Zoetis Inc (ZTS)

Return on assets (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
Net income (ttm)	US$ in thousands	2,344,000	2,280,000	2,213,000	2,071,000	2,114,000	2,067,000	2,090,000	2,073,000	2,037,000	1,982,000	1,909,000	1,774,000	1,638,000	1,663,000	1,617,000	1,611,000	1,500,000	1,461,000	1,375,000	1,388,000
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
ROA		16.39%	16.16%	16.10%	15.06%	14.16%	15.12%	15.18%	14.96%	14.65%	14.46%	13.57%	12.86%	12.04%	12.12%	12.37%	13.97%	12.99%	12.96%	12.52%	12.75%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $2,344,000K ÷ $14,300,000K
= 16.39%

To analyze Zoetis Inc's return on assets (ROA) based on the provided data, we observe a consistent upward trend in ROA over the past eight quarters. The ROA has steadily improved from 14.16% in Q4 2022 to 16.41% in Q4 2023, indicating an enhancement in the company's ability to generate profits relative to its total assets in this period.

This progressive trend suggests that Zoetis Inc has been effectively utilizing its assets to generate earnings, showcasing operational efficiency and profitability. The company's management may have implemented strategies to optimize asset utilization, leading to an increase in ROA over time.

Overall, the positive trajectory of Zoetis Inc's ROA signals a healthy financial performance and efficient utilization of assets, which bodes well for the company's profitability and sustainability in the foreseeable future.