The modern age could be called the era of blistering development of economy and industry. That is why there is no use denying the fact that the world and society depend on the state of the economy greatly. Being the main contributors to the development of various states, giant companies could be taken as the actors that determine the current state of the development of society and its future. The fact is that due to the activity of these very companies, many people are provided with jobs and budgets of states obtain high incomes. Additionally, very often, the revenues of these companies are bigger than the budgets of some countries.
That is why, taking into account the great significance of these companies and the impact, which they have on the modern world, it is possible to analyze the main facts of about one of these companies in order to obtain the information about its revenues, stock price and current stage of its development. Under these conditions, Johnson and Johnson Company is chosen as the company for the analysis because of its great performance and revenues.
First of all, the background of the company should be analyzed in order to understand its evolution. Thus, nowadays, Johnson and Johnson is the world’s biggest manufacturer of pharmaceutical and consumer packaged goods and multinational medical devices (“Johnson & Johnson History” para.3). The company was founded in 1886 and was oriented on the creation of surgical dresses. Thus, in the process of its development, it managed to achieve great success and ramp up production. The fact is that nowadays, Johnson and Johnson is listed among the Fortune 500 could be taken as the great evidence of the company’s success (Bennet para. 8). It is headquartered in New Brunswick, New Jersey. However, nowadays, it is a giant international company with a great number of departments all over the world.
Nevertheless, it should be said that the company continues its development. According to its last annual report, in 2014, Johnson and Johnson managed to increase its worldwide sales to $74.3 billion, or 4.2% (Johnson & Johnson, “Annual Report 2014” 3.). The given statistics outline the tendency towards the increase in the number of sales and, as a result, the rise of the level of income. In 2010 the revenue in the customer segment was about $14.6 billion, while according to the company’s third-quarter financial highlights, the sales were about $17.1 billion (Johnson & Johnson, “Third Quarter 2015 Earnings Call Presentation” 5).
That is why it is possible to admit the fact that the revenues of the company grow. The current level of income allows Johnson and Johnson to open new departments and create new facilities that could help the company to develop and introduce new products to the market.
Nevertheless, resting on these facts, it is possible to say that the company is very attractive to investors. The fact is that the stable development of the company influences the price of its shares and people, organizations and companies understand the advantages and profitability of investments in the given organization. All these facts determine the growing interest in the shares of the company. Nowadays, the average stock price is about $100, with the market cap $278,880,248,367.
Thus it could oscillate (“Johnson & Johnson Stock Quote & Summary Data” para. 1). Additionally, specialists predict the further rise of Johnson and Johnson stock because of the combination of factors that could have a beneficial effect on the future of the company and its development (“Three Reasons Johnson & Johnson Stock Could Rise” para. 2). That is why, resting on these facts, it is possible to say that the company could guarantee high and stable incomes for its shareholders.
The above-mentioned information could be taken as evidence of the beneficial development of the company, which now passes through the stage the intensive growth and evolution. The current stage of its development could be taken as very positive, and the company is one of the most influential international companies in the world. Thus, the company also had difficult periods of its evolution, when the level of its revenues decreased significantly. Johnson and Johnson also suffered from the aftermath of the world financial crisis, though, in a less degree than some other companies (Bennet para. 4). Additionally, it managed to donate money to some charity organizations, which could be taken as evidence of the great profitability of the company.
Finally, it is vital to admit the fact that the company deals both with customers who buy its products and with various organizations, which use equipment of various products manufactured by the company. That is why the revenue of the company and its profit are guaranteed by direct sales and some other deals between various organizations and even governments (Bennet para. 6).
With this in mind, it is possible to make a certain conclusion. It should be said that nowadays, Johnson and Johnson could be taken as one of the greatest international companies with a great level of income and stock price. The company continues its development and spreads its influence. Additionally, one should admit the fact that nowadays, the company functions in a great number of countries all over the world and guarantees its further beneficial evolution and prosperity.
Works Cited
Bennet, Johanna. “J&J’s History of Creating Wealth Should Continue“. Barrons. 2015. Web.
Johnson & Johnson. Annual Report 2014. n.d. Web.
—. Third Quarter 2015 Earnings Call Presentation. 2015. Web.
Johnson & Johnson History. n.d. Web.
Johnson & Johnson Stock Quote & Summary Data. 2015. Web.
Three Reasons Johnson & Johnson Stock Could Rise. 2015. Web.