Johnson & Johnson ROIC
What is the ROIC of Johnson & Johnson?
The ROIC of Johnson & Johnson is 21.22%
What is the definition of ROIC?
Return on invested capital (ROIC) is a financial ratio that measures how efficient a company is at allocating the capital under its control to profitable investments.
= NOPAT / Invested capital = EBIT * (1 - tax rate) / (2-year average liabilities + 2-year average shareholder equity)
Return on invested capital (ROIC) ratio gives investors a sense of how well a company is using money under its control to generate profitable returns.
ROIC can be used as a benchmark to calculate the valuation of companies across industries. A higher ROIC means the company is doing a better job of investing the money from shareholders and bondholders to run the business. A company is creating value if its ROIC exceeds 2%. If its ROIC is under 2%, the company is likely destroying value and has no excess capital to invest in future growth.
You can calculate ROIC with the following formula:
NOPAT = Net operating profit after tax
Invested Capital = Average total liabilities + Average shareholders' equity
The averages of liabilities and shareholders' equity are calculated as geometrical averages of the last two annual values from the company's balance sheet.
ROIC of companies in the Health Care sector on NYSE compared to Johnson & Johnson
What does Johnson & Johnson do?
Johnson & Johnson is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods.
Companies with roic similar to Johnson & Johnson
- Matachewan Consolidated Mines has ROIC of 21.17%
- Bharat Rasayan has ROIC of 21.17%
- Jemtec has ROIC of 21.19%
- Paychex has ROIC of 21.20%
- 15 Split has ROIC of 21.21%
- Bafang Electric has ROIC of 21.21%
- Johnson & Johnson has ROIC of 21.22%
- RPC has ROIC of 21.24%
- NIC Inc has ROIC of 21.25%
- Gufic Biosciences has ROIC of 21.27%
- Caplin Point Laboratories has ROIC of 21.32%
- Argo Blockchain plc has ROIC of 21.32%
- Stelco has ROIC of 21.33%