Johnson & Johnson Company

Abstract

In this research paper we have discuss the financial position of Johnson & Johnson Company. We have cover the history, major business line and key financial indicators which show the clear picture of the Johnson & Johnson Company financial position in the market and on bases of that, we have recommended certain strategies through which company can become more stringer brand in the market. Moreover, the environmental analysis is also done to see and analyze the market situation and changing consumer behavior.

Table of Content

Abstractii

Introduction1

Discussion1

History of the Johnson & Johnson Company1

Three main areas of activity:2

Major Products and Services2

Key competitors of Johnson & Johnson3

Financial Analysis of Johnson & Johnson3

Financial Ratios3

Liquidity Ratios4

Profitability Ratios5

Debt Management7

Efficiency Ratios8

Recommendation9

Environmental Scan for the Future10

Conclusion12

References13

Johnson & Johnson Company

Introduction

Financial analysis is the study of key parameters, factors and multiples, giving an objective assessment of the financial condition of the company, as well as analysis of the company stock. Financial analysis is part of the economic analysis. In this paper we will discuss the financial analysis of Johnson & Johnson Company along with the trends and Environmental scan for the future.

Discussion

History of the Johnson & Johnson Company

The founders of Johnson & Johnson (J&J) were three brother named Robert Wood Johnson, Edward Mead Johnson and James Wood Johnson. This company developed an improved sterilizing technique for catgut sutures. Johnson & Johnson is an American based company founded in 1886 in New Brunswick, New Jersey. It is one of the world's largest manufacturers of products pharmaceuticals, medical supplies, hygiene products, health and cosmetics and also provides related services to consumers and health professionals. The capital stock of this company is a component of the Dow Jones and this company is listed in the Fortune 500. Johnson & Johnson is known for its corporate ethics and its ranking at the top of stable Survey.

National Corporate Reputation in the U.S. conducted by the firm Harris Interactive. The headquarters of the company is based in New Brunswick, in the State of New Jersey. The company, which has over 250 subsidiaries, operates in over 57 countries. Its products are marketed in over 175 countries. Johnson & Johnson owns many famous brands of medicines and first aid supplies. Among its consumer products well known, there are bandaids and bandages Band-Aid, medication Tylenol, baby products Johnson's Baby, the skin care and cosmetics Neutrogena and Roc, gels, facial cleansers Clean & Clear contact lenses (www.jnj.com).

Three main areas of activity:

The following are three main activities of Johnson & Johnson:

Consumer Health Care (consumer products);

Medical Devices & Diagnostics (products for hospitals: medical products and equipment);

Pharmaceuticals (Pharmaceuticals).

Total numbers of employees in Johnson & Johnson are approximately 114,000 as of December 31, 2010. The revenue of the company reported in 2010 is $61,587 million a decrease of 0.5% over FY2009. The company's operating profit in 2010 was $16,527 million which is an increase of 6% over FY2009. The J&J net profit in 2010 was $13,334 million which is an increase of 8.7% over FY2009 (www.investor.jnj.com).

Major Products and Services

The following are the ...