Zoetis Inc (ZTS)
Total 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 |
| Total assets | US$ in thousands | 14,300,000 | 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 | 11,545,000 | 11,272,000 | 10,986,000 | 10,883,000 |
| Total asset turnover | 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 | 0.54 | 0.55 | 0.55 | 0.54 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $8,544,000K ÷ $14,300,000K
= 0.60
Total asset turnover is a financial ratio that indicates how efficiently a company is utilizing its assets to generate revenue. It is calculated by dividing net sales by average total assets. In the case of Zoetis Inc, the total asset turnover ratio has shown relative stability over the past quarters, ranging from 0.54 to 0.60.
A total asset turnover ratio of less than 1 suggests that the company is generating less revenue per dollar of assets, indicating lower efficiency in asset utilization. Zoetis Inc's ratio typically hovers around 0.59, indicating that for each dollar of assets, the company is generating approximately 59 cents in revenue.
It is important to note that while a stable total asset turnover ratio may indicate consistent asset efficiency, further analysis is required to understand the factors influencing this metric. External factors such as market conditions, competition, and strategic decisions could impact the company's ability to generate revenue from its assets. Tracking changes in total asset turnover over time can provide insights into Zoetis Inc's operational performance and efficiency in capital utilization.
Peer comparison
Dec 31, 2023