Net Profit Margin
since 2012
Calculation
Zoetis Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income attributable to Zoetis1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 27.43% | = | 100 | × | 2,344) | ÷ | 8,544) |
| Dec 31, 2022 | 26.16% | = | 100 | × | 2,114) | ÷ | 8,080) |
| Dec 31, 2021 | 26.20% | = | 100 | × | 2,037) | ÷ | 7,776) |
| Dec 31, 2020 | 24.54% | = | 100 | × | 1,638) | ÷ | 6,675) |
| Dec 31, 2019 | 23.96% | = | 100 | × | 1,500) | ÷ | 6,260) |
| Dec 31, 2018 | 24.52% | = | 100 | × | 1,428) | ÷ | 5,825) |
| Dec 31, 2017 | 16.28% | = | 100 | × | 864) | ÷ | 5,307) |
| Dec 31, 2016 | 16.80% | = | 100 | × | 821) | ÷ | 4,888) |
| Dec 31, 2015 | 7.11% | = | 100 | × | 339) | ÷ | 4,765) |
| Dec 31, 2014 | 12.18% | = | 100 | × | 583) | ÷ | 4,785) |
| Dec 31, 2013 | 11.05% | = | 100 | × | 504) | ÷ | 4,561) |
| Dec 31, 2012 | 10.06% | = | 100 | × | 436) | ÷ | 4,336) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 US$ in millions
The net profit margin exhibits a strong long-term upward trajectory, increasing from 10.06% in 2012 to 27.43% in 2023. This progression indicates a substantial improvement in the ability to convert revenue into net income over the analyzed twelve-year period.
- Early Performance and Period of Volatility
- Between 2012 and 2014, the net profit margin grew steadily from 10.06% to 12.18%. This was followed by a sharp contraction in 2015, where the margin declined to 7.11%, the lowest point in the series. A rapid recovery occurred in 2016, with the margin rebounding to 16.80%.
- Accelerated Profitability Expansion
- A significant acceleration in profitability is observed between 2017 and 2018, as the net profit margin climbed from 16.28% to 24.52%. This shift established a higher baseline for earnings efficiency that persisted through the remainder of the period.
- Stabilization and Peak Efficiency
- From 2019 to 2023, the net profit margin remained consistently elevated, fluctuating within a narrow range between 23.96% and 27.43%. The period concludes at a peak margin of 27.43% in 2023, reflecting optimized operational performance.
The growth in net income has significantly outpaced the growth in revenue. While revenue increased from 4,336 million US$ to 8,544 million US$, net income rose from 436 million US$ to 2,344 million US$. This divergence underscores that the expansion of the net profit margin has been a primary driver of bottom-line growth, rather than volume increases alone.
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Comparison to Competitors
Zoetis Inc., net profit margin, long-term trends, comparison to competitors
| Zoetis Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 27.43% | 8.95% | 24.96% | 17.83% | 19.94% | 15.36% | 21.03% | 41.28% | 0.61% | 3.56% | 30.14% | 13.99% | 36.68% |
| Dec 31, 2022 | 26.16% | 20.39% | 26.42% | 13.71% | 22.91% | 21.88% | 17.02% | 18.90% | 24.49% | 31.01% | 35.64% | 15.47% | 37.20% |
| Dec 31, 2021 | 26.20% | 20.54% | 24.25% | 15.08% | 21.84% | 19.71% | 23.05% | 22.26% | 26.79% | 26.76% | 50.25% | 19.70% | 30.92% |
| Dec 31, 2020 | 24.54% | 10.08% | 29.97% | -21.20% | 16.36% | 25.24% | 0.51% | 17.82% | 14.72% | 22.53% | 41.35% | 19.79% | 43.70% |
| Dec 31, 2019 | 23.96% | 23.69% | 35.32% | 13.15% | 16.80% | 37.27% | 24.35% | 18.42% | 21.01% | 31.45% | 26.91% | 14.47% | 28.27% |
| Dec 31, 2018 | 24.52% | 17.36% | 37.25% | 21.81% | 13.33% | 13.16% | 25.16% | 18.75% | 14.71% | 20.79% | 36.42% | 12.06% | 68.80% |
| Dec 31, 2017 | 16.28% | 18.82% | 9.08% | 4.85% | 13.60% | -0.89% | 18.03% | 1.70% | 5.97% | 40.55% | 20.41% | 10.64% | 10.59% |
| Dec 31, 2016 | 16.80% | 23.22% | 35.27% | 22.94% | 15.13% | 12.90% | 45.07% | 23.01% | 9.85% | 13.66% | 18.42% | 11.06% | -6.58% |
| Dec 31, 2015 | 7.11% | 22.50% | 33.13% | 9.45% | 16.33% | 12.07% | 56.32% | 21.99% | 11.25% | 14.25% | 15.50% | 11.64% | -53.89% |
| Dec 31, 2014 | 12.18% | 8.89% | 26.69% | 12.62% | 13.05% | 12.19% | 49.44% | 21.96% | 28.22% | 18.42% | 12.34% | 11.22% | -127.25% |
| Dec 31, 2013 | 11.05% | 21.97% | 27.93% | 15.64% | 14.10% | 20.27% | 28.46% | 19.40% | 10.00% | 42.65% | 20.16% | 9.73% | -36.72% |
| Dec 31, 2012 | 10.06% | 28.70% | 26.11% | 11.12% | 13.10% | 18.09% | 27.57% | 16.14% | 13.05% | 24.70% | 54.43% | 9.42% | -7.01% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Zoetis Inc., net profit margin, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Zoetis Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2023 | 27.43% | 17.95% |
| Dec 31, 2022 | 26.16% | 22.55% |
| Dec 31, 2021 | 26.20% | 23.38% |
| Dec 31, 2020 | 24.54% | 14.07% |
| Dec 31, 2019 | 23.96% | 23.22% |
| Dec 31, 2018 | 24.52% | 19.82% |
| Dec 31, 2017 | 16.28% | 13.06% |
| Dec 31, 2016 | 16.80% | 20.78% |
| Dec 31, 2015 | 7.11% | 21.17% |
| Dec 31, 2014 | 12.18% | 21.24% |
| Dec 31, 2013 | 11.05% | 21.99% |
| Dec 31, 2012 | 10.06% | 18.53% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Industry (Health Care)
Zoetis Inc., net profit margin, long-term trends, comparison to industry (health care)
| Zoetis Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | 27.43% | 11.49% |
| Dec 31, 2022 | 26.16% | 14.65% |
| Dec 31, 2021 | 26.20% | 15.24% |
| Dec 31, 2020 | 24.54% | 10.27% |
| Dec 31, 2019 | 23.96% | 14.56% |
| Dec 31, 2018 | 24.52% | 12.61% |
| Dec 31, 2017 | 16.28% | 9.26% |
| Dec 31, 2016 | 16.80% | 12.80% |
| Dec 31, 2015 | 7.11% | 13.94% |
| Dec 31, 2014 | 12.18% | 14.40% |
| Dec 31, 2013 | 11.05% | 15.04% |
| Dec 31, 2012 | 10.06% | 13.92% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).