The business behind the dividend
| Measure | JNJ | Median | Formula |
|---|---|---|---|
| Return on equity | 32.9% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 26.5% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $29.48bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $19.70bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 34.6% | 15.0% | Operating income ÷ revenue |
| Net margin | 28.5% | 10.2% | Net income ÷ revenue |
| Debt to equity | 0.51x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 33.55x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.03x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 26.33x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 0.92x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2023 | 2022 | 2021 | 2019 | 2018 | 2017 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 32.9% | 19.7% | 51.1% | 23.4% | 28.2% | 23.3% | 25.4% | 25.6% | 2.2% | 23.5% | 23.5% |
| Return on capital employed | 26.5% | 16.1% | 15.7% | 18.4% | 18.1% | 16.9% | 19.9% | — | — | — | 18.1% |
| Operating margin | 34.6% | 18.8% | 17.7% | 24.2% | 24.4% | 20.0% | 21.1% | — | — | — | 21.1% |
| Net margin | 28.5% | 15.8% | 41.3% | 22.4% | 26.5% | 17.8% | 18.4% | 18.8% | 1.7% | 23.0% | 18.8% |
| Debt to equity | 0.51x | 0.45x | 0.40x | 0.37x | 0.43x | 0.54x | 0.47x | 0.51x | 0.53x | 0.34x | 0.45x |
| Current ratio | 1.03x | 1.11x | 1.16x | 0.99x | 1.35x | 1.21x | 1.26x | 1.47x | 1.41x | 2.47x | 1.21x |
| Cash conversion | 0.92x | 1.73x | 0.65x | 1.18x | 1.12x | 1.60x | 1.55x | 1.45x | 16.20x | 1.13x | 1.18x |
How it compares in health care
Among the 38 health care companies here measured on free cash flow, Johnson & Johnson pays out less than 9 of them. The median for that group is 39.3%, against this company’s 62.9%.
Closest on free cash flow
- Eli Lilly (LLY) 60.0%
- Amgen (AMGN) 63.3%
- AbbVie (ABBV) 65.4%
- Merck (MRK) 66.1%
Same sector and same denominator, so the figures are comparable. All 44 in health care →