Zoetis Inc (ZTS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,770,000 | 4,997,000 | 4,405,000 | 4,543,000 | 3,769,000 |
| ROE | 52.12% | 46.91% | 47.99% | 44.84% | 43.46% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,486,000K ÷ $4,770,000K
= 52.12%
The return on equity (ROE) for Zoetis Inc has shown a consistent upward trend over the past five years. Starting at 43.46% on December 31, 2020, the ROE increased to 52.12% by December 31, 2024. This signifies a strong performance in generating profits relative to the shareholders' equity invested in the company.
The rising trend in ROE indicates that Zoetis Inc has been effectively utilizing its shareholder funds to generate profits. The company's ability to efficiently manage its resources and generate higher returns for its shareholders is reflected in the increasing ROE figures.
Overall, the increasing ROE for Zoetis Inc suggests that the company has been successful in enhancing its profitability and creating value for its shareholders over the years. It also indicates that the company's management is making sound strategic decisions that are positively impacting its financial performance.
Peer comparison
Dec 31, 2024