Zoetis Inc (ZTS)
Total 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 |
| Total assets | US$ in thousands | 14,237,000 | 14,286,000 | 14,925,000 | 13,900,000 | 13,600,000 |
| Total asset turnover | 0.65 | 0.60 | 0.54 | 0.56 | 0.49 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $9,256,000K ÷ $14,237,000K
= 0.65
Total asset turnover is a key financial ratio that measures a company's efficiency in utilizing its assets to generate revenue. For Zoetis Inc, the total asset turnover has shown an increasing trend over the past five years. In 2020, the total asset turnover ratio was 0.49, indicating that the company generated $0.49 in revenue for every dollar of assets.
By the end of 2024, the total asset turnover had increased to 0.65, demonstrating that Zoetis Inc became more efficient in utilizing its assets to generate revenue. This improvement suggests that the company has been able to increase sales relative to its asset base, which is a positive sign of operational efficiency.
Overall, the increasing trend in Zoetis Inc's total asset turnover ratio signifies that the company has been effectively managing its assets to drive revenue growth. An increasing total asset turnover ratio is generally a favorable indicator of operational efficiency and could potentially lead to improved profitability in the future.
Peer comparison
Dec 31, 2024