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JNJ (Johnson & Johnson) Piotroski F-Score : 6 (As of Mar. 15, 2025)


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What is Johnson & Johnson Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Johnson & Johnson has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Johnson & Johnson's Piotroski F-Score or its related term are showing as below:

JNJ' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 7   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Johnson & Johnson was 8. The lowest was 4. And the median was 7.


Johnson & Johnson Piotroski F-Score Historical Data

The historical data trend for Johnson & Johnson's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Johnson & Johnson Piotroski F-Score Chart

Johnson & Johnson Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.00 7.00 6.00 7.00 6.00

Johnson & Johnson Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 7.00 5.00 5.00 6.00

Competitive Comparison of Johnson & Johnson's Piotroski F-Score

For the Drug Manufacturers - General subindustry, Johnson & Johnson's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Johnson & Johnson's Piotroski F-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Johnson & Johnson's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec24) TTM:Last Year (Dec23) TTM:
Net Income was 3255 + 4686 + 2694 + 3431 = $14,066 Mil.
Cash Flow from Operations was 3657 + 5633 + 7993 + 6983 = $24,266 Mil.
Revenue was 21383 + 22447 + 22471 + 22520 = $88,821 Mil.
Gross Profit was 14872 + 15578 + 15508 + 15392 = $61,350 Mil.
Average Total Assets from the begining of this year (Dec23)
to the end of this year (Dec24) was
(167558 + 171966 + 181088 + 178287 + 180104) / 5 = $175800.6 Mil.
Total Assets at the begining of this year (Dec23) was $167,558 Mil.
Long-Term Debt & Capital Lease Obligation was $30,651 Mil.
Total Current Assets was $55,893 Mil.
Total Current Liabilities was $50,321 Mil.
Net Income was -68 + 5144 + 26028 + 4049 = $35,153 Mil.

Revenue was 20894 + 21519 + 21351 + 21395 = $85,159 Mil.
Gross Profit was 14207 + 15057 + 14745 + 14597 = $58,606 Mil.
Average Total Assets from the begining of last year (Dec22)
to the end of last year (Dec23) was
(187378 + 195969 + 191686 + 166061 + 167558) / 5 = $181730.4 Mil.
Total Assets at the begining of last year (Dec22) was $187,378 Mil.
Long-Term Debt & Capital Lease Obligation was $25,881 Mil.
Total Current Assets was $53,495 Mil.
Total Current Liabilities was $46,282 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Johnson & Johnson's current Net Income (TTM) was 14,066. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Johnson & Johnson's current Cash Flow from Operations (TTM) was 24,266. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec23)
=14066/167558
=0.08394705

ROA (Last Year)=Net Income/Total Assets (Dec22)
=35153/187378
=0.18760473

Johnson & Johnson's return on assets of this year was 0.08394705. Johnson & Johnson's return on assets of last year was 0.18760473. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Johnson & Johnson's current Net Income (TTM) was 14,066. Johnson & Johnson's current Cash Flow from Operations (TTM) was 24,266. ==> 24,266 > 14,066 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec23 to Dec24
=30651/175800.6
=0.17435094

Gearing (Last Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=25881/181730.4
=0.14241426

Johnson & Johnson's gearing of this year was 0.17435094. Johnson & Johnson's gearing of last year was 0.14241426. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec24)=Total Current Assets/Total Current Liabilities
=55893/50321
=1.11072912

Current Ratio (Last Year: Dec23)=Total Current Assets/Total Current Liabilities
=53495/46282
=1.15584893

Johnson & Johnson's current ratio of this year was 1.11072912. Johnson & Johnson's current ratio of last year was 1.15584893. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Johnson & Johnson's number of shares in issue this year was 2429.1. Johnson & Johnson's number of shares in issue last year was 2431.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=61350/88821
=0.69071503

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=58606/85159
=0.68819502

Johnson & Johnson's gross margin of this year was 0.69071503. Johnson & Johnson's gross margin of last year was 0.68819502. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec23)
=88821/167558
=0.53009107

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec22)
=85159/187378
=0.45447705

Johnson & Johnson's asset turnover of this year was 0.53009107. Johnson & Johnson's asset turnover of last year was 0.45447705. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+1+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Johnson & Johnson has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Johnson & Johnson  (NYSE:JNJ) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Johnson & Johnson Piotroski F-Score Related Terms

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Johnson & Johnson Business Description

Address
One Johnson and Johnson Plaza, New Brunswick, NJ, USA, 08933
Johnson & Johnson is the world's largest and most diverse healthcare firm. It has two divisions: pharmaceutical and medical devices. These now represent all of the company's sales following the divestment of the consumer business, Kenvue, in 2023. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. Geographically, just over half of total revenue is generated in the United States.
Executives
Timothy Schmid officer: EVP, WW Chair, MedTech ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Joseph J Wolk officer: Exec VP, CFO JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Mark A Weinberger director METLIFE, INC., 200 PARK AVENUE, NEW YORK NY 10166
Robert J Decker officer: Controller, CAO ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Vanessa Broadhurst officer: EVP, Global Corp Aff. ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Jennifer L Taubert officer: EVP, WW Chair, Pharmaceuticals JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
William Hait officer: See Remarks ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Peter Fasolo officer: VP, Worldwide Human Resources JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Kathryn E Wengel officer: EVP, Chief GSC Officer JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
John C Reed officer: EVP, Pharmaceuticals R&D ONE JOHNSON & JOHNSON PLAZA, WHQ 2134, NEW BRUNSWICK NJ 08933
James D. Swanson officer: EVP, Chief Information Officer ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Paula A Johnson director 22 CHERRY HILL DRIVE, DANVERS MA 01923
Ashley Mcevoy officer: EVP, WW Chair, Medical Devices JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Thibaut Mongon officer: Exec VP, WW Chair, Consumer JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Elizabeth Forminard officer: Executive VP, General Counsel ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933