Zimmer Biomet Holdings Inc (ZBH)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	1,277,700	696,300	860,300	83,100	1,137,500
Total assets	US$ in thousands	21,496,900	21,066,000	23,456,400	24,417,700	24,638,700
Operating ROA		5.94%	3.31%	3.67%	0.34%	4.62%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,277,700K ÷ $21,496,900K
= 5.94%

Zimmer Biomet Holdings Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years, with consistent improvements in this metric. The operating ROA increased from 5.49% in 2019 to 6.75% in 2023, indicating that the company has been able to generate more operating income relative to its total assets over time.

This improvement suggests that Zimmer Biomet has been effectively utilizing its assets to generate operating profits. A higher operating ROA indicates better operational efficiency and profitability, as the company is able to generate more income from its asset base.

The gradual increase in operating ROA is a positive indicator for investors and stakeholders, as it signifies the company's ability to maximize returns on its assets. Zimmer Biomet's improving performance in this metric suggests effective management of resources and a focus on enhancing operational effectiveness.

Overall, the upward trend in Zimmer Biomet's operating ROA signifies improved financial performance and efficiency in managing its assets to generate operating income.