PPwk phase 1-3
This worksheet estimates the key financial figures for a company over five years.
Summary of the 5 years projection
The analysis has focused on estimating the expected growth in revenue, assets and liabilities of Johnson & Johnson Corporation over the period of 5years. To establish this, the analysis has used the actual financial statements data for the financial year 2023 as the base year. Besides the analysis has assumed that the revenue, expenses, assets and liabilities of the company will grow at a constant rate of 5%.
According to the income statement projection the revenue of Johnson & Johnson could have grown to over $ 108billion by 2028. At the same time the net profits could have grown from the current profit of $ 13billion to $ 17billion by 2028. The growth in profits is expected to increase the cash level of the company thus improving its liquidity position.
From the balance sheet perceptive, Johnson & Johnson Corporation is expected to post strong balance sheet position over the 5 years period. This strength is expected to be driven by high current assets position and stable shareholder’s equity. More importantly the low solvency position is going to be important in increasing the competitiveness of the company and investors’ confidence (Olayinka,2022).
Reference
Olayinka, A. A. (2022). Financial statement analysis as a tool for investment decisions and assessment of companies’ performance. International Journal of Financial, Accounting, and Management, 4(1), 49-66.
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Five Year Projection Johnson & Johnson Corporation |
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Income Statement |
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(Data in thousands [000s] |
Actual |
Projection |
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FY 2023 |
FY 2024 |
FY 2025 |
FY 2026 |
FY2027 |
FY 2028 |
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Net Sales |
$85,159,000.00 |
$89,416,950.00 |
$93,887,797.50 |
$98,582,187.38 |
103,511,296.74 |
$108,686,861.58 |
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Cost of Sales |
$26,553,000.00 |
$27,880,650.00 |
$29,274,682.50 |
$30,738,416.63 |
32,275,337.46 |
$33,889,104.33 |
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Operating Expenses |
$43,544,000.00 |
$45,721,200.00 |
$48,007,260.00 |
$50,407,623.00 |
52,928,004.15 |
$55,574,404.36 |
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Operating Income |
1$5,062,000.00 |
$15,815,100.00 |
$16,605,855.00 |
$17,436,147.75 |
18,307,955.14 |
$19,223,352.89 |
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Net Income |
$13,326,000.00 |
$13,992,300.00 |
$14,691,915.00 |
$15,426,510.75 |
16,197,836.29 |
$17,007,728.10 |
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Cash Flow Statement |
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Actual |
Projections |
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FY 2023 |
FY 2024 |
FY 2025 |
FY 2026 |
FY2027 |
FY 2028 |
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Beginning Balance |
$360,000.00 |
$1,420,000.00 |
$2,533,000.00 |
$3,701,650.00 |
$4,928,732.50 |
$6,217,169.13 |
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Cash Inflow |
$22,791,000.00 |
$23,930,550.00 |
$25,127,077.50 |
$26,383,431.38 |
$27,702,602.94 |
$29,087,733.09 |
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Cash Outflow |
$21,731,000.00 |
$22,817,550.00 |
$23,958,427.50 |
$25,156,348.88 |
$26,414,166.32 |
$27,734,874.63 |
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Ending Balance |
$1,420,000.00 |
$2,533,000.00 |
$3,701,650.00 |
$4,928,732.50 |
$6,217,169.13 |
$7,570,027.58 |
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Balance Sheet |
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FY 2023 |
FY 2024 |
FY 2025 |
FY 2026 |
FY2027 |
FY 2028 |
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Cash |
$24,522,000.00 |
$25,748,100.00 |
$27,035,505.00 |
$28,387,280.25 |
$29,806,644.26 |
$31,296,976.48 |
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Accounts receivable |
$14,842,000.00 |
$15,584,100.00 |
$16,363,305.00 |
$17,181,470.25 |
$18,040,543.76 |
$18,942,570.95 |
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Inventory |
$12,444,000.00 |
$13,066,200.00 |
$13,719,510.00 |
$14,405,485.50 |
$15,125,759.78 |
$15,882,047.76 |
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Prepaid expenses |
$4,085,000.00 |
$4,289,250.00 |
$4,503,712.50 |
$4,728,898.13 |
$4,965,343.03 |
$5,213,610.18 |
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Total Current Assets |
$55,893,000.00 |
58,687,650.00 |
61,622,032.50 |
$64,703,134.13 |
$67,938,290.83 |
71,335,205.37 |
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Fixed Assets |
$124,211,000.00 |
$130,421,550.00 |
$136,942,627.5 |
$143,789,758.88 |
$150,979,246.82 |
$158,528,209.1 |
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Total Assets |
$180,104,000.00 |
$189,109,200.0 |
$198,564,660.0 |
$208,492,893.00 |
$218,917,537.65 |
$229,863,414.5 |
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Accounts payable |
$9,632,000.00 |
$10,113,600.00 |
10,619,280.00 |
11,150,244.00 |
11,707,756.20 |
12,293,144.01 |
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Short-term notes |
$28,039,000.00 |
$29,440,950.00 |
30,912,997.50 |
$32,458,647.38 |
34,081,579.74 |
35,785,658.73 |
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Accrued & other liabilities |
$12,650,000.00 |
$13,282,500.00 |
13,946,625.00 |
$14,643,956.25 |
15,376,154.06 |
16,144,961.77 |
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Total Current Liabilities |
$50,321,000.00 |
$52,837,050.00 |
55,478,902.50 |
$ 58,252,847.63 |
$ 61,165,490.01 |
64,223,764.51 |
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Long term Debt |
$30,651,000.00 |
$32,183,550.00 |
33,792,727.50 |
$35,482,363.88 |
$37,256,482.07 |
$39,119,306.17 |
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Other Long term Liabilities |
$17,939,000.00 |
$18,835,950.00 |
19,777,747.50 |
20,766,634.88 |
21,804,966.62 |
22,895,214.95 |
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Total Liabilities |
$98,911,000.00 |
$103,856,550.00 |
109,049,377.50 |
$114,501,846.38 |
120,226,938.69 |
126,238,285.63 |
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Shareholder's Equity |
$81,193,000.00 |
$85,252,650.00 |
89,515,282.50 |
$ 93,991,046.63 |
98,690,598.96 |
103,625,128.90 |
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Total Liabilities & Shareholder Equity |
$180,104,000.00 |
$189,109,200.0 |
198,564,660.00 |
208,492,893.00 |
218,917,537.65 |
229,863,414.53 |