Zimmer Biomet Holdings Inc (ZBH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 17.72% | 18.09% | 11.50% | 9.09% | 63.31% |
| Operating profit margin | 17.29% | 17.82% | 10.27% | 11.53% | 1.22% |
| Pretax margin | 13.92% | 14.87% | 5.07% | 6.10% | -3.46% |
| Net profit margin | 12.16% | 14.28% | 3.41% | 5.38% | -2.05% |
Zimmer Biomet Holdings Inc's profitability ratios have shown a significant improvement over the years based on the provided data. The Gross Profit Margin, which indicates the percentage of revenue that exceeds the cost of goods sold, increased from 63.31% in 2020 to 17.72% in 2024. This suggests that the company has been able to control its cost of goods sold more effectively.
The Operating Profit Margin, which reflects the company's ability to generate profit from its core operations, has also shown an upward trend, rising from 1.22% in 2020 to 17.29% in 2024. This indicates that Zimmer Biomet has been able to improve its operational efficiency and profitability over the years.
The Pretax Margin, which measures the company's profitability before taxes, improved from -3.46% in 2020 to 13.92% in 2024. This demonstrates the company's ability to manage its expenses and generate higher profits before tax implications.
Lastly, the Net Profit Margin, which shows the percentage of revenue that translates into net profit, increased from -2.05% in 2020 to 12.16% in 2024. This indicates that Zimmer Biomet has been successful in maximizing its bottom-line profitability after accounting for all expenses and taxes.
Overall, Zimmer Biomet Holdings Inc has exhibited a positive trajectory in its profitability ratios, showcasing improved efficiency and profitability in its operations over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.02% | 5.94% | 3.31% | 3.67% | 0.34% |
| Return on assets (ROA) | 4.23% | 4.76% | 1.10% | 1.71% | -0.57% |
| Return on total capital | 7.22% | 7.36% | 4.05% | 4.75% | 0.42% |
| Return on equity (ROE) | 7.25% | 8.20% | 1.93% | 3.17% | -1.14% |
Zimmer Biomet Holdings Inc's profitability ratios have shown a positive trend over the years. The Operating return on assets (Operating ROA) increased from 0.34% in December 31, 2020 to 6.02% in December 31, 2024, indicating improved operational efficiency in generating profits from its assets.
Similarly, the Return on assets (ROA) demonstrated a positive trajectory, rising from -0.57% in December 31, 2020 to 4.23% in December 31, 2024, reflecting the company's ability to generate profits relative to its total assets.
The Return on total capital also displayed a notable improvement, increasing from 0.42% in December 31, 2020 to 7.22% in December 31, 2024, indicating efficient utilization of both equity and debt capital to generate returns.
Moreover, the Return on equity (ROE) witnessed significant growth, from -1.14% in December 31, 2020 to 7.25% in December 31, 2024, highlighting the company's capability to generate profits for its shareholders relative to their equity investments.
Overall, Zimmer Biomet Holdings Inc's profitability ratios show a positive trend, reflecting the company's improving financial performance and effectiveness in utilizing its assets and capital to generate returns for its stakeholders.