I need to do a homework on accounting financial statements, a section that needs to be introduced, and I'll give you a website to find the data.
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FinalProjectSample.pptxIntroduction
Financial Statement
Evaluation of the Performance
Evaluation of the Liquidity
Non-Financial Information
Outline
Introduction
Johnson & Johnson, through its operation companies, is the world’s most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices and diagnostics market. The more than 200 Johnson & Johnson operating companies employ approximately 115,000 men and women in 57 countries and sell products throughout the world.
Consumer
Major franchises-skin and hair care, sanitary protection, wound care, oral care, baby care and nonprescription drugs
ex) JOHNSON’S BABY, BAND-AID, NEUTROGENA,
CLEAN & CLEAR, TYLENOL, etc
Business segments
2. Medical devices and Diagnostics
Johnson & Johnson’s operating companies’ product lines include surgical implants, instruments, needles and sutures: blood glucose monitoring system, wound closure device: endoscopic instruments: orthopaedic products for joint repair and replacement and for correcting spinal deformities: contact lenses:
clinical chemistry systems: medical devices, including cardiovascular monitoring: shunts: coronary and biliary stents: diagnostics used in physicians’ offices and laboratories for identification of diseases such as hepatitis C.
ex)ACUVUE, PROLENE, CYPHER, etc
3. Pharmaceutical
Johnson & Johnson’s operating companies develop products for family planning: psychiatry, mental illness and diseases of the nervous system: gastroenterology: oncology: immunotherapy: cardiovascular disease: dermatology: pain management: allergy: antifungals: anti-infectives: anti-histamines and antiparasitic drugs: and biotechnology-derived products.
ex)NIZORAL, SPORANOX, RISPERDAL(Janssen)
Introduction
Financial Statement
Evaluation of the Performance
Evaluation of the Liquidity
Non-Financial Information
Outline
<Income Statement>
Financial Statement
<Balance Sheet>
Financial Statement
<Cash Flow>
Financial Statement
Introduction
Financial Statement
Evaluation of the Performance
Evaluation of the Liquidity
Non-Financial Information
Outline
Common Size
2004
2003
25,997
27,320
25,268
22,995
$53,317
$48,263
(Dollars in Millions )
Total
2003
2004
Total Long-Term Assets Total Current Assets
Series1
Total Current assets Total Long-Term assets 27320.000000 25997.000000
Series1
Total Current assets Total Long-Term assets 22995.000000 25268.000000
Vertical Analysis
| (Dollars in Millions ) | 2004 | Percent | 2003 | Percent |
| Sales to customers | 47,348 | 100.0% | 41,862 | 100.0% |
| Cost of products sold | 13,422 | 28.3% | 12,176 | 29.1% |
| Gross profit | 33,926 | 71.7% | 29,686 | 70.9% |
| Selling, marketing and administrative expenses | 15,860 | 33.5% | 14,131 | 33.8% |
| Research expense | 5,203 | 11.0% | 4,684 | 11.2% |
| Purchased in-process research and development | 18 | 0.0% | 918 | 2.2% |
| Interest income | (195) | -0.4% | (177) | -0.4% |
| Interest expense, net of portion capitalized | 187 | 0.4% | 207 | 0.5% |
| Other (income) expenses, net | 15 | 0.0% | (385) | -0.9% |
| 21,088 | 44.5% | 19,378 | 46.3% | |
| Earnings before provision for taxes on income | 12,838 | 27.1% | 10,308 | 24.6% |
| Provision for taxes on income | 4,329 | 9.1% | 3,111 | 7.4% |
| Net earnings | 8,509 | 18.0% | 7,197 | 17.2% |
| Basic net earnings per share | 2.87 | 2.42 | ||
| Diluted net earnings per share | 2.84 | 2.40 |
Horizontal Analysis
| (Dollars in Millions ) | 2004 | 2003 | Percent |
| Sales to customers | 47,348 | 41,862 | 13% |
| Cost of products sold | 13,422 | 12,176 | 10% |
| Gross profit | 33,926 | 29,686 | 14% |
| Selling, marketing and administrative expenses | 15,860 | 14,131 | 12% |
| Research expense | 5,203 | 4,684 | 11% |
| Purchased in-process research and development | 18 | 918 | -98% |
| Interest income | (195) | (177) | -10% |
| Interest expense, net of portion capitalized | 187 | 207 | -10% |
| Other (income) expenses, net | 15 | (385) | 104% |
| 21,088 | 19,378 | 9% | |
| Earnings before provision for taxes on income | 12,838 | 10,308 | 25% |
| Provision for taxes on income | 4,329 | 3,111 | 39% |
| Net earnings | 8,509 | 7,197 | 18% |
| Basic net earnings per share | 2.87 | 2.42 | 19% |
| Diluted net earnings per share | 2.84 | 2.40 | 18% |
8,509,000
13,422,000
21,088,000
4,329,000
5,813,400
4,959,800
10,004,300
2,161,100
11,332,000
7,541,000
30,978,000
2,665,000
Bench Marking
Income from
Continuing Operations
Cost of Goods Sold
Operating and
Other Expenses
Income Taxes
(Dollars in Millions )
Income Taxes
JNJ MRK PFE 9.000000 9.000000 5.000000 Operating and Other Expenses
JNJ MRK PFE 45.000000 44.000000 59.000000 Cost of Goods Sold
JNJ MRK PFE 28.000000 22.000000 14.000000 Income Taxes
JNJ MRK PFE 9.000000 9.000000 5.000000
Measuring Profitability
Rate of Return
on Net sales
Rate of Return
on Total asset
Rate of Return
on Common
Stockholders' Equity
Earnings per Share
of Common Stock
| $8,509 |
| $47,348 |
| $(8,509+187) |
| $(53,317+48,263)/2 |
| $(8,509-0) |
| $(31,813+26,869)/2 |
| $(8,509+0) |
| 2967973000 |
| $11,361 |
| $52,516 |
| $(11,361+359) |
| $(123,684+116,775)/2 |
| $(11,361-0) |
| $(68,278+65,377)/2 |
| $(11,361-0) |
| 753100000 |
| $5,813.4 |
| $22,938.6 |
| $(5,813.4+293.7) |
| $(42,572.8+40,587.5)/2 |
| $(5,813.4-0) |
| $(43,480.0+41,193.9)/2 |
| $(5,813.4-0) |
| 2219000000 |
(Dollars in Millions )
Rate of Return
on Net sales
Rate of Return
on Total asset
Rate of Return
on Common
Stockholders' Equity
Earnings per Share
of Common Stock
0.1797
0.1712
0.2900
2.8700
0.2163
0.0975
0.1700
1.5086
0.2534
0.1469
0.1373
2.6198
(Dollars in Millions )
Measuring Profitability
Introduction
Financial Statement
Evaluation of the Performance
Evaluation of the Liquidity
Non-Financial Information
Outline
Liquidity
Quick Ratio
Current Ratio
Inventory
Turnover
A.R
Turnover
Debt Ratio
| $27,320 |
| $13,927 |
| $9,203 + $6,831 |
| $13,927 |
| $13,422 |
| ($3,744+$3,588)/2 |
| $8,509 |
| ($6,831+$6,574)/2 |
| $21,504 |
| $53,317 |
| $39,694 |
| $26,458 |
| $1,808+$18,085+$9,367 |
| $26,458 |
| $7,541 |
| ($6,660+$5,699)/2 |
| $11,361 |
| ($6,397+$8,636)/2 |
| $55,406 |
| $123,648 |
| $13,475.2 |
| $11,744.1 |
| $2,878.8+$4,211.1+$3,627.2 |
| $11,744.1 |
| $4,959.8 |
| ($1,898.7+$2,554.7)/2 |
| $5,813.4 |
| ($3,627.7+$4,023.6)/2 |
| $25,284.6 |
| $42,572.8 |
(Dollars in Millions )
Liquidity
Quick Ratio
Current Ratio
Inventory
Turnover
A.R
Turnover
Debt Ratio
1.96
1.15
3.66
1.27
0.40
1.50
1.11
1.22
1.26
0.45
1.15
0.91
2.23
1.52
0.59
>
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(Dollars in Millions )
Introduction
Financial Statement
Evaluation of the Performance
Evaluation of the Liquidity
Non-Financial Information
Outline
Responsibility
Non-Financial Information
Head office
Global Affiliates
Segment Structures
The Operating Units
Decentralized
Organization Structure
Credo
Customers
Employees
Stockholders
Communities
Non-Financial Information
Patent
Positive Reputation
Reference : The Wall Street Journal - January 2002
Baby lotion UV protection (SPF 17)
No.1 company In
applying for a patent
in Korea
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