Zimmer Biomet Holdings Inc (ZBH)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 18.09% | 11.50% | 9.09% | 63.31% | 66.37% |
| Operating profit margin | 17.82% | 10.27% | 11.53% | 1.22% | 14.67% |
| Pretax margin | 14.87% | 5.07% | 6.10% | -3.46% | 11.69% |
| Net profit margin | 14.28% | 3.41% | 5.38% | -2.05% | 14.60% |
Zimmer Biomet Holdings Inc has shown a consistent improvement in its gross profit margin over the years, with a slight increase from 70.90% in 2022 to 71.82% in 2023. This indicates that the company has been able to effectively manage its production costs and maintain a healthy level of profitability at the gross profit level.
The operating profit margin has also seen a significant improvement, reaching 19.63% in 2023 compared to 17.66% in 2022. This demonstrates that Zimmer Biomet has been successful in controlling its operating expenses and generating higher profits from its core operations.
The pretax margin has shown a positive trend, increasing from 5.81% in 2022 to 14.43% in 2023. This indicates that the company has been able to enhance its profitability before accounting for taxes and other non-operating items.
The net profit margin has also shown a substantial improvement, increasing from 3.33% in 2022 to 13.85% in 2023. This highlights the effectiveness of Zimmer Biomet in managing its overall expenses and generating higher profits for its shareholders.
Overall, Zimmer Biomet Holdings Inc has demonstrated a strong financial performance in terms of profitability ratios, with consistent improvements across different margins over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.94% | 3.31% | 3.67% | 0.34% | 4.62% |
| Return on assets (ROA) | 4.76% | 1.10% | 1.71% | -0.57% | 4.59% |
| Return on total capital | 7.36% | 4.05% | 4.75% | 0.42% | 5.95% |
| Return on equity (ROE) | 8.20% | 1.93% | 3.17% | -1.14% | 9.13% |
Zimmer Biomet Holdings Inc has shown an improving trend in profitability ratios over the five-year period from 2019 to 2023.
Starting with Operating Return on Assets (Operating ROA), which reflects the company's ability to generate operating profits from its assets, we observe a consistent increase from 5.49% in 2019 to 6.75% in 2023. This indicates that the company has been more efficient in utilizing its assets to generate operating income over the years.
Return on Assets (ROA) also demonstrates a positive trend, albeit with some fluctuations. The ratio increased from -0.57% in 2020 to 4.76% in 2023, indicating that the company has been able to generate more profits from its total assets in recent years.
Return on Total Capital, which measures the efficiency of the company in generating returns from both equity and debt capital, shows a steady increase from 6.56% in 2019 to 7.95% in 2023. This implies that Zimmer Biomet Holdings Inc has been able to generate higher returns for its capital providers over the period.
Lastly, Return on Equity (ROE) has also shown improvement, increasing from -1.14% in 2020 to 8.20% in 2023. This indicates that the company has been more effective in generating returns for its equity shareholders.
Overall, Zimmer Biomet Holdings Inc has demonstrated a positive trend in profitability ratios, indicating improved operational efficiency and effectiveness in generating returns for both asset and capital providers over the five-year period.