Zoetis Inc (ZTS)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	2,024,000	2,008,000	1,896,000	1,871,000
Long-term debt	US$ in thousands	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	5,947,000	6,447,000	6,446,000	6,444,000
Total stockholders’ equity	US$ in thousands	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	2,708,000	2,678,000	2,411,000	2,317,000
Return on total capital		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%	23.39%	22.01%	21.41%	21.36%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $3,179,000K ÷ ($6,564,000K + $4,997,000K)
= 27.50%

Zoetis Inc's return on total capital has been consistent over the past eight quarters, ranging from 23.82% to 26.86%. This indicates the company's ability to generate profits from the total capital invested in its operations. The average return on total capital over this period is approximately 25.75%. The consistent high level of return on total capital reflects Zoetis Inc's efficient use of capital resources to generate earnings for its shareholders. Overall, the company's performance in terms of return on total capital demonstrates strong financial management and operational efficiency.