Zoetis Inc (ZTS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.92% | 41.60% | 41.65% | 41.00% | 38.85% |
| Operating profit margin | 7.81% | 5.98% | 6.99% | 5.04% | 1.86% |
| Pretax margin | 33.74% | 34.41% | 32.91% | 32.03% | 29.93% |
| Net profit margin | 26.86% | 27.43% | 26.16% | 26.20% | 24.54% |
Zoetis Inc's profitability ratios have shown positive trends over the past five years, reflecting an improvement in its overall profitability.
- Gross profit margin has consistently increased from 38.85% in 2020 to 42.92% in 2024, indicating the company's ability to efficiently control its production and distribution costs.
- Operating profit margin has also shown steady improvement, rising from 1.86% in 2020 to 7.81% in 2024. This suggests that Zoetis has been able to enhance its operational efficiency and increase profitability from its core business activities.
- Pretax margin has demonstrated a generally upward trajectory, reaching 33.74% in 2024. This indicates that Zoetis has been effectively managing its expenses and operating income before taxes.
- Net profit margin, while showing a slight decrease in 2023, has remained relatively stable overall, ranging from 24.54% in 2020 to 26.86% in 2024. This implies that Zoetis has been able to maintain healthy levels of profitability after accounting for all expenses, including taxes and interest.
In conclusion, Zoetis Inc's profitability ratios suggest a positive trend, indicating effective cost management and operational efficiency, which have contributed to the company's overall profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.08% | 3.58% | 3.79% | 2.82% | 0.91% |
| Return on assets (ROA) | 17.46% | 16.41% | 14.16% | 14.65% | 12.04% |
| Return on total capital | 33.51% | 27.50% | 26.28% | 24.38% | 21.51% |
| Return on equity (ROE) | 52.12% | 46.91% | 47.99% | 44.84% | 43.46% |
Profitability ratios provide insights into a company's ability to generate profits relative to its assets and capital. Let's analyze the profitability ratios of Zoetis Inc based on the provided data:
1. Operating return on assets (Operating ROA):
- Zoetis Inc's Operating ROA has shown a positive trend over the years, increasing from 0.91% in 2020 to 5.08% in 2024. This indicates that the company has been more efficient in generating operating profits from its assets.
2. Return on assets (ROA):
- ROA measures the overall profitability of a company. Zoetis Inc's ROA has also been on an upward trajectory, rising from 12.04% in 2020 to 17.46% in 2024. This signifies that the company has been effective in generating profits relative to its total assets.
3. Return on total capital:
- Return on total capital reflects the efficiency of a company in generating profits from both equity and debt capital. Zoetis Inc's return on total capital has exhibited a consistent increase, reaching 33.51% in 2024. This suggests that the company has been successful in utilizing its total capital to generate returns for its stakeholders.
4. Return on equity (ROE):
- ROE assesses a company's ability to generate profits for its shareholders. Zoetis Inc's ROE has shown a positive trend, growing from 43.46% in 2020 to 52.12% in 2024. This indicates that the company has been able to deliver increasing returns to its equity investors over the years.
Overall, the profitability ratios of Zoetis Inc demonstrate a favorable performance, portraying efficient utilization of assets and capital to generate profits and create value for its shareholders.