Johnson Stock Story


USD 169.02  2.25  1.35%   

Johnson Johnson is scheduled to announce its earnings tomorrow. Johnson Johnson Calculated Tax Rate is increasing as compared to previous years. The last year's value of Calculated Tax Rate was reported at 8.33. The current PPandE Turnover is estimated to increase to 5.08, while Average Assets are projected to decrease to under 173.8 B. While many traders are getting carried away by overanalyzing healthcare space, it is reasonable to examine Johnson Johnson as an investment alternative.
Published over a month ago
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Thinking to sell Johnson (NYSE:JNJ) based on its current debt commitments?

The company has 33.15 B in debt with debt to equity (D/E) ratio of 0.44, which is OK given its current industry classification.
Macroaxis provides investment recommendation on Johnson Johnson to complement and cross-verify current analyst consensus on Johnson Johnson. Our trade recommendations engine determines the entity's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Johnson Johnson financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Johnson Johnson, including all of Johnson Johnson's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Johnson Johnson assets, the company is considered highly leveraged. Understanding the composition and structure of overall Johnson Johnson debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Johnson Total Liabilities

Johnson Johnson liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Johnson Johnson has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Johnson Johnson balance sheet include debt obligations and money owed to different Johnson Johnson vendors, workers, and loan providers. Below is the chart of Johnson short long-term liabilities accounts currently reported on its balance sheet.
You can use Johnson Johnson financial leverage analysis tool to get a better grip on understanding its financial position

How important is Johnson Johnson's Liquidity

Johnson Johnson financial leverage refers to using borrowed capital as a funding source to finance Johnson Johnson ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Johnson Johnson financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Johnson Johnson's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Johnson Johnson, but it might be worth checking our own buy vs. sell analysis

Breaking it down a bit more

Johnson Johnson reported the last year's revenue of 94.88 B. Total Income to common stockholders was 19.83 B with profit before taxes, overhead, and interest of 64.02 B.

Asset Breakdown

123.8 B
Assets Non Current
87.8 B
Tax Assets
54.8 B
Current Assets
Total Assets178.59 Billion
Current Assets54.77 Billion
Assets Non Current123.82 Billion
Goodwill87.77 Billion
Tax Assets9.12 Billion

Johnson technical analysis signifies possible recoup

Recent coefficient of variation is at 42236.66. Johnson Johnson has relatively low volatility with skewness of 0.28 and kurtosis of 0.12. However, we advise all investors to independently investigate Johnson Johnson to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Johnson Johnson's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Johnson Johnson's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Johnson Johnson Implied Volatility

Johnson Johnson's implied volatility exposes the market's sentiment of Johnson Johnson stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Johnson Johnson's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Johnson Johnson stock will not fluctuate a lot when Johnson Johnson's options are near their expiration.

Our Conclusion on Johnson Johnson

When is the right time to buy or sell Johnson Johnson? Buying stocks such as Johnson Johnson isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
While some short-horizon oriented traders may not share our view, we believe it may be a good time to buy new shares of Johnson.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Johnson Johnson. Please refer to our Terms of Use for any information regarding our disclosure principles.

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