Stock Analysis on Net
Stock Analysis on Net

Zoetis Inc. (NYSE:ZTS)

This company has been moved to the archive! The financial data has not been updated since May 2, 2024.

Common-Size Income Statement 

Zoetis Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue 100.00 100.00 100.00 100.00 100.00
Cost of sales -29.97 -30.37 -29.62 -30.82 -31.82
Gross profit 70.03% 69.63% 70.38% 69.18% 68.18%
Selling, general and administrative expenses -25.18 -24.86 -25.73 -25.86 -26.17
Research and development expenses -7.19 -6.67 -6.53 -6.94 -7.30
Amortization of intangible assets -1.74 -1.86 -2.07 -2.40 -2.48
Restructuring charges and certain acquisition-related costs -0.62 -0.14 -0.55 -0.37 -0.81
Operating income 35.30% 36.10% 35.49% 33.62% 31.42%
Interest expense, net of capitalized interest -2.80 -2.74 -2.88 -3.46 -3.56
Royalty-related income 0.43 0.05 0.13 0.18 0.26
Interest income 1.23 0.62 0.08 0.18 0.59
Identifiable intangible asset impairment charges -0.41 -0.48 -0.35 -0.39 0.00
Other asset impairment charges -0.01 -0.09 -0.04 -0.06 0.00
Net gain on sale of businesses 1.18 0.00 0.00 0.00 0.00
Net gain (loss) on sale of assets 0.00 0.00 -0.04 0.28 0.32
Impairment of an equity investment 0.00 0.00 0.00 -0.06 0.00
Foreign currency loss -0.55 -0.77 -0.35 -0.31 -0.26
Other, net -0.01 0.17 -0.05 -0.07 0.00
Other income (deductions), net 1.86% -0.50% -0.62% -0.25% 0.91%
Income before provision for taxes on income 34.36% 32.87% 32.00% 29.90% 28.77%
Provision for taxes on income -6.98 -6.75 -5.84 -5.39 -4.81
Net income before allocation to noncontrolling interests 27.39% 26.13% 26.16% 24.51% 23.96%
Net loss attributable to noncontrolling interests 0.05 0.04 0.04 0.03 0.00
Net income attributable to Zoetis Inc. 27.43% 26.16% 26.20% 24.54% 23.96%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Revenue
Remained constant at 100% across all periods from 2019 through 2023, serving as the baseline for analysis of other financial metrics expressed as a percentage of revenue.
Cost of sales
Displayed a moderate fluctuation, initially decreasing from -31.82% in 2019 to -29.62% in 2021, indicating improved cost efficiency, followed by slight increases to -30.37% in 2022 and a mild decrease again to -29.97% in 2023. Overall, cost of sales has been relatively stable with a generally positive trend towards lower costs as a percentage of revenue.
Gross profit
Showed a consistent increase from 68.18% in 2019 to a peak of 70.38% in 2021, followed by a slight decline to 69.63% in 2022 and a small rebound to 70.03% in 2023. This indicates sustained gross margin strength over the period.
Selling, general and administrative expenses (SG&A)
Gradually decreased from -26.17% in 2019 to -24.86% in 2022, suggesting improvement in operational efficiency, though it slightly rose again to -25.18% in 2023.
Research and development expenses (R&D)
Experienced a reduction from -7.30% in 2019 to a low of -6.53% in 2021, before rising again to -7.19% by 2023. This variability may reflect shifting investment priorities in innovation activities over time.
Amortization of intangible assets
Demonstrated a steady downward trend from -2.48% in 2019 to -1.74% in 2023, indicating decreasing expenses related to intangible asset amortization as a share of revenue.
Restructuring charges and certain acquisition-related costs
Showed inconsistency with a notable decrease from -0.81% in 2019 to -0.14% in 2022, but an uptick to -0.62% in 2023, reflecting variability in one-time or infrequent charges associated with business restructuring or acquisitions.
Operating income
Exhibited improvement across the period, increasing from 31.42% in 2019 to a high of 36.10% in 2022, with a slight decrease to 35.30% in 2023, indicating stronger operating profitability overall.
Interest expense, net of capitalized interest
Trended downward from -3.56% in 2019 to -2.74% in 2022, with a slight rise to -2.80% in 2023, suggesting modest reduction in interest costs relative to revenue.
Royalty-related income
Generally decreased from 0.26% in 2019 to 0.05% in 2022, followed by a significant increase to 0.43% in 2023, indicating variability in income derived from royalties.
Interest income
Declined from 0.59% in 2019 to 0.08% in 2021, then substantially increased to 1.23% in 2023, showing a rebound and improved returns on invested funds or cash balances in recent years.
Identifiable intangible asset impairment charges
Reported starting in 2020 with small negative impacts around -0.35% to -0.48%, demonstrating occasional, moderate impairments related to intangible assets.
Other asset impairment charges
Appeared sporadically and were relatively minor, ranging from -0.01% to -0.09% during the periods where reported.
Net gain on sale of businesses
Recorded only in 2023 at 1.18%, representing a notable positive one-time impact in that period.
Net gain (loss) on sale of assets
Varied with small gains in 2019 and 2020, turning to a small loss in 2021, and absence of entries thereafter, indicating irregular asset sales outcomes.
Impairment of an equity investment
Noted only in 2020 with a -0.06% impact, indicating a limited impairment during that year.
Foreign currency loss
Increased losses from -0.26% in 2019 to -0.77% in 2022, then improved slightly to -0.55% in 2023, reflecting foreign exchange exposure volatility.
Other, net
Minor fluctuations were observed with small negative values in 2020 and 2021, a positive amount in 2022, and near-neutral in 2023, indicating relatively minor miscellaneous effects.
Other income (deductions), net
Shifted from a positive 0.91% in 2019 to negative values in subsequent years through 2022, then a strong positive rebound to 1.86% in 2023, reflecting variability in other non-operating income and expenses.
Income before provision for taxes on income
Consistently improved from 28.77% in 2019 to 34.36% in 2023, signaling growing profitability before taxes.
Provision for taxes on income
Increased from -4.81% in 2019 to -6.98% in 2023, indicating an increasing effective tax rate or higher taxable income leading to larger tax provisions as a percentage of revenue.
Net income before allocation to noncontrolling interests
Displayed a gradual increase from 23.96% in 2019 to 27.39% in 2023, reflecting improved bottom-line profitability.
Net loss attributable to noncontrolling interests
Consistently small but positive, ranging from 0.03% to 0.05%, indicating negligible impact on net income attributable to the parent company.
Net income attributable to Zoetis Inc.
Experienced steady growth from 23.96% in 2019 to 27.43% in 2023, corroborating an overall positive trend in profitability after accounting for all expenses and income components.