Zoetis Inc (ZTS)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,544,000 | 8,371,000 | 8,222,000 | 8,094,000 | 8,080,000 | 8,007,000 | 7,995,000 | 7,891,000 | 7,776,000 | 7,616,000 | 7,412,000 | 7,012,000 | 6,675,000 | 6,542,000 | 6,340,000 | 6,339,000 | 6,260,000 | 6,150,000 | 6,046,000 | 5,914,000 |
| Property, plant and equipment | US$ in thousands | 3,204,000 | 3,092,000 | 3,011,000 | 2,913,000 | 2,753,000 | 2,623,000 | 2,559,000 | 2,487,000 | 2,422,000 | 2,338,000 | 2,286,000 | 2,227,000 | 2,202,000 | 2,099,000 | 2,011,000 | 1,977,000 | 1,940,000 | 1,813,000 | 1,739,000 | 1,683,000 |
| Fixed asset turnover | 2.67 | 2.71 | 2.73 | 2.78 | 2.93 | 3.05 | 3.12 | 3.17 | 3.21 | 3.26 | 3.24 | 3.15 | 3.03 | 3.12 | 3.15 | 3.21 | 3.23 | 3.39 | 3.48 | 3.51 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,544,000K ÷ $3,204,000K
= 2.67
The fixed asset turnover for Zoetis Inc has shown a consistent downward trend over the past eight quarters, decreasing from 3.17 in Q1 2022 to 2.67 in Q4 2023. This indicates that the company's ability to generate sales from its fixed assets has gradually declined.
A fixed asset turnover below 3 suggests that Zoetis Inc may not be utilizing its fixed assets as efficiently as before to generate revenue. This could be due to various factors such as underutilization of assets, depreciation of assets without corresponding increases in revenue, or inefficient allocation of resources.
It is important for Zoetis Inc to closely monitor and analyze the reasons behind this downward trend in fixed asset turnover and take corrective actions to improve efficiency in utilizing its fixed assets. This could involve optimizing asset utilization, upgrading equipment, or reassessing capital allocation strategies. By addressing these issues, Zoetis Inc may be able to enhance its profitability and overall financial performance in the long run.
Peer comparison
Dec 31, 2023