Zoetis Inc (ZTS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 799,000 | 782,000 | 671,000 | 616,000 | 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 |
| Total assets | US$ in thousands | 14,237,000 | 14,357,000 | 14,165,000 | 14,348,000 | 14,286,000 | 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 |
| Operating ROA | 5.61% | 5.45% | 4.74% | 4.29% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $799,000K ÷ $14,237,000K
= 5.61%
Operating ROA is a key financial ratio that measures a company's efficiency in generating operating profits relative to its total assets. Zoetis Inc's Operating ROA has shown some fluctuations over the analyzed period. The ratio started at a strong level of 17.21% as of March 31, 2020, indicating effective asset utilization to generate operating income. However, there was a notable decline by December 31, 2020, where the ratio dropped significantly to 1.03%, possibly due to challenges affecting profitability or asset efficiency during that period.
Subsequently, there was a gradual improvement in Zoetis Inc's Operating ROA performance, with the ratio steadily increasing to 5.61% by December 31, 2024. This upward trend suggests that the company has been able to enhance its operating efficiency and profitability in relation to its total assets over time. The ratio reached its peak of 5.61% by December 31, 2024, indicating that Zoetis Inc has been able to effectively manage its assets to drive operating returns.
Overall, the trend in Zoetis Inc's Operating ROA reflects a mix of challenges and improvements in operational efficiency and asset utilization. It is important for investors and analysts to closely monitor this ratio to assess the company's ability to generate profits from its operational activities in relation to its asset base.
Peer comparison
Dec 31, 2024