3 ms·
"Not running out of money to pay people fairly"? $65BN is almost exactly equal to one year's gross profits for the company, on top of which J&J has $24BN in ca
by KennyBlanken 3y ago
"Not running out of money to pay people fairly"?
$65BN is almost exactly equal to one year's gross profits for the company, on top of which J&J has $24BN in cash and a market valuation of over $400BN.
https://finance.yahoo.com/quote/JNJ/key-statistics/ https://finance.yahoo.com/quote/JNJ/key-statistics/
That $65BN is likely decades worth of claims, not one lump sum being demanded at once. Assuming the claims are spread out over just one decade, the settlement costs would amount to around 10% of their gross profits. Over multiple decades, it starts approaching "rounding error on the balance sheet."
Framing this as "J&J might run out of money to pay people for this" is pretty disingenuous to the point of feeling like corporate apologism.
- andsoitis 3y agoYou should base your projection on net profits, not gross, given that these would be additional expenses (not considering tax effect). Johnson & Johnson net income for the twelve months ending March 31, 2023 was $12.724B, a 35.83% decline year-over-year. Johnson & Johnson annual net income for 2022 was $17.941B, a 14.07% decline from 2021. Johnson & Johnson annual net income for 2021 was $20.878B, a 41.89% increase from 2020. https://www.macrotrends.net/stocks/charts/JNJ/johnson-johnson/net-income https://www.macrotrends.net/stocks/charts/JNJ/johnson-johnso...
- ClumsyPilot 3y agoThis does not really affect the overall picture - for decades of fraud, this is a paultry sum
- andsoitis 3y agoIt does affect the timeline of paying out victims.