Zoetis Inc (ZTS)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,256,000 | 8,544,000 | 8,080,000 | 7,776,000 | 6,675,000 |
| Property, plant and equipment | US$ in thousands | 3,391,000 | 3,204,000 | 2,753,000 | 2,422,000 | 2,202,000 |
| Fixed asset turnover | 2.73 | 2.67 | 2.93 | 3.21 | 3.03 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,256,000K ÷ $3,391,000K
= 2.73
The fixed asset turnover of Zoetis Inc has shown a consistent trend over the period from December 31, 2020, to December 31, 2024. The ratio increased from 3.03 in 2020 to 3.21 in 2021, indicating that the company was generating $3.21 in revenue for each dollar invested in fixed assets. However, there was a slight decline in the ratio to 2.93 in 2022, followed by a more noticeable decrease to 2.67 in 2023, and a subsequent increase to 2.73 in 2024.
Overall, the company's fixed asset turnover suggests that it has been effectively utilizing its fixed assets to generate revenue, although there was a decline in efficiency in 2023 before a modest recovery in 2024. This ratio is crucial for investors and analysts to assess how efficiently the company is using its fixed assets to generate sales revenue.
Peer comparison
Dec 31, 2024