Zimmer Biomet Holdings Inc (ZBH)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	1,285,700	1,250,900	1,238,000	1,216,300	1,277,700	895,200	873,900	825,200	696,300	858,400	856,100	800,000	860,300	1,138,100	1,194,300	797,800	83,100	8,300	-45,100	331,300
Total assets	US$ in thousands	21,365,300	21,720,300	21,520,000	21,452,400	21,496,900	21,217,300	21,294,300	21,243,500	21,066,000	21,333,300	21,452,700	21,617,500	23,456,400	24,008,600	24,223,200	24,026,600	24,417,700	24,025,500	23,647,600	25,512,900
Operating ROA		6.02%	5.76%	5.75%	5.67%	5.94%	4.22%	4.10%	3.88%	3.31%	4.02%	3.99%	3.70%	3.67%	4.74%	4.93%	3.32%	0.34%	0.03%	-0.19%	1.30%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $1,285,700K ÷ $21,365,300K
= 6.02%

Zimmer Biomet Holdings Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the periods indicated. The operating ROA started at 1.30% in March 2020, turned negative at -0.19% in June 2020, and remained close to breakeven at 0.03% in September 2020. There was a noticeable improvement to 0.34% by December 2020.

Subsequently, Zimmer Biomet's operating ROA showed a significant uptrend, reaching 3.32% by March 2021, demonstrating a substantial improvement in the company's operating efficiency. This positive momentum continued, with operating ROA increasing to 4.93% in June 2021 and further to 4.74% by September 2021.

Although there was a slight decline to 3.67% by December 2021, the operating ROA remained relatively stable within the range of 3.31% to 4.10% during the following quarters through June 2023.

Notably, there was a surge in operating ROA to 5.94% by the end of December 2023, followed by a steady increase to 6.02% by December 2024. These improvements suggest that Zimmer Biomet was able to generate a higher operating income relative to its assets during these periods, indicating improved operational efficiency and profitability.

Overall, Zimmer Biomet's operating ROA displays a positive trajectory, reflecting the company's ability to effectively utilize its assets to generate operating income and create value for its stakeholders.