Scenario 40 Financial Statement Analysis - Johnson & Johnson

Johnson & Johnson has reported the following financial data for the fiscal year ended December 31, 2023:

• Total Assets: $165,730 million
• Total Liabilities: $63,810 million
• Net Income: $19,850 million
• Total Revenue: $88,730 million
• Total Expenses: $68,880 million
• Average Shareholders' Equity: $101,920 million

Calculate the following financial ratios for Johnson & Johnson:

a) Return on Assets (ROA) b) Return on Equity (ROE) c) Debt-to-Equity Ratio d) Gross Profit Margin e) Net Profit Margin

Interpret each ratio and discuss the financial performance of Johnson & Johnson based on these ratios.