Zoetis Inc (ZTS)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 2,486,000 | 2,430,000 | 2,344,000 | 2,391,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 4,770,000 | 5,234,000 | 4,966,000 | 5,058,000 | 4,997,000 | 5,078,000 | 4,625,000 | 4,494,000 | 4,405,000 | 4,663,000 | 4,580,000 | 4,658,000 | 4,543,000 | 4,679,000 | 4,350,000 | 4,089,000 | 3,769,000 | 3,602,000 | 2,982,000 | 2,753,000 |
| ROE | 52.12% | 46.43% | 47.20% | 47.27% | 46.91% | 44.90% | 47.85% | 46.08% | 47.99% | 44.33% | 45.63% | 44.50% | 44.84% | 42.36% | 43.89% | 43.38% | 43.46% | 46.17% | 54.23% | 58.52% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,486,000K ÷ $4,770,000K
= 52.12%
Zoetis Inc's return on equity (ROE) has shown a consistent trend over the analyzed period. The ROE has fluctuated between a range of approximately 43% to 58%, eventually settling at 52.12% as of December 31, 2024. This indicates that the company has been able to generate substantial returns for its shareholders relative to the amount of equity invested in the business.
The declining trend observed in the ROE from its peak of 58.52% on March 31, 2020, to its low of 42.36% on September 30, 2021, suggests a potential decrease in the company's profitability and efficiency in utilizing shareholder equity during that period. However, the subsequent recovery and stabilization of the ROE from 2022 onwards, consistently above 44%, indicate a positive turnaround in the company's performance.
Zoetis Inc's ability to maintain a ROE above 44% indicates efficient management of its assets and effective utilization of equity capital to generate earnings. Shareholders can be reassured by the company's ability to generate strong returns on the equity invested in the business, reflecting positively on its overall financial health and operational efficiency.
Peer comparison
Dec 31, 2024