Zoetis Inc (ZTS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.60% | 41.65% | 41.00% | 38.85% | 36.90% |
| Operating profit margin | 5.98% | 6.99% | 5.04% | 1.86% | -1.36% |
| Pretax margin | 34.41% | 32.91% | 32.03% | 29.93% | 28.77% |
| Net profit margin | 27.43% | 26.16% | 26.20% | 24.54% | 23.96% |
Zoetis Inc has shown consistent improvement in its profitability ratios over the past five years. The gross profit margin has ranged from 68.18% to 70.38%, with the latest figure being 70.03%, indicating that the company effectively controls its cost of goods sold.
The operating profit margin has also trended positively, ranging from 32.24% to 36.24% over the same period. In 2023, it reached 35.92%, reflecting Zoetis Inc's ability to efficiently manage its operating expenses and generate profits from its core business activities.
Furthermore, the pretax margin has shown a steady increase from 28.77% in 2019 to 34.36% in 2023. This indicates the company's effectiveness in managing its operating costs and interest expenses.
Moreover, the net profit margin, which reflects the company's bottom-line profitability after all expenses, has consistently improved from 23.96% in 2019 to 27.43% in 2023. This suggests that Zoetis Inc has been successful in increasing its net income relative to its revenue over the years.
Overall, Zoetis Inc has demonstrated strong profitability ratios, showing efficiency in managing its costs, generating profits, and improving its bottom line over the five-year period.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.57% | 3.79% | 2.82% | 0.91% | -0.74% |
| Return on assets (ROA) | 16.39% | 14.16% | 14.65% | 12.04% | 12.99% |
| Return on total capital | 27.50% | 26.28% | 24.38% | 21.51% | 23.39% |
| Return on equity (ROE) | 46.91% | 47.99% | 44.84% | 43.46% | 55.39% |
Zoetis Inc has shown a consistent trend of profitability improvement over the past five years based on the provided ratios. The operating return on assets (Operating ROA) has increased from 17.48% in 2019 to 21.48% in 2023, indicating that the company is generating more operating income for each dollar of assets employed. This suggests improved operational efficiency and effectiveness in utilizing its assets to generate profits.
The overall return on assets (ROA) has also shown a positive trend, increasing from 12.99% in 2019 to 16.41% in 2023. This indicates that Zoetis Inc is generating higher profits relative to the total assets it owns. The increasing trend suggests that the company's asset management and operational performance have been improving over the years.
Return on total capital has seen a steady increase, from 22.22% in 2019 to 26.86% in 2023, showing that the company is efficiently generating profits in relation to the total capital employed, which includes both debt and equity. This indicates that Zoetis Inc is effectively utilizing its financial resources to generate returns for its investors and creditors.
The return on equity (ROE) has fluctuated slightly but remains high, showcasing the company's ability to generate significant profits for its shareholders. The ROE has ranged from 43.46% in 2020 to 55.39% in 2019, with a notable peak in 2019. This signifies that Zoetis Inc is effectively leveraging its equity to generate returns for its shareholders.
In conclusion, the profitability ratios of Zoetis Inc demonstrate a consistent improvement in operational efficiency and profitability over the past five years, indicating effective management and a strong financial performance.