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 performance from 2012 to 2023 is characterized by a substantial expansion in net income and a significant restructuring of equity, resulting in a transition from a low initial return on equity to a consistently high performance regime.
- Net Income Growth
- Net income attributable to Zoetis demonstrated a strong upward trajectory, increasing from US$ 436 million in 2012 to US$ 2,344 million in 2023. While a temporary decline occurred in 2015, the long-term trend reflects consistent growth in absolute profitability over the twelve-year period.
- Equity Capital Dynamics
- A significant reduction in total equity was observed between 2012 and 2013, where the balance dropped from US$ 4,026 million to US$ 940 million. Following this sharp contraction, equity grew steadily for nearly a decade, ending at US$ 4,997 million in 2023, suggesting a deliberate rebuild of the capital base over time.
- Return on Equity (ROE) Analysis
- The ROE exhibited high volatility in the early period, jumping from 10.83% in 2012 to 53.62% in 2013, a move largely attributable to the reduced equity denominator. The ratio reached a peak of 65.35% in 2018. In the most recent four years (2020-2023), the ROE has stabilized within a narrow range between 43.46% and 47.99%, indicating a sustained and efficient conversion of equity into profit.
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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% | 19.40% |
| Dec 31, 2022 | 47.99% | 24.82% |
| Dec 31, 2021 | 44.84% | 25.44% |
| Dec 31, 2020 | 43.46% | 16.70% |
| Dec 31, 2019 | 55.39% | 23.30% |
| Dec 31, 2018 | 65.35% | 21.27% |
| Dec 31, 2017 | 48.81% | 13.77% |
| Dec 31, 2016 | 55.21% | 18.53% |
| Dec 31, 2015 | 31.74% | 18.52% |
| Dec 31, 2014 | 44.47% | 19.17% |
| Dec 31, 2013 | 53.62% | 18.81% |
| Dec 31, 2012 | 10.83% | 18.20% |
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).