Perform a vertical and horizontal analysis on the johnson & johnson annual report balance sheet for the past 3 years. Include a paragraph where you discuss the results of your analysis, what did you notice (observations) and what conclusions can you make about this business based on this analysis. here are the balance sheets  

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At January 3, 2021 and December 29, 2019 (Dollars in Millions Except Share and Per Share Amounts) (Note 1) 2020 2019 Assets Current assets Cash and cash equivalents (Notes 1 and 2) $13,985 17,305 Marketable securities (Notes 1 and 2) 11,200 1,982 Accounts receivable trade, less allowances for doubtful accounts $293 (2019, $226) 13,576 14,481 Inventories (Notes 1 and 3) 9,344 9,020 Prepaid expenses and other receivables 3,132 2,392 Assets held for sale (Note 18) 94 Total current assets 51,237 45,274 Property, plant and equipment, net (Notes 1 and 4) 18,766 17,658 Intangible assets, net (Notes 1 and 5) Goodwill (Notes 1 and 5) 53,402 47,643 36,393 33,639 Deferred taxes on income (Note 8) 8,534 7,819 Other assets 6,562 5,695 Total assets $174,894 157,728 Liabilities and Shareholders' Equity Current liabilities Loans and notes payable (Note 7) $2,631 1,202 Accounts payable 9,505 8,544 Accrued liabilities 13,968 9,715 Accrued rebates, returns and promotions 11,513 10,883 Accrued compensation and employee related obligations 3,484 3,354 Accrued taxes on income (Note 8) 1,392 2,266 Total current liabilities 42,493 35,964 Long-term debt (Note 7) Deferred taxes on income (Note 8) 32.635 26,494 7,214 5,958 Employee related obligations (Notes 9 and 10) 10,771 10,663 Long-term taxes payable (Note 1) 6,559 7,444 Other liabilities 11,944 11,734 Total liabilities 111,616 98,257 Commitments and Contingencies (Note 19) Shareholders' equity Preferred stock – without par value (authorized and unissued 2,000,000 shares) Common stock – par value $1.00 per share (Note 12) (authorized 4,320,000,000 shares; issued 3,119,843,000 shares) 3,120 3,120 Accumulated other comprehensive income (loss) (Note 13) (15,242) (15,891) Retained earnings 113,890 110,659 101,768 97,888 Less: common stock held in treasury, at cost (Note 12) (487,331,000 shares and 487,336,000 shares) 38,490 38,417 Total shareholders' equity 63,278 59,471 Total liabilities and shareholders' equity $174,894 157,728 At January 3, 2021 and December 29, 2019 (Dollars in Millions Except Share and Per Share Amounts) (Note 1) 2020 2019 Assets Current assets Cash and cash equivalents (Notes 1 and 2) $13,985 17,305 Marketable securities (Notes 1 and 2) 11,200 1,982 Accounts receivable trade, less allowances for doubtful accounts $293 (2019, $226) 13,576 14,481 Inventories (Notes 1 and 3) 9,344 9,020 Prepaid expenses and other receivables 3,132 2,392 Assets held for sale (Note 18) 94 Total current assets 51,237 45,274 Property, plant and equipment, net (Notes 1 and 4) 18,766 17,658 Intangible assets, net (Notes 1 and 5) Goodwill (Notes 1 and 5) 53,402 47,643 36,393 33,639 Deferred taxes on income (Note 8) 8,534 7,819 Other assets 6,562 5,695 Total assets $174,894 157,728 Liabilities and Shareholders' Equity Current liabilities Loans and notes payable (Note 7) $2,631 1,202 Accounts payable 9,505 8,544 Accrued liabilities 13,968 9,715 Accrued rebates, returns and promotions 11,513 10,883 Accrued compensation and employee related obligations 3,484 3,354 Accrued taxes on income (Note 8) 1,392 2,266 Total current liabilities 42,493 35,964 Long-term debt (Note 7) Deferred taxes on income (Note 8) 32.635 26,494 7,214 5,958 Employee related obligations (Notes 9 and 10) 10,771 10,663 Long-term taxes payable (Note 1) 6,559 7,444 Other liabilities 11,944 11,734 Total liabilities 111,616 98,257 Commitments and Contingencies (Note 19) Shareholders' equity Preferred stock – without par value (authorized and unissued 2,000,000 shares) Common stock – par value $1.00 per share (Note 12) (authorized 4,320,000,000 shares; issued 3,119,843,000 shares) 3,120 3,120 Accumulated other comprehensive income (loss) (Note 13) (15,242) (15,891) Retained earnings 113,890 110,659 101,768 97,888 Less: common stock held in treasury, at cost (Note 12) (487,331,000 shares and 487,336,000 shares) 38,490 38,417 Total shareholders' equity 63,278 59,471 Total liabilities and shareholders' equity $174,894 157,728

Answer rating: 100% (QA)

HORIZONTAL ANALYSIS PARTICULARS 2018 2019 CHANGE CHANGE 2019 2020 CHANGE CHANGE ASSETS CURRENT ASSETS CASH AND CASH EQUIVALENTS 1810700 1730500 80200 443 1730500 1398500 332000 1919 MARKETABLE SECURIT... View the full answer