Zoetis Inc (ZTS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,344,000 | 2,114,000 | 2,037,000 | 1,638,000 | 1,500,000 |
| Total assets | US$ in thousands | 14,300,000 | 14,925,000 | 13,900,000 | 13,600,000 | 11,545,000 |
| ROA | 16.39% | 14.16% | 14.65% | 12.04% | 12.99% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $2,344,000K ÷ $14,300,000K
= 16.39%
Zoetis Inc's return on assets (ROA) has shown a positive trend over the past five years. The ROA increased from 12.99% in 2019 to 16.41% in 2023, indicating that the company's ability to generate profits from its assets has improved over time.
A higher ROA suggests that Zoetis Inc is efficiently utilizing its assets to generate earnings for its shareholders. This could be attributed to factors such as effective asset management, cost control measures, or revenue growth strategies.
Overall, the consistent improvement in ROA reflects positively on Zoetis Inc's operational efficiency and profitability, signaling a strong financial performance and effective utilization of resources.
Peer comparison
Dec 31, 2023