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How Johnson & Johnson Spent $71 Billion in 12 Months

Johnson & Johnson CEO Alex Gorsky. Photo credit: Johnson & Johnson.

Business is good at Johnson & Johnson . Over the last 12 months, it's earned $71 billion in revenue, ranking 40th among S&P 500 companies. What does the 129-year-old business do with all its money? The slideshow below provides an answer.

Viewers of the slideshow will learn three interesting points, among other things, from scrolling through it:

  • First, Johnson & Johnson distributed nearly all of its earnings to shareholders over the last 12 months. It did so via dividends and share buybacks.
  • Second, Johnson & Johnson enjoys wide profit margins. Its pre-tax operating margin over the past 12 months was 27% compared to a 17% median for the S&P 500's 100 biggest companies.
  • Which, third, helps explain why shares of the pharmaceutical giant have outperformed the S&P 500 by approximately 1,500 percentage points since 1990.

What else can investors learn about Johnson & Johnson from an analysis of its revenue flows? Scroll through the brief slideshow below to find out.

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All slideshow data sourced from YCharts.com on November 24, 2015. Slideshow image credits: Wikimedia Commons, istock/Thinkstock .

The article How Johnson & Johnson Spent $71 Billion in 12 Months originally appeared on Fool.com.

John Maxfield has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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