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Monday, November 15, 2010

Company Revenues

During the last three annual reporting periods, Johnson and Johnson reported 53.32 billion dollars in net revenue in 2006. They reported 61.1 billion in 2007 and 63.75 billion in 2008. Net revenue is equal to gross profit minus operating expenses. These expenses are usually referred to as overhead.

Net profit is calculated by subtracting expenses from net revenue. Johnson and Johnson has a fairly substantial expense load, as we can see by their reported net profit. In 2006, they reported a 11.06 billion dollars in net profit. They dipped slightly in 2007 to 10.58 billion and then came back strong in 2008 with 12.96 billion in net revenues.

Most investors are interested in growth from year to year, because it shows a track record of steady improvement and added value to their investment. J&J made a large gain in net income from 2006 to 2007. They came in at 7.78 billion higher. The following year they still gained, but by a smaller margin. In 2008 Johnson and Johnson reported a 2.65 billion dollar gain over the previous year.

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