Zoetis Inc (ZTS)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,486,000 | 2,344,000 | 2,114,000 | 2,037,000 | 1,638,000 |
| Total assets | US$ in thousands | 14,237,000 | 14,286,000 | 14,925,000 | 13,900,000 | 13,600,000 |
| ROA | 17.46% | 16.41% | 14.16% | 14.65% | 12.04% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $2,486,000K ÷ $14,237,000K
= 17.46%
The return on assets (ROA) of Zoetis Inc has shown a consistent upward trend over the past five years, increasing from 12.04% as of December 31, 2020, to 17.46% as of December 31, 2024. This indicates that the company has been effectively utilizing its assets to generate profits. The improvement in ROA can be attributed to efficient management of assets and an increase in profitability relative to the size of its asset base. It suggests that Zoetis Inc has been successful in generating more earnings from its assets over time, which is a positive sign of financial health and operational efficiency. The company's ability to maintain and improve its ROA is crucial for sustaining growth and creating value for its shareholders.
Peer comparison
Dec 31, 2024