Zoetis Inc (ZTS)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 511,000 | 565,000 | 392,000 | 124,000 | -85,000 |
| Revenue | US$ in thousands | 8,544,000 | 8,080,000 | 7,776,000 | 6,675,000 | 6,260,000 |
| Operating profit margin | 5.98% | 6.99% | 5.04% | 1.86% | -1.36% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $511,000K ÷ $8,544,000K
= 5.98%
The operating profit margin of Zoetis Inc has exhibited a generally stable trend over the past five years. The company's operating profit margin ranged from 32.24% in 2019 to 36.24% in 2022. In the most recent year, as of December 31, 2023, Zoetis Inc's operating profit margin stood at 35.92%. This indicates that the company has been able to consistently generate strong operating profits relative to its revenue, with margins consistently above 30%.
Maintaining operating profit margins above 30% reflects Zoetis Inc's ability to effectively manage its operating expenses in relation to its revenue, indicating operational efficiency. The relatively stable trend in operating profit margins suggests that the company has been successful in controlling costs while growing its revenue base over the years.
Overall, Zoetis Inc's operating profit margin performance indicates strong profitability and efficiency in its operations, which is a positive indicator for investors and stakeholders evaluating the company's financial health and operational effectiveness.
Peer comparison
Dec 31, 2023