Zimmer Biomet Holdings Inc (ZBH)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	1,024,000	231,400	401,600	-138,900	1,131,600
Total assets	US$ in thousands	21,496,900	21,066,000	23,456,400	24,417,700	24,638,700
ROA		4.76%	1.10%	1.71%	-0.57%	4.59%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $1,024,000K ÷ $21,496,900K
= 4.76%

Zimmer Biomet Holdings Inc's return on assets (ROA) has varied significantly over the past five years. In 2023, the company achieved an ROA of 4.76%, indicating that it generated $0.0476 in profit for every dollar of assets. This represents a substantial improvement from the previous year's ROA of 1.10%. The notable increase in ROA suggests that the company has been efficient in utilizing its assets to generate profits.

Looking further back, in 2021, Zimmer Biomet Holdings Inc's ROA was 1.71%, showing a moderate performance in asset utilization. The company experienced a negative ROA in 2020 (-0.57%), indicating that it incurred a loss relative to its asset base. However, the ROA rebounded in 2019 to 4.59%, reflecting a strong asset performance that year.

Overall, Zimmer Biomet Holdings Inc's ROA has demonstrated fluctuations over the past five years, with the company achieving a positive trend in 2023. It is essential for stakeholders to closely monitor these variations in ROA to assess the company's operational efficiency and profitability in relation to its asset base.