Zoetis Inc (ZTS)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 563,000 | 543,000 | 507,000 | 448,000 | 583,000 | 442,000 | 443,000 | 469,000 | 480,000 | 444,000 | 452,000 | 350,000 | 140,000 | 1,966,000 | 1,889,000 | 1,984,000 | 2,001,000 | 1,891,000 | 1,797,000 | 1,732,000 |
| 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 |
| Operating ROA | 3.94% | 3.85% | 3.69% | 3.26% | 3.91% | 3.23% | 3.22% | 3.38% | 3.45% | 3.24% | 3.21% | 2.54% | 1.03% | 14.32% | 14.45% | 17.21% | 17.33% | 16.78% | 16.36% | 15.91% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $563,000K ÷ $14,300,000K
= 3.94%
To analyze Zoetis Inc's operating return on assets (operating ROA) based on the provided data:
1. Stability and Trend: Zoetis Inc's operating ROA has shown a stable and slightly increasing trend over the past eight quarters. The figures have fluctuated between 19.62% and 21.64%, with a gradual improvement from 19.62% in Q4 2022 to 21.64% in Q2 2023.
2. Performance Comparison: Zoetis Inc's operating ROA remains consistently above 20%, indicating efficient utilization of its assets to generate operating income. This level of performance is generally considered favorable, as it suggests the company is effectively managing its asset base to generate earnings.
3. Outliers: While there is not a significant outlier in the data, it is worth noting that Q2 2023 recorded the highest operating ROA of 21.64% during the period under review. This could indicate a particularly strong performance during that quarter.
4. Operational Efficiency: The consistent and relatively high operating ROA figures suggest that Zoetis Inc is effectively managing its operations and assets to generate profits. This efficiency in utilizing assets to generate operating income is a positive sign for investors and stakeholders.
5. Future Prospects: The positive trend in operating ROA over the past quarters signifies the company's ability to continually enhance operational efficiency. If Zoetis Inc can sustain or further improve its operating ROA, it could indicate continued profitability and value creation for shareholders in the future.
In conclusion, based on the analysis of Zoetis Inc's operating ROA data, the company has demonstrated a stable and efficient utilization of its assets to generate operating income, with a trend of improvement over the past eight quarters. Maintaining this level of operational efficiency could bode well for the company's financial performance and outlook.
Peer comparison
Dec 31, 2023