Zoetis Inc (ZTS)
Total asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,256,000 | 9,152,000 | 8,915,000 | 8,734,000 | 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 |
| Total assets | US$ in thousands | 14,237,000 | 14,357,000 | 14,165,000 | 14,348,000 | 14,286,000 | 14,106,000 | 13,749,000 | 13,754,000 | 14,925,000 | 13,674,000 | 13,770,000 | 13,860,000 | 13,900,000 | 13,705,000 | 14,069,000 | 13,796,000 | 13,600,000 | 13,725,000 | 13,069,000 | 11,528,000 |
| Total asset turnover | 0.65 | 0.64 | 0.63 | 0.61 | 0.60 | 0.59 | 0.60 | 0.59 | 0.54 | 0.59 | 0.58 | 0.57 | 0.56 | 0.56 | 0.53 | 0.51 | 0.49 | 0.48 | 0.49 | 0.55 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $9,256,000K ÷ $14,237,000K
= 0.65
Total asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its assets. It indicates how efficiently a company is using its assets to generate sales.
Analyzing Zoetis Inc's total asset turnover over the past few quarters shows a generally increasing trend, with the ratio improving from 0.55 in March 2020 to 0.65 in December 2024. This indicates that Zoetis has become more efficient in utilizing its assets to generate sales over this period.
A total asset turnover ratio above 1 is usually considered favorable, as it indicates that for each dollar of assets, the company is generating more than a dollar in sales revenue. Zoetis' total asset turnover ratios below 1 suggest that the company may have relatively high levels of assets compared to its sales revenue. However, the increasing trend indicates improvement in asset utilization efficiency.
The consistent upward trend in total asset turnover over the analyzed period suggests that Zoetis has been able to improve its operational efficiency and effectively leverage its assets to drive revenue growth. Investors and stakeholders may view this positively as it indicates improving operational performance and potentially increasing profitability.
Peer comparison
Dec 31, 2024