Financial Statement Analysis for Johnson & Johnson
For this project you will be completing a financial statement analysis for Johnson & Johnson. All the materials that you will need in order to be able to conduct this analysis will be available to you on Brightspace. This project is due by 11:59 PM EST on April 1, 2022.
You will be submitting a 4-5 page written paper (in PDF format), along with a spreadsheet (using the provided template) with:
1. The following financial statements for the firm (each in its own tab of the spreadsheet)
a. 2021 Balance Sheet (this will include data from the 2019 Balance Sheet that you manually add)
b. 2021 Income Statement
c. 2021 Statement of Cash Flows
2. Ratio Analysis (in a separate tab on the spreadsheet)
Please complete all calculations in your spreadsheet. You MUST use cell references. Points will be deducted for students not using Excel for calculations. Clearly label all worksheets in your spreadsheet so I can easily follow your work. Your written paper should include a brief introduction and conclusion and answer the questions below, using the calculations in your spreadsheet for support. Clearly state which items in your spreadsheet you are referring to in your paper (use the column letter and row number).
Your written paper should include responses to the questions below. You should discuss and explain your financial analysis of Johnson & Johnson in your paper. Any assumptions must be clearly discussed in your paper.
(more information is in the FIN 311 Take Home Project Spring 2022.pdf)
Financial Statement Analysis
Author
Affiliation
Course
Instructor
Due Date
Johnson & Johnson Financial Analysis
Johnson & Johnson is an American corporation based in New Jersey that was founded in 1986. Medical devices, drugs, pharmaceuticals, and consumer goods are all developed and sold by the company. The development of the coronavirus vaccine is Johnson & Johnson's most recent and significant achievement. The business is extremely valuable and has excellent credit ratings. Joaquin Duato, who also serves as Chairman, is the company's current Chief Executive Officer. First aid kits, bandages, Johnson's Baby products, Janssen Pharmaceuticals, and other major products are associated with the company. The company appears to be doing well financially, as evidenced by the financial statements, which show consistent increases in sales and profits. The company's balance sheet also indicates that it is in good financial shape. Our investigation will focus on the company's financial statements, as well as its performance and forecasts for 2022. We recommend the following external financing options as part of our research: lease or hire purchase options, debentures, or preferred stocks. Because the company has a consistent income and a healthy balance sheet, it is able to pursue debt financing.
Income statement
LINK Excel.Sheet.12 "D:\\top writers\\March\\F00145028.xlsx" "Income Statement !R5C1:R34C8" \a \f 4 \h \* MERGEFORMAT
Common Size Income Statement
Period Ending:
2021
2020
2019
2018
2021
2020
2019
Revenue
93,775
82,584
82,059
81,581
1
1
1
Cost of Revenue, Total
29,855
28,327
27,456
26,986
31.84%
34.30%
33.25%
Gross Profit
63,920
54,257
54,603
54,595
68.16%
65.70%
66.12%
Total Operating Expenses
70,999
66,087
64,731
63,582
75.71%
80.02%
78.38%
Selling/General/Admin. Expenses, Total
23,559
21,084
22,178
22,540
25.12%
25.53%
26.86%
Research & Development
14,714
12,159
11,355
10,775
15.69%
14.72%
13.75%
In process R &D
900
181
890
0.96%
0.22%
1.08%
Interest Income
(53)
(111)
(357)
394
-0.06%
-0.13%
-0.43%
Interest Expense
183
201
318
394
0.20%
0.24%
0.39%
Unusual Expense (Income)
5,141
5,428
1,456
1,826
5.48%
6.57%
1.76%
Restructuring
252
247
266
1,061
0.27%
0.30%
0.32%
Operating Income
22,776
16,497
17,328
17,999
24.29%
19....
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