Members
Login
Sign Up!!!
Categories
Arts
Business
Custom Research
Economics
Film
Foreign
Government and Law
History
Literature
Medical
Miscellaneous
People
Personal Essays
Philosophy
Psychology
Science and Technology

Support
FAQ
Customer Service
Site Search

     Home Customer Service Acceptable Use Policy Site Search

     Enter Search Topic:
 

Already a member? Go here to log in and view the entire paper!

Join Now!
by: Credit Card
Join Now!
by: Online Check
Membership Benefits

Johnson & Johnson's Financial Performance

This is an excerpt from the paper...

Johnson and Johnson is the largest and most comprehensive health care company in the world, offering a broad line of consumer products, prescription and over-the-counter pharmaceuticals, and various other medical and dental items. Johnson and Johnson brands include Tylenol, Band-Aid and Reach. The company has a large international business (contributing 49 percent of sales in 1993) and is divided into three major operating segments: consumer, professional and pharmaceutical. This research examines the company's financial performance for the period 1990 - 1992 through the use of ratio analysis. A complete table of the ratios used in this document is provided on page six.

Liquidity ratios are used to determine the ability of a company to meet its current (short-term) obligations. Common measurements include the current ratio, the acid test ratio and the inventory to net working capital ratio. The current ratio (current assets divided by current liabilities) measures the extent to which the claims of short-term creditors are covered by assets that are expected to be converted to cash in a period roughly corresponding to the maturity of the liabilities. The acid test (also called the quick ratio) is the same as the current ratio, with the exception that inventory is deducted from the current assets. The acid test ratio measure the firm's ability to pay short-term creditors without relying on the sale of its inventory. The inventory to net working capital ratio measu

. . .
's performance in this regard needs to be compared to the industry as a whole, which reduced its indebtedness over the same period. Where total debt to equity is 130 percent for Johnson & Johnson in 1992, it was merely 62 percent for the industry. As with the liquidity measures, this indicates that the company may be losing its ability to compete as increased amounts of its resources go toward servicing its debt.  Profitability ratios, gross operating margin, sales margin and return on assets, indicate how the company is able to translate its sales into profit for its owners. The gross margin measures the total profit available to cover internal operating expenses and yield a profit. High gross margins indicate that the company is able to minimize its cost of goods sold or maximize its revenues. The sales margin shows the after-tax profit on revenues. A low sales margin suggests that the company's costs may be excessive, or that its pricing strategy should be re-evaluated. Return on assets measures the company's return against its available assets. Net profit margin is also considered since it measures the ability of the company to be profitable after all expenses are deducted. Gross operating margin has remained remar
. . .

Some common words found in the essay are:
Johnson Johnson, Band-Aid Reach, Assets Turnover, Industry Averages,  , Flow Share, Cash Flow,   , Debt Equity, Turnover Days, Profit Margin, Net Worth, n/a , johnson johnson, debt equity,  return, current ratio, dun bradstreet information, ratios , indicates company, gross margin, 1990 1992, ratios  , bradstreet information services, n/a  operating,
Approximate Word count = 1267
Approximate Pages = 5 (250 words per page)

More Essays on Johnson & Johnson Financial Performance

Johnson ampamp Johnson Case Analysis 1255 words
NOVARTIS AG 1104 words
Organizational Assessment of Novartis AG 1124 words
Interview with a Health Care Provider 1442 words
Management Accounting 2779 words
PR ampamp the Tylenol Tampering Incidents TAMPERING INCID 1488 words
IMPORTANCE OF COMPANY PLANNING 1508 words
Product Liability Risks 2886 words
Integrating ASD Into Financial Accounting 7555 words
Kimberly Clark Corporation 2242 words
Membership Benefits
Click here to Join Now!
by: Credit Card
Click here to Join Now!
by: Online Check






to Over 32,000 Professionally Written Papers!!!
 


All papers are for research and reference purposes only!
Copyright © 2009 LotsOfEssays.com
All rights reserved. Webmasters make $$$ NEW