Zimmer Biomet Holdings Inc (ZBH)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 18.09% | 12.87% | 13.03% | 12.96% | 11.50% | 9.73% | 8.99% | 8.73% | 9.01% | 30.67% | 42.06% | 50.54% | 62.84% | 64.08% | 64.46% | 66.02% | 65.92% | 65.66% | 65.63% | 66.08% |
| Operating profit margin | 17.82% | 12.69% | 12.50% | 11.90% | 10.27% | 12.57% | 12.12% | 10.97% | 11.54% | 14.75% | 15.46% | 11.52% | 1.21% | 0.12% | -0.66% | 4.36% | 14.57% | 0.13% | -0.16% | 1.03% |
| Pretax margin | 14.87% | 10.02% | 9.51% | 8.48% | 5.07% | 4.48% | 4.28% | 3.81% | 6.11% | 10.43% | 11.44% | 7.04% | -3.43% | -2.66% | -3.68% | 1.46% | 11.61% | -3.19% | -3.61% | -2.63% |
| Net profit margin | 14.28% | 6.72% | 7.23% | 6.49% | 3.41% | 4.07% | 3.25% | 2.99% | 5.39% | 10.62% | 11.86% | 8.20% | -2.03% | -2.21% | 0.54% | 4.96% | 14.50% | -1.16% | -4.68% | -4.03% |
Zimmer Biomet Holdings Inc has demonstrated strong profitability over the past several quarters based on its profitability ratios. The gross profit margin has shown a positive trend, consistently improving from 70.90% in Q4 2022 to 71.82% in Q4 2023, indicating effective cost management and pricing strategies.
The operating profit margin has also steadily increased over the quarters, reaching 19.63% in Q4 2023, reflecting the company's ability to control operating expenses and generate more operating income from its revenue.
The pretax margin has shown significant growth, rising from 5.81% in Q4 2022 to 14.43% in Q4 2023. This improvement indicates enhanced efficiency in managing pre-tax earnings, which can be attributed to increased revenue generation and cost control measures.
Moreover, the net profit margin has exhibited a positive trend, increasing from 3.33% in Q4 2022 to 13.85% in Q4 2023. This indicates that Zimmer Biomet Holdings Inc has been effectively converting its revenue into net income, showcasing solid profitability growth.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 4.62% | 0.04% | -0.05% | 0.33% |
| Return on assets (ROA) | 4.76% | 2.24% | 2.37% | 2.12% | 1.10% | 1.30% | 1.07% | 1.01% | 1.71% | 3.41% | 3.78% | 2.36% | -0.57% | -0.63% | 0.16% | 1.48% | 4.59% | -0.37% | -1.48% | -1.27% |
| Return on total capital | 7.36% | 5.08% | 4.98% | 4.75% | 4.05% | 4.96% | 4.95% | 4.62% | 4.75% | 5.94% | 6.16% | 3.99% | 0.42% | 0.04% | -0.23% | 1.69% | 5.95% | 0.06% | -0.07% | 0.40% |
| Return on equity (ROE) | 8.20% | 3.79% | 4.09% | 3.70% | 1.93% | 2.27% | 1.89% | 1.81% | 3.17% | 6.45% | 7.28% | 4.56% | -1.14% | -1.28% | 0.32% | 3.17% | 9.13% | -0.75% | -3.08% | -2.67% |
Zimmer Biomet Holdings Inc has shown a consistent improvement in its profitability ratios over the past quarters. The company's Operating Return on Assets (Operating ROA) has been increasing steadily, indicating that it is generating more operating income from its assets. This demonstrates the company's efficiency in generating profits from its operational activities.
Furthermore, the Return on Assets (ROA) has also been increasing, indicating the company's ability to generate earnings from its total assets. This shows that Zimmer Biomet Holdings Inc is efficiently utilizing its assets to generate profits.
The Return on Total Capital and Return on Equity (ROE) ratios have also shown an upward trend, indicating that the company is generating higher returns for both its capital providers and shareholders. This suggests that the company is effectively managing its capital structure and delivering increased profitability to its investors.
Overall, Zimmer Biomet Holdings Inc's profitability ratios reflect a positive trend, showcasing the company's ability to enhance its financial performance and generate returns for its stakeholders.