Zoetis Inc (ZTS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,997,000 | 4,405,000 | 4,543,000 | 3,769,000 | 2,708,000 |
| ROE | 46.91% | 47.99% | 44.84% | 43.46% | 55.39% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,344,000K ÷ $4,997,000K
= 46.91%
Zoetis Inc's return on equity (ROE) has shown a fluctuating trend over the past five years, ranging from 55.39% in December 2019 to 43.46% in December 2020, and then gradually increasing to 46.91% in December 2023. This indicates that the company has been generating a strong return for its shareholders relative to its equity base during these years.
ROE is a measure of a company's profitability that shows how efficiently it is utilizing its shareholders' equity to generate profits. A higher ROE typically indicates that the company is effectively utilizing its resources to generate earnings.
It is important to note that while Zoetis Inc's ROE has been relatively high over the years, the fluctuations suggest that there may have been variations in the company's profitability and/or changes in its capital structure. Further analysis is required to understand the factors driving these changes in ROE and to assess the sustainability of the company's profitability and growth in the future.
Peer comparison
Dec 31, 2023