Financial Modelling: Macro Economical and Industry Analysis

Running Head: Financial Modelling 1

Financial Modelling 2
Contents
Introduction:.....................................................................................................................3
Part A: Macro economical and industry analysis:............................................................3
Current economic condition:............................................................................................3
Industry life cycle and industry growth:...........................................................................4
Porter’s five forces model:................................................................................................4
Ratio analysis:...................................................................................................................6
Recommendation:.............................................................................................................7
References.........................................................................................................................8

Financial Modelling 3
Introduction:
This report emphasize upon the various factors of an organization and its external market. In
the report, the industry, economical and company valuation of Johnson & Johnson has been
evaluated to measure the investment position of the company. the financial performance of last 5
years of the company has also been evaluated to measure the overall performance of the company.
Part A: Macro economical and industry analysis:
For evaluating the external factors of the company, industry evaluation and the macro
economical position of the company has been evaluated which are as follows:
Current economic condition:
The economy of United States has been evaluated and it has been measured that the economy
is among the largest developed mixed economy at worldwide. The purchasing power parity (PPE) of
the company is second largest industry and it is highly developed mixed economy at international
level. The rapid changes have taken place in the economy performance. The US pharmaceuticals
company are among the most crucial national markets.
The pharmaceutical industry evaluation explains that the United states holds around 45% of the
total international pharma market at international level. The US economy along with the Mexico and
Canada explains about the highest continental pharma market at international market. The US
economy report explains that the pharmaceuticals industry is not the innovative one still it is the
largest one. The Statista (2018) explains that the US pharmaceuticals industry has generated around $
5 trillion in past year which contributes around 2% in the total economy of the company.