Zoetis Inc (ZTS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 3,348,000 | 3,276,000 | 3,131,000 | 3,223,000 | 3,179,000 | 3,123,000 | 3,068,000 | 2,860,000 | 2,880,000 | 2,786,000 | 2,780,000 | 2,751,000 | 2,715,000 | 2,633,000 | 2,577,000 | 2,424,000 | 2,229,000 | 2,243,000 | 2,168,000 | 2,137,000 |
| Long-term debt | US$ in thousands | 5,220,000 | 6,574,000 | 6,563,000 | 6,562,000 | 6,564,000 | 6,552,000 | 6,555,000 | 6,559,000 | 6,552,000 | 5,210,000 | 5,221,000 | 5,228,000 | 6,592,000 | 6,592,000 | 6,592,000 | 6,587,000 | 6,595,000 | 6,595,000 | 7,194,000 | 5,963,000 |
| 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 |
| Return on total capital | 33.51% | 27.74% | 27.16% | 27.74% | 27.50% | 26.85% | 27.44% | 25.88% | 26.28% | 28.22% | 28.36% | 27.83% | 24.38% | 23.36% | 23.55% | 22.71% | 21.51% | 22.00% | 21.31% | 24.52% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,348,000K ÷ ($5,220,000K + $4,770,000K)
= 33.51%
The return on total capital for Zoetis Inc has shown a generally positive trend over the period from March 31, 2020, to December 31, 2024. The ratio increased from 24.52% in March 2020 to a peak of 33.51% by December 2024. This indicates that the company has been effectively generating profits relative to the total capital invested in the business during this period.
The fluctuation in the return on total capital reflects variations in the company's profitability and efficiency in utilizing its capital resources. The ratio experienced some fluctuations but generally maintained an upward trajectory, suggesting consistent performance in creating value for stakeholders.
The gradual increase in the return on total capital signifies that Zoetis Inc has been successful in optimizing its capital structure and enhancing its overall financial performance over the years. Investors and analysts may view this trend positively as it indicates the company's ability to generate returns on the capital it has employed in its operations.
Overall, the improving trend in Zoetis' return on total capital demonstrates the company's effective management of its resources and its ability to generate value for shareholders through efficient capital allocation and profitable operations.
Peer comparison
Dec 31, 2024