Zoetis Inc (ZTS)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	2,940,000	2,659,000	2,491,000	1,998,000	1,801,000
Revenue	US$ in thousands	8,544,000	8,080,000	7,776,000	6,675,000	6,260,000
Pretax margin		34.41%	32.91%	32.03%	29.93%	28.77%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $2,940,000K ÷ $8,544,000K
= 34.41%

The pretax margin of Zoetis Inc has shown a consistent upward trend over the past five years, indicating improving profitability before taxes. From 2019 to 2023, the pretax margin has increased from 28.77% to 34.36%, reflecting the company's ability to generate earnings relative to its total revenue. This upward trajectory suggests effective cost management and operational efficiency, leading to higher profitability for Zoetis Inc. The steady growth in pretax margin signifies the company's strong financial performance and potentially sustainable competitive advantage in the market.