Zoetis Inc (ZTS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 723,000 | 511,000 | 565,000 | 392,000 | 124,000 |
| Total assets | US$ in thousands | 14,237,000 | 14,286,000 | 14,925,000 | 13,900,000 | 13,600,000 |
| Operating ROA | 5.08% | 3.58% | 3.79% | 2.82% | 0.91% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $723,000K ÷ $14,237,000K
= 5.08%
Operating ROA is a key financial metric that indicates how effectively a company is generating operating profits from its total assets. Zoetis Inc's Operating ROA has shown a positive trend over the past five years, increasing from 0.91% as of December 31, 2020, to 5.08% as of December 31, 2024. This improvement suggests that the company has been able to enhance its operating efficiency and profitability in utilizing its assets during this period.
The steady growth in Operating ROA demonstrates Zoetis Inc's ability to generate a higher level of operating income relative to its asset base, reflecting strong operational performance and effective asset management. This increasing trend indicates that Zoetis Inc has been successful in maximizing the returns generated from its assets over the years, which is a positive indicator of the company's financial health and management effectiveness.
Overall, the consistent improvement in Zoetis Inc's Operating ROA reflects a positive trajectory in the company's operational performance and profitability, showcasing its ability to efficiently utilize its assets to generate operating income.
Peer comparison
Dec 31, 2024