Johnson & Johnson (FRA:JNJ) Gross Margin %

: 68.23% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Johnson & Johnson's Gross Profit for the three months ended in Dec. 2023 was €13,385 Mil. Johnson & Johnson's Revenue for the three months ended in Dec. 2023 was €19,619 Mil. Therefore, Johnson & Johnson's Gross Margin % for the quarter that ended in Dec. 2023 was 68.23%.

The historical rank and industry rank for Johnson & Johnson's Gross Margin % or its related term are showing as below:

FRA:JNJ' s Gross Margin % Range Over the Past 10 Years
Min: 65.58 Med: 69.04 Max: 70.28
Current: 68.63

During the past 13 years, the highest Gross Margin % of Johnson & Johnson was 70.28%. The lowest was 65.58%. And the median was 69.04%.

FRA:JNJ's Gross Margin % is ranked better than
82.54% of 991 companies
in the Drug Manufacturers industry
Industry Median: 46.77 vs FRA:JNJ: 68.63

Johnson & Johnson had a gross margin of 68.23% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Johnson & Johnson was 1.00% per year.

Johnson & Johnson Gross Margin % Historical Data

The historical data trend for Johnson & Johnson's Gross Margin % 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.

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Johnson & Johnson Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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66.42

65.58

70.28

69.25

68.82

Johnson & Johnson Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Gross Margin %	Get a 7-Day Free Trial															66.08	67.83	69.06	68.23	69.55

Competitive Comparison

For the Drug Manufacturers - General subindustry, Johnson & Johnson's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution

For the Drug Manufacturers industry and Healthcare sector, Johnson & Johnson's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Johnson & Johnson's Gross Margin % falls into.

Johnson & Johnson Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Johnson & Johnson's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	53741.7	/	78090.803
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(78090.803 - 24349.101)	/	78090.803
	=	68.82 %

Johnson & Johnson's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	13385.4	/	19619.215
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(19619.215 - 6233.766)	/	19619.215
	=	68.23 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Johnson & Johnson (FRA:JNJ) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Johnson & Johnson had a gross margin of 68.23% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Johnson & Johnson Gross Margin % Related Terms

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Johnson & Johnson (FRA:JNJ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Johnson & Johnson (FRA:JNJ) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

JNJ:USA JNJ:Peru JNJ:Mexico JNJ_KZ:Kazakhstan 1JNJ:Italy JNJd:UK 0R34:UK JNJ:Germany JNJ:Canada JNJB34:Brazil JNJ:Austria JNJ:Argentina

Address

One Johnson and Johnson Plaza, New Brunswick, NJ, USA, 08933

Website

https://www.jnj.com

Johnson & Johnson is the world's largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women's health. The consumer group is being divested in 2023 under the new name Kenvue. Geographically, just over half of total revenue is generated in the United States.