This website uses cookies to ensure you have the best experience. Learn more

Johnson & Johnson's Manufacturing Performance Analysis

1980 words - 8 pages

This paper will deliberate on an manufacturing company's yearly report. Utilizing the figured ratios, I will break down the execution of the firm. I will figure out how the firm is performing under each of the recorded degrees.
• Return on assets
• Return on equity
• Gross profit margin
• Debt to equity ratio
• Debt ratio
• Current ratio
• Quick ratio
• Inventory turnover
• Total asset turnover
• Price earnings ratio
I will additionally clarify the ratios that were computed, address different strategies for examining financial statements aside from ratio analysis. I will additionally clarify the examination of the firm, and make proposals for development. The manufacturing company I picked is Johnson & Johnson.

Return on assets
Return on assets is a pointer of how beneficial an organization is with respect to its total assets. ROA gives a thought with reference to how proficient management is at utilizing its resources to generate earnings. Figured by dividing an organization's yearly profit by its total assets, ROA is shown as a percentage. Now and then this is alluded to as "return on investment" (Investopedia, 2014). Net income divided by Average total assets. The calculated asset for Johnson & Johnson would be 10,853,000 / 112,127,500 = 9.7%.
Return on equity
Return on equity is a measure of profitability that figures what number of dollars of benefit an organization creates with every dollar of shareholders' equity. The formula for ROE is net income divided by average stockholders’ equity. The ROE for Johnson & Johnson is 10,853,000 /60,702,500 = 17.9%. ROE is more than a measure of benefit; its a measure of productivity. A climbing ROE infers that an organization is expanding its capability to create benefit without requiring as much capital. It additionally demonstrates how well an organization's administration is conveying the shareholders' capital. As it were, the higher the ROE the better. Falling ROE is typically an issue.
Nonetheless, it is paramount to note that if the quality of the shareholders' value goes down, ROE goes up. In this way, compose downs and stake buybacks can misleadingly support ROE. Similarly, an elevated amount of obligation can falsely support ROE; when its all said and done, the more obligation an organization has, the less shareholders' value it has as a percentage of total assets , and the higher its ROE is.

A few commercial enterprises have a tendency to have higher returns on value than others. Therefore, correlations of profits for value are for the most part most serious around organizations inside the same business, and the meaning of a "high" or "low" degree ought to be made inside this connection (Investinganswers, 2001-2014).
Gross profit margin
Gross margins uncover what amount of an organization gains contemplating the expenses that it acquires for preparing its items or administrations. Gross margin is a great evidence of how beneficial an organization is at the most...

Find Another Essay On Johnson & Johnson's Manufacturing Performance Analysis

R. J. Reynolds Tobacco Co Essay

2244 words - 9 pages , Johnson approached the board with the idea of a management led buyout of the company at $75 per share for a total value of $17 billion. In response to Johnson's idea, a special committee was formed to discuss putting RJR Nabisco up for auction. A bidding war ensued, and Shearson Lehman Hutton lost to Kohlberg Kravis Roberts & Co. (KKR) with a winning bid of $109 per share, $25 billion. While Kravis and Roberts of the KKR firm became famous for the

codman Essay

735 words - 3 pages recognition to those who have performed uniquely." It promotes an innovative culture among the company.At the same time, however, Johnson & Johnson's planning and control system which enhances innovation in the entire business could have negative impacts on the corporate performance. Even though it use certain formats such as five- and ten-year plans for planning and review, Johnson & Johnson gives flexibility to the process. For example

The Influence of The History of Rasselas on A Vindication of the Rights of Woman

2196 words - 9 pages The Influence of The History of Rasselas on A Vindication of the Rights of Woman         A surprising commonality found between Johnson's The History of Rasselas, Prince of Abissinia and Wollstonecraft's A Vindication of the Rights of Woman is their shared views on women's issues. This commonality is surprising since the two authors had different political viewpoints. While Johnson was a conservative Tory, Wollstonecraft was a social

Johnson & Johnson Diversity Plan

1824 words - 7 pages it is still in force today. The credo is defines the four primary responsibilities of the organization in their order of their importance. Johnson & Johnson's first responsibility is to its customers, then to its employees, then to the community, and finally to its shareholders (Lukas, 2003). Believing and enforcing in this credo is what has made this organization what it is today and helped Johnson & Johnson overcome one of the most

Reaction To Who Moved My Cheese By Spencer Johnson

1206 words - 5 pages person enjoying happiness would cease to exist. I adapted to the opportunity that this book presented to me. In conclusion, Johnson's book "Who Moved My Cheese," should not be accepted at the literal level. It requires a deeper analysis. However, once this understanding is reached, this book is capable of helping people achieve happiness. 1. Johnson, Spencer / "Who Moved My Cheese" 2. Grady, Victoria / Lecture One and Two

Fair Compensation Practices. Johnson & Johnson

581 words - 2 pages general counsel Russell C. Deyo has a total compensation package of $8.4 million yearly. He has exercised options of $2.55 million. The compensation or other high profit company's is higher then Johnson & Johnson's executive pay. An example of this is the CEO of Capital One Financial Richard D Fairbank that has a total compensation package of $73.17 million dollars annually. The 5 year compensation total for Mr. Fairbank's is $379.57 million

James Weldon Johnson

672 words - 3 pages convey the idea of black identity. Published in 1912, this piece was the first to deal with the concept of a black "passing" oneself off as white. It was not recognized as a great piece of literature until 1927, when the Harlem Renaissance was at its height, and this issue became more of a problem for blacks. -------------------------------------------------------------------------------- *Richard A. Carroll, "Black Racial Spirit: An Analysis of James Weldon Johnson's Critical Perspective," in Critical Essays on James Weldon Johnson, ed. Kenneth M. Price and Lawrence J. Oliver (New York: G.K. Hall & Co., 1997) p. 140.

Review of Kotz's Book, Judgment Days: Lyndon Baines Johnson, Martin Luther King Jr., and the Laws That Changed America.

1214 words - 5 pages institutional racism. King's increasing fierceness toward the end of his life is evident in many of his later sermons and speeches, which focus on the poor, attack capitalism and Western imperialism, and reveal his enthrallment with democratic socialism. Yet, Kotz offers little logical analysis of such speeches. Judgment Days does a fantastic job of discussing Lyndon Johnson's and J. Edgar Hoover's escalating anger at King's militancy and

Robert Johnson

1425 words - 6 pages of places. He recorded twice in Texas once in 1936 and once in 1937. He later died in 1938 by getting poisoned because he flirted with a man's wife in Mississippi.Robert Johnson had many influences that shaped his style of music. He was known to be able to play whatever the audiences asked for but he is mainly known for his recorded Delta Blues music. Johnson's main influences came from Scrapper Blackwell, Skip James, Kokomo Arnold, Charley

"A Shopkeeper's Millennium", by Paul. E. Johnson. A brief synopsis and summary of the book

649 words - 3 pages In the book, A Shopkeeper's Millennium, by Paul. E. Johnson, a closer look is taken at the society of Rochester and how it was affected by the revivals from 1815 to 1837. He does this by looking at the Rochester Directory, church records, and other documents from the city of Rochester. Yet, more importantly the author tries to explain why the revivals even took place. Johnson's theories that present themselves in the book contract Tocqueville's

Johnson & Johnson PR Campaign

4152 words - 17 pages Executive SummaryThe purpose of this paper is to provide a Public Relations Campaign to Johnson & Johnson for moving an existing production facility overseas. This is a very sensitive topic, but the business analysis showed this would in the best interest for the corporation. This PR campaign is to be reviewed with the board of directors for approval as the budget for the campaign is $277,000.00.PR CampaignThere are public relations and

Similar Essays

Johnson And Johnson Report

2043 words - 9 pages industryJohnson and Johnson's competitors include GlaxoSmithKline, Novartis, Pfizer, Merck, Aventis S.A, Procter & Gamble.J&J is engaged in the manufacturing and sale of a wide range of products in the health care field in many countries. The company worldwide business is divided into three segments: Consumer; Pharmaceutical; and Professional.Johnson & Johnson is a Family of Companies 4:Approximately 109,200 employees, more than 50,000

Organizational Technology Plan : Johnson And Johnson

3586 words - 14 pages ) Value Chain Analysis The integrity of worldwide pharmaceutical supply has been challenged by rigid global manufacturing responsibility with specialized production equipment, and long lead times for materials. This combination makes the drug manufacturing environment ripe for significant process improvement. As stated in Johnson and Johnson’s credo, the company’s first responsibility is its customers, then to employees

Johnson & Johnson Tylenol Murders Essay

2192 words - 9 pages Johnson and Johnson Case StudyBusiness Law and EthicsOutlineI. AbstractII. Identifying key playersIII. Identifying the problemIV. Analysis of the problemV. Alternative scenarios to resolve the problemVI. ConclusionAbstract: In 1982 Johnson and Johnson, the pharmaceutical company that makes Tylenol announced a nationwide recall of Tylenol; they recalled 31 million bottles, which resulted in a loss of 100 million dollars. This recall was secondary

University Of Phoenix Week 4 Paper: Project Background And Scope Paper, Mba 590

1779 words - 7 pages hundreds of products so that we may be able to live in a cleaner and healthier environment. SC Johnson's strategic thinking has made them extremely successful. In addition to helping the consumers live cleaner and healthier, SC Johnson has built a successful working environment. SC Johnson was recently named the 27th best place to work for in America (SC Johnson).Strategic Analysis and ChoiceSC Johnson carries many products such as Pledge&reg