Question

For your Johnson & Johnson via Calbench or the most recent Annual Report.

1. Review the 10-K report and notes to the financial statements for discussions about long-term debt, dividends and any stock buyback program. Write one full page on each of these three subjects based upon the information you find. Go to Calcbench review financial statements, data, Analytics and MD&A report specifically focusing on Liabilities in regards to the industry peers of your company.  This week summarize and reflect on the debts of the industry as a whole and compare this to your company's debt load.  

Answer 1

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's long-term debt divide by its Total Assets. Johnson & Johnson's long-term debt for the quarter that ended in Sep. 2018 was $29,480 Mil. Johnson & Johnson's Total Assets for the quarter that ended in Sep. 2018 was $155,703 Mil. Johnson & Johnson's LT-Debt-to-Total-Asset for the quarter that ended in Sep. 2018 was 0.19.

Johnson & Johnson's LT-Debt-to-Total-Asset increased from Sep. 2017 (0.17) to Sep. 2018 (0.19). It may suggest that Johnson & Johnson is progressively becoming more dependent on debt to grow their business.

Johnson & Johnson's Long-Term Debt to Total Asset Ratio for the quarter that ended in Sep. 2018 is calculated as:

LT-Debt-to-Total-Asset (Q: Sep. 2018 )	=	Long-Term Debt & Capital Lease Obligation (Q: Sep. 2018 )	/	Total Assets (Q: Sep. 2018 )
	=	29480	/	155703
	=	0.19

Johnson & Johnson announced that its Board of Directors has declared a cash dividend for the third quarter of 2018 of $0.90 per share on the company’s common stock. The dividend was paid on September 11, 2018 to shareholders of record at the close of business on August 28, 2018. The ex-dividend date was August 27, 2018.

Johnson & Johnson announced a new share-repurchase plan that will allow for up to $5 billion in stock buybacks. CEO Alex Gorsky announced that "Based on our continued strong performance and, more importantly, the confidence we have in our business going forward, the Board of Directors and management team believe that the company's shares are an attractive investment opportunity,". Johnson & Johnson does not expect to incur debt to fund the program,

Liabilities of Johnson & Johnson in comparis

Johnson & Johnson, Debt to Equity
	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 28, 2014	Dec 29, 2013
Selected Financial Data (USD $ in millions)
Loans and notes payable	3,906	4,684	7,004	3,638	4,852
Long-term debt, excluding current portion	30,675	22,442	12,857	15,122	13,328
Total debt	34,581	27,126	19,861	18,760	18,180
Shareholders’ equity	60,160	70,418	71,150	69,752	74,053
Ratio
Debt to equity	0.57	0.39	0.28	0.27	0.25
Benchmarks
Debt to Equity, Competitors
Abbott Laboratories	0.90	1.07	0.42	0.36	0.26
AbbVie Inc.	7.33	7.95	8.03	8.62	3.28
Allergan PLC	0.41	0.43	0.56	0.55	0.95
Amgen Inc.	1.40	1.16	1.12	1.19	1.45
Biogen Inc.	0.47	0.54	0.70	0.05	–
Bristol-Myers Squibb Co.	0.68	0.41	0.47	0.53	0.55
Celgene Corp.	2.29	2.17	2.41	1.05	0.85
Eli Lilly & Co.	1.18	0.74	0.55	0.52	0.30
Gilead Sciences Inc.	1.64	1.39	1.20	0.80	0.58
Merck & Co. Inc.	0.71	0.62	0.59	0.44	0.50
Pfizer Inc.	0.61	0.71	0.60	0.51	0.48
Regeneron Pharmaceuticals Inc.	0.11	0.11	0.10	0.18	0.26
Debt to Equity, Sector
Pharmaceuticals & Biotechnology	0.84	0.76	0.69	0.55	–
Debt to Equity, Industry
Health Care	0.81	0.76	0.70	0.55	–

ion to industry is as under: