Zimmer Biomet Holdings Inc (ZBH)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,285,700 | 1,277,700 | 696,300 | 860,300 | 83,100 |
| Total assets | US$ in thousands | 21,365,300 | 21,496,900 | 21,066,000 | 23,456,400 | 24,417,700 |
| Operating ROA | 6.02% | 5.94% | 3.31% | 3.67% | 0.34% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,285,700K ÷ $21,365,300K
= 6.02%
To analyze Zimmer Biomet Holdings Inc's operating return on assets (operating ROA) based on the provided data:
1. The operating ROA has shown a steady increase over the years, from 0.34% on December 31, 2020, to 6.02% on December 31, 2024.
2. This indicates that the company has been able to generate more operating income from its assets over time, reflecting improved operational efficiency or profitability.
3. The significant jump in operating ROA between December 31, 2023 (5.94%) and December 31, 2024 (6.02%) suggests a notable improvement in the company's ability to generate profits from its asset base within a short period.
4. Overall, the increasing trend in operating ROA is a positive sign of Zimmer Biomet Holdings Inc's ability to utilize its assets effectively to generate operating profits, which can lead to enhanced shareholder value and sustainable growth prospects.
In conclusion, the steadily increasing operating ROA for Zimmer Biomet Holdings Inc reflects improving efficiency and profitability trends in the company's operations.
Peer comparison
Dec 31, 2024