
Common stock |
3,120 |
|
|
-34,362 |
|
Accumulated other comprehensive loss |
-15,222 |
|
|
106,216 |
|
Total stockhholders’equity |
59,752 |
|
Total Liabilities and Stockholders’Equity: |
$152,954 |
|
Johnson & Johnson (JNJ) Income Statement |
|
|
For period ending December 31, 2018 ($ in millions) |
|
|
Revenues |
|
|
Revenues, net |
$81,581 |
|
Cost of Revenue |
-27,091 |
|
Gross profit: |
54,490 |
|
Operating Expenses |
-34,692 |
|
Operating Income: |
19,798 |
|
Nonoperating income (expense) |
-794 |
|
Interest and debt expense |
-1,005 |
|
Income from continuing operations before income taxes: |
17,999 |
|
Income tax expense |
-2,702 |
|
Net Income available to stockholder |
$15,297 |
|
Dividends paid to Stockholders |
-9,494 |
|
Retained Earnings |
$5,803 |
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|
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