Return on Assets (ROA)
since 2012
Calculation
Zoetis Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to Zoetis1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 16.41% | = | 100 | × | 2,344) | ÷ | 14,286) |
| Dec 31, 2022 | 14.16% | = | 100 | × | 2,114) | ÷ | 14,925) |
| Dec 31, 2021 | 14.65% | = | 100 | × | 2,037) | ÷ | 13,900) |
| Dec 31, 2020 | 12.04% | = | 100 | × | 1,638) | ÷ | 13,609) |
| Dec 31, 2019 | 12.99% | = | 100 | × | 1,500) | ÷ | 11,545) |
| Dec 31, 2018 | 13.25% | = | 100 | × | 1,428) | ÷ | 10,777) |
| Dec 31, 2017 | 10.06% | = | 100 | × | 864) | ÷ | 8,586) |
| Dec 31, 2016 | 10.73% | = | 100 | × | 821) | ÷ | 7,649) |
| Dec 31, 2015 | 4.28% | = | 100 | × | 339) | ÷ | 7,913) |
| Dec 31, 2014 | 8.82% | = | 100 | × | 583) | ÷ | 6,607) |
| Dec 31, 2013 | 7.69% | = | 100 | × | 504) | ÷ | 6,558) |
| Dec 31, 2012 | 6.96% | = | 100 | × | 436) | ÷ | 6,262) |
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 long-term financial performance of Zoetis Inc. from 2012 to 2023 is characterized by a significant expansion in both profitability and asset utilization efficiency. The Return on Assets (ROA) exhibited a general upward trajectory, rising from 6.96% in 2012 to a peak of 16.41% in 2023, despite a notable period of volatility in the mid-decade.
- Net Income Growth
- Net income attributable to the company demonstrates a strong growth pattern, increasing from 436 million US dollars in 2012 to 2,344 million US dollars by 2023. While growth was consistent for most of the period, a sharp contraction occurred in 2015, where net income dropped to 339 million US dollars. Following this dip, a period of accelerated growth was observed, particularly between 2017 and 2018, where income rose from 864 million US dollars to 1,428 million US dollars.
- Asset Base Expansion
- Total assets grew substantially over the analyzed period, expanding from 6,262 million US dollars in 2012 to a peak of 14,925 million US dollars in 2022. The asset base more than doubled over the decade, reflecting significant corporate scaling. A slight contraction in total assets was recorded in 2023, decreasing to 14,286 million US dollars.
- ROA Trend and Asset Efficiency
- The ROA indicates a marked improvement in how effectively assets are leveraged to generate profit. An initial increase was recorded from 2012 to 2014, reaching 8.82%. This was followed by a significant decline in 2015 to 4.28%, coinciding with the drop in net income. However, a robust recovery followed, with ROA surpassing 10% by 2016 and maintaining a generally positive slope. The efficiency gains culminated in 2023, where the ROA reached its highest point of 16.41%, driven by the combination of record net income and a slight reduction in the total asset base.
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Comparison to Competitors
Zoetis Inc., ROA, 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 | 16.41% | 3.61% | 6.91% | 8.43% | 5.64% | 8.19% | 9.12% | 20.98% | 0.34% | 0.94% | 11.95% | 6.07% | 15.92% |
| Dec 31, 2022 | 14.16% | 8.53% | 10.06% | 6.53% | 8.55% | 12.62% | 7.27% | 9.57% | 13.30% | 15.91% | 14.85% | 7.15% | 18.30% |
| Dec 31, 2021 | 14.65% | 7.88% | 9.63% | 6.40% | 7.73% | 11.44% | 9.16% | 11.47% | 12.35% | 12.11% | 31.75% | 8.12% | 17.44% |
| Dec 31, 2020 | 12.04% | 3.07% | 11.54% | -7.61% | 4.79% | 13.28% | 0.18% | 8.41% | 7.72% | 6.23% | 20.47% | 9.23% | 23.07% |
| Dec 31, 2019 | 12.99% | 8.84% | 13.13% | 2.65% | 4.85% | 21.17% | 8.74% | 9.59% | 11.66% | 9.72% | 14.29% | 6.33% | 14.15% |
| Dec 31, 2018 | 13.25% | 9.58% | 12.64% | 14.06% | 5.54% | 7.36% | 8.57% | 10.00% | 7.53% | 7.00% | 20.83% | 5.22% | 33.57% |
| Dec 31, 2017 | 10.06% | 7.50% | 2.48% | 3.00% | 5.34% | -0.45% | 6.58% | 0.83% | 2.72% | 12.40% | 13.67% | 3.93% | 7.43% |
| Dec 31, 2016 | 10.73% | 9.01% | 9.95% | 13.22% | 5.64% | 7.05% | 23.70% | 11.71% | 4.11% | 4.20% | 12.84% | 4.40% | -3.87% |
| Dec 31, 2015 | 4.28% | 9.70% | 9.69% | 4.93% | 6.96% | 6.77% | 34.93% | 11.55% | 4.36% | 4.16% | 11.34% | 4.83% | -22.26% |
| Dec 31, 2014 | 8.82% | 6.44% | 7.47% | 5.94% | 7.02% | 6.43% | 34.91% | 12.45% | 12.12% | 5.40% | 8.99% | 4.42% | -31.63% |
| Dec 31, 2013 | 7.69% | 14.14% | 7.68% | 6.64% | 7.77% | 13.29% | 13.67% | 10.42% | 4.17% | 12.78% | 14.38% | 4.00% | -19.19% |
| Dec 31, 2012 | 6.96% | 19.53% | 8.00% | 5.46% | 7.26% | 11.89% | 12.20% | 8.94% | 5.81% | 7.84% | 36.06% | 4.29% | -3.88% |
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., ROA, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Zoetis Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2023 | 16.41% | 7.25% |
| Dec 31, 2022 | 14.16% | 10.67% |
| Dec 31, 2021 | 14.65% | 10.42% |
| Dec 31, 2020 | 12.04% | 5.45% |
| Dec 31, 2019 | 12.99% | 9.02% |
| Dec 31, 2018 | 13.25% | 8.97% |
| Dec 31, 2017 | 10.06% | 5.28% |
| Dec 31, 2016 | 10.73% | 8.61% |
| Dec 31, 2015 | 4.28% | 8.93% |
| Dec 31, 2014 | 8.82% | 9.45% |
| Dec 31, 2013 | 7.69% | 9.46% |
| Dec 31, 2012 | 6.96% | 8.30% |
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., ROA, long-term trends, comparison to industry (health care)
| Zoetis Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | 16.41% | 7.19% |
| Dec 31, 2022 | 14.16% | 9.66% |
| Dec 31, 2021 | 14.65% | 9.46% |
| Dec 31, 2020 | 12.04% | 5.81% |
| Dec 31, 2019 | 12.99% | 8.32% |
| Dec 31, 2018 | 13.25% | 7.90% |
| Dec 31, 2017 | 10.06% | 5.19% |
| Dec 31, 2016 | 10.73% | 7.31% |
| Dec 31, 2015 | 4.28% | 7.71% |
| Dec 31, 2014 | 8.82% | 8.59% |
| Dec 31, 2013 | 7.69% | 8.76% |
| Dec 31, 2012 | 6.96% | 8.09% |
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).