Johnson and Johnson Company
Transcript: FINANCIAL ANALYSIS OF JOHNSON AND JOHNSON COMPANY DPB5043 BUSINESS FINANCE LECTURER'S NAME : PUAN ZAKIAH BINTI SHAFIE DPB5043 BUSINESS FINANCE DKB4 FINANCIAL ANALYSIS OF GROUP MEMBER'S NAME : NURNABILA IZZATI BINTI MOHD AZMAN (01DKB15F2024) NAZA NAQUYAH BINTI ABD WAHID (01DKB15F2009) SAKTIRA A/P V.RAVICHANDRAN (01DKB15F2018) MIRASHINI A/P DEVARAJU (01DKB15F2017) RAFIQAH BINTI ABDUL HAMEED (01DKB15F2033) GROUP MEMBER'S NAME : BACKGROUND OF JOHNSON AND JOHNSON COMPANY Johnson & Johnson is an American multinational medical devices, pharmaceutical and consumer packaged goods manufacturing company founded in 1886. Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500. Johnson & Johnson is headquartered in New Brunswick, New Jersey, the consumer division being located in Skillman, New Jersey. The corporation includes some 250 subsidiary companies with operations in 60 countries and products sold in over 175 countries.Johnson and Johnson was founded over 130 years ago. BACKGROUND OF JOHNSON AND JOHNSON COMPANY Categories and Segements of johnson & johnson American brand of baby cosmetics and skin care products owned by Johnson & Johnson. The brand dates back to 1893 when Johnson's Baby Powder was introduced. Product line consists of baby powder, shampoos, body lotions, massage oil, shower gels and baby wipes. The brand has reputation for making baby products that are "exceptionally pure and safe" since at least the 1980s. Since then, we have developed new ideas and product which have transformed human health and well-being. The success of their medical products, including sterile suture and dressing material, allowed the young company to grow rapidly. Product categories in Johnson and Johnson company are : New born Babies Toddlers Adults Johnson have 3 major segments of business : Pharmaceuticals Medical devices and diagnostics consumer products Categories and Segements of johnson & johnson ANNUAL REPORT YEAR OF 2013 & 2014 ANNUAL REPORT YEAR OF 2013 & 2014 CALCULATION CALCULATION 2013 Current ratio = Current Assets Current Liabilities = RM 56,407 RM 25,675 = 2.1970 CURRENT RATIO CURRENT RATIO 2014 Current ratio = Current Assets Current Liabilities = RM 59,311 RM 25, 085 = 2.3644 The current ratio for year 2014 is higher than year 2013 The current ratio for year 2014 is higher than year 2013 2013 Acid-test Ratio = Current - Inventory - Prepaid Assets Expenses Current Liabilities = RM 56,407 - RM 7,878 - RM 4,003 RM 25,675 = 1.7342 ACID-TEST RATIO ACID-TEST RATIO 2014 Acid-test Ratio = RM59,311 - RM8,184 - RM3,486 RM 25,085 = 1.8991 The quick ratio less than 1 not able to pay it's immediate obligation if ratio, current ratio is lower than current assets highly dependents on inventory. For this, 2013 is lower than 2014. So, 2014 is better. The quick ratio less than 1 not able to pay it's immedia... 2013 Inventory turnover ratio = Cost of goods sold Closing inventory = RM22,342 RM7,878 = 2.8360 INVENTORY TURNOVER RATIO INVENTORY TURNOVER RATIO 2014 Inventory turnover ratio = Cost of goods sold Closing inventory = RM22,746 RM8,184 = 2.7793 The higher the ratio, the faster the inventory is being, so in this inventory turnover ratio for 2013 is higher than year 2014 The higher the ratio, the faster the inventory is being, so in this invento... 2013 Average collection period = Account Receivable (Annual Sales / 360 days) = RM11,713 (RM71,312 / 360 days) = 59 days AVERAGE COLLECTION PERIOD AVERAGE COLLECTION PERIOD 2014 Average collection period = Account Receivable (Annual Sales / 360 days) = RM10,985 (RM74,331 / 360 days) = 53 days The shorter the average collection period, the faster the debtors are paying their account and therefore, the more efficient the company is in debtor collection this year 2014 has the shorter period rather than year 2013 The shorter the average collection period, the faster t... 2013 Non current assets turnover = Sales Net Non current assets = RM71,312 RM76,276 = 0.9349 NON CURRENT ASSETS TURNOVER RATIO NON CURRENT ASSETS TURNOVER RATIO 2014 Non current assets turnover = Sales Net Non current assets = RM 74,331 RM 71,808 = 1.0351 The turnover ratio in 2014 is higher than the year 2013 The turnover ratio in 2014 is higher than the ye... 2013 Total assets turnover = Sales Total assets = RM71,312 RM132,683 = 0.5375 TOTAL ASSETS TURNOVER TOTAL ASSETS TURNOVER 2014 Total assets turnover = Sales Total assets = RM71,312 RM131,119 = 0.5668 In 2014, the total assets turnover is higher than 2013. So, 2014 is better because it generate high volume of sales. In 2014, the total assets turnover is higher than 2013. So, 2014 is bett... 2013 Gross Profit Margin = Gross Profit Sales = RM 48,970 RM 71,312 = 0.6867% GROSS PROFIT MARGIN GROSS PROFIT MARGIN 2014 Gross Profit Margin = Gross Profit Sales = RM 51,585 RM 74,331 = 0.6940% In 2014, the Gross Profit Margin is higher than 2013, the higher the rat... In 2014, the Gross Profit Margin is higher than