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GuruFocus has detected 5 Warning Signs with Johnson & Johnson $JNJ.
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Johnson & Johnson (NYSE:JNJ)
Net Margin %
21.06% (As of Dec. 2016)

Net margin is calculated as net income divided by its revenue. Johnson & Johnson's net income for the three months ended in Dec. 2016 was $3,814 Mil. Johnson & Johnson's revenue for the three months ended in Dec. 2016 was $18,106 Mil. Therefore, Johnson & Johnson's net margin for the quarter that ended in Dec. 2016 was 21.06%.

JNJ' s Net Margin % Range Over the Past 10 Years
Min: 14.87   Max: 23.01
Current: 22.78

14.87
23.01
JNJ's Net Margin % is ranked higher than
90% of the 687 Companies
in the Global Drug Manufacturers - Major industry.

( Industry Median: 5.80 vs. JNJ: 22.78 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Johnson & Johnson's Net Margin for the fiscal year that ended in Dec. 2016 is calculated as

Net Margin=Net Income (A: Dec. 2016 )/Revenue (A: Dec. 2016 )
=16540/71890
=23.01 %

Johnson & Johnson's Net Margin for the quarter that ended in Dec. 2016 is calculated as

Net Margin=Net Income (Q: Dec. 2016 )/Revenue (Q: Dec. 2016 )
=3814/18106
=21.06 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Johnson & Johnson Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
netmargin 17.3120.3119.8221.6514.8716.1419.4021.9621.9923.01

Johnson & Johnson Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
netmargin 25.7213.8124.8625.3919.6418.0524.5521.6323.9721.06
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