Return on Equity (ROE)
since 2012
Calculation
Zoetis Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income attributable to Zoetis1 | ÷ | Total Zoetis Inc. equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 46.91% | = | 100 | × | 2,344) | ÷ | 4,997) |
| Dec 31, 2022 | 47.99% | = | 100 | × | 2,114) | ÷ | 4,405) |
| Dec 31, 2021 | 44.84% | = | 100 | × | 2,037) | ÷ | 4,543) |
| Dec 31, 2020 | 43.46% | = | 100 | × | 1,638) | ÷ | 3,769) |
| Dec 31, 2019 | 55.39% | = | 100 | × | 1,500) | ÷ | 2,708) |
| Dec 31, 2018 | 65.35% | = | 100 | × | 1,428) | ÷ | 2,185) |
| Dec 31, 2017 | 48.81% | = | 100 | × | 864) | ÷ | 1,770) |
| Dec 31, 2016 | 55.21% | = | 100 | × | 821) | ÷ | 1,487) |
| Dec 31, 2015 | 31.74% | = | 100 | × | 339) | ÷ | 1,068) |
| Dec 31, 2014 | 44.47% | = | 100 | × | 583) | ÷ | 1,311) |
| Dec 31, 2013 | 53.62% | = | 100 | × | 504) | ÷ | 940) |
| Dec 31, 2012 | 10.83% | = | 100 | × | 436) | ÷ | 4,026) |
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 financial data indicates a positive overall growth trend in net income attributable to Zoetis over the analyzed period. Starting at US$436 million in 2012, net income experienced some fluctuations but generally trended upwards, reaching US$2,344 million by 2023. Notably, there was a significant dip in 2015 where net income decreased to US$339 million from US$583 million in 2014. However, from 2016 onwards, the net income consistently increased, reflecting a strong recovery and sustained profitability.
Total equity of the company showed a somewhat erratic pattern in the early years, with a sharp decline from US$4,026 million in 2012 to US$940 million in 2013, followed by a gradual recovery. From 2014 to 2023, equity generally increased, reaching US$4,997 million in 2023. This rise indicates strengthening shareholder value and reinvestment of earnings back into the company. The dip in 2013 and subsequent fluctuations may suggest capital adjustments such as buybacks, dividends, or restructuring.
The Return on Equity (ROE) exhibited considerable volatility, with an unusually high ROE in 2013 (53.62%) and 2016 (55.21%). These peaks contrast with a relatively lower ROE of 10.83% in 2012 and 31.74% in 2015, despite net income and equity trends. From 2017 to 2023, the ROE stabilized within a range of approximately 43% to 66%, signifying strong efficiency in generating profits from shareholders' equity. The consistently high ROE in these years demonstrates effective utilization of equity capital, positively impacting investor returns.
Overall, the analysis shows growth in profitability accompanied by a recovery and growth in equity. The high and relatively stable ROE levels in the later years underscore operational effectiveness and financial strength. The fluctuations in equity and net income during the early part of the period highlight phases of restructuring or significant financial activity, but the subsequent trends suggest successful corporate management and expansion efforts.
Comparison to Competitors
Zoetis Inc., ROE, 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 | 46.91% | 46.94% | 107.78% | 27.27% | 8.91% | 48.65% | 24.81% | 51.11% | 0.97% | 2.38% | 15.22% | 12.83% | 20.59% |
| Dec 31, 2022 | 47.99% | 68.60% | 178.97% | 20.37% | 14.39% | 58.64% | 21.62% | 23.36% | 31.57% | 32.79% | 19.14% | 15.80% | 23.88% |
| Dec 31, 2021 | 44.84% | 74.91% | 87.96% | 19.46% | 14.24% | 62.16% | 29.55% | 28.20% | 34.17% | 28.47% | 43.03% | 18.94% | 23.19% |
| Dec 31, 2020 | 43.46% | 35.30% | 77.20% | -23.84% | 9.17% | 109.79% | 0.68% | 23.25% | 27.91% | 15.21% | 31.86% | 18.47% | 31.22% |
| Dec 31, 2019 | 55.39% | — | 81.07% | 6.66% | 9.94% | 319.09% | 23.91% | 25.42% | 37.99% | 25.77% | 19.08% | 12.45% | 19.34% |
| Dec 31, 2018 | 65.35% | — | 67.15% | 35.07% | 9.40% | 32.88% | 25.51% | 25.60% | 23.30% | 17.59% | 27.91% | 10.65% | 47.28% |
| Dec 31, 2017 | 48.81% | 104.16% | 7.84% | 8.58% | 9.45% | -1.76% | 22.64% | 2.16% | 6.97% | 29.47% | 19.51% | 8.76% | 12.99% |
| Dec 31, 2016 | 55.21% | 128.41% | 25.85% | 27.55% | 11.10% | 19.54% | 71.48% | 23.49% | 9.78% | 12.12% | 20.13% | 9.39% | -9.69% |
| Dec 31, 2015 | 31.74% | 130.39% | 24.71% | 10.97% | 14.17% | 16.53% | 97.70% | 21.66% | 9.94% | 10.75% | 17.40% | 9.25% | -59.19% |
| Dec 31, 2014 | 44.47% | 101.84% | 20.01% | 13.49% | 11.11% | 15.55% | 78.45% | 23.40% | 24.50% | 12.81% | 13.69% | 9.22% | -68.70% |
| Dec 31, 2013 | 53.62% | 91.90% | 23.00% | 16.91% | 12.04% | 26.57% | 27.05% | 18.68% | 8.85% | 28.83% | 21.74% | 7.55% | -32.81% |
| Dec 31, 2012 | 10.83% | 156.85% | 22.80% | 14.39% | 12.58% | 27.69% | 27.84% | 16.74% | 11.63% | 17.93% | 60.24% | 7.62% | -10.71% |
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., ROE, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Zoetis Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2023 | 46.91% | 20.65% |
| Dec 31, 2022 | 47.99% | 27.99% |
| Dec 31, 2021 | 44.84% | 29.75% |
| Dec 31, 2020 | 43.46% | 17.22% |
| Dec 31, 2019 | 55.39% | 27.68% |
| Dec 31, 2018 | 65.35% | 26.29% |
| Dec 31, 2017 | 48.81% | 14.59% |
| Dec 31, 2016 | 55.21% | 22.19% |
| Dec 31, 2015 | 31.74% | 21.44% |
| Dec 31, 2014 | 44.47% | 20.91% |
| Dec 31, 2013 | 53.62% | 20.33% |
| Dec 31, 2012 | 10.83% | 18.27% |
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., ROE, long-term trends, comparison to industry (health care)
| Zoetis Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | 46.91% | 18.50% |
| Dec 31, 2022 | 47.99% | 22.94% |
| Dec 31, 2021 | 44.84% | 23.78% |
| Dec 31, 2020 | 43.46% | 15.95% |
| Dec 31, 2019 | 55.39% | 21.79% |
| Dec 31, 2018 | 65.35% | 18.65% |
| Dec 31, 2017 | 48.81% | 14.05% |
| Dec 31, 2016 | 55.21% | 18.22% |
| Dec 31, 2015 | 31.74% | 18.18% |
| Dec 31, 2014 | 44.47% | 18.58% |
| Dec 31, 2013 | 53.62% | 18.25% |
| Dec 31, 2012 | 10.83% | 17.51% |
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).