Stock Analysis on Net
Stock Analysis on Net

Zoetis Inc. (NYSE:ZTS)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Zoetis Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2023 46.91% = 16.41% × 2.86
Sep 30, 2023 44.90% = 16.16% × 2.78
Jun 30, 2023 47.85% = 16.10% × 2.97
Mar 31, 2023 46.08% = 15.06% × 3.06
Dec 31, 2022 47.99% = 14.16% × 3.39
Sep 30, 2022 44.33% = 15.12% × 2.93
Jun 30, 2022 45.63% = 15.18% × 3.01
Mar 31, 2022 44.50% = 14.96% × 2.98
Dec 31, 2021 44.84% = 14.65% × 3.06
Sep 30, 2021 42.36% = 14.46% × 2.93
Jun 30, 2021 43.89% = 13.57% × 3.23
Mar 31, 2021 43.38% = 12.86% × 3.37
Dec 31, 2020 43.46% = 12.04% × 3.61
Sep 30, 2020 46.17% = 12.12% × 3.81
Jun 30, 2020 54.23% = 12.37% × 4.38
Mar 31, 2020 58.52% = 13.97% × 4.19
Dec 31, 2019 55.39% = 12.99% × 4.26
Sep 30, 2019 — = — × 4.21
Jun 30, 2019 — = — × 4.56
Mar 31, 2019 — = — × 4.70

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Zoetis Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 46.91% = 27.43% × 0.60 × 2.86
Sep 30, 2023 44.90% = 27.24% × 0.59 × 2.78
Jun 30, 2023 47.85% = 26.92% × 0.60 × 2.97
Mar 31, 2023 46.08% = 25.59% × 0.59 × 3.06
Dec 31, 2022 47.99% = 26.16% × 0.54 × 3.39
Sep 30, 2022 44.33% = 25.81% × 0.59 × 2.93
Jun 30, 2022 45.63% = 26.14% × 0.58 × 3.01
Mar 31, 2022 44.50% = 26.27% × 0.57 × 2.98
Dec 31, 2021 44.84% = 26.20% × 0.56 × 3.06
Sep 30, 2021 42.36% = 26.02% × 0.56 × 2.93
Jun 30, 2021 43.89% = 25.76% × 0.53 × 3.23
Mar 31, 2021 43.38% = 25.30% × 0.51 × 3.37
Dec 31, 2020 43.46% = 24.54% × 0.49 × 3.61
Sep 30, 2020 46.17% = 25.42% × 0.48 × 3.81
Jun 30, 2020 54.23% = 25.50% × 0.49 × 4.38
Mar 31, 2020 58.52% = 25.41% × 0.55 × 4.19
Dec 31, 2019 55.39% = 23.96% × 0.54 × 4.26
Sep 30, 2019 — = — × — × 4.21
Jun 30, 2019 — = — × — × 4.56
Mar 31, 2019 — = — × — × 4.70

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Five-Component Disaggregation of ROE

Zoetis Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2023 46.91% = 0.80 × 0.92 × 37.21% × 0.60 × 2.86
Sep 30, 2023 44.90% = 0.79 × 0.92 × 37.31% × 0.59 × 2.78
Jun 30, 2023 47.85% = 0.78 × 0.92 × 37.31% × 0.60 × 2.97
Mar 31, 2023 46.08% = 0.79 × 0.92 × 35.33% × 0.59 × 3.06
Dec 31, 2022 47.99% = 0.80 × 0.92 × 35.64% × 0.54 × 3.39
Sep 30, 2022 44.33% = 0.80 × 0.92 × 34.79% × 0.59 × 2.93
Jun 30, 2022 45.63% = 0.82 × 0.92 × 34.77% × 0.58 × 3.01
Mar 31, 2022 44.50% = 0.82 × 0.92 × 34.86% × 0.57 × 2.98
Dec 31, 2021 44.84% = 0.82 × 0.92 × 34.92% × 0.56 × 3.06
Sep 30, 2021 42.36% = 0.82 × 0.91 × 34.57% × 0.56 × 2.93
Jun 30, 2021 43.89% = 0.81 × 0.91 × 34.77% × 0.53 × 3.23
Mar 31, 2021 43.38% = 0.81 × 0.90 × 34.57% × 0.51 × 3.37
Dec 31, 2020 43.46% = 0.82 × 0.90 × 33.39% × 0.49 × 3.61
Sep 30, 2020 46.17% = 0.83 × 0.90 × 34.29% × 0.48 × 3.81
Jun 30, 2020 54.23% = 0.83 × 0.90 × 34.20% × 0.49 × 4.38
Mar 31, 2020 58.52% = 0.84 × 0.90 × 33.71% × 0.55 × 4.19
Dec 31, 2019 55.39% = 0.83 × 0.89 × 32.33% × 0.54 × 4.26
Sep 30, 2019 — = — × — × — × — × 4.21
Jun 30, 2019 — = — × — × — × — × 4.56
Mar 31, 2019 — = — × — × — × — × 4.70

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2023 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Zoetis Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2023 16.41% = 27.43% × 0.60
Sep 30, 2023 16.16% = 27.24% × 0.59
Jun 30, 2023 16.10% = 26.92% × 0.60
Mar 31, 2023 15.06% = 25.59% × 0.59
Dec 31, 2022 14.16% = 26.16% × 0.54
Sep 30, 2022 15.12% = 25.81% × 0.59
Jun 30, 2022 15.18% = 26.14% × 0.58
Mar 31, 2022 14.96% = 26.27% × 0.57
Dec 31, 2021 14.65% = 26.20% × 0.56
Sep 30, 2021 14.46% = 26.02% × 0.56
Jun 30, 2021 13.57% = 25.76% × 0.53
Mar 31, 2021 12.86% = 25.30% × 0.51
Dec 31, 2020 12.04% = 24.54% × 0.49
Sep 30, 2020 12.12% = 25.42% × 0.48
Jun 30, 2020 12.37% = 25.50% × 0.49
Mar 31, 2020 13.97% = 25.41% × 0.55
Dec 31, 2019 12.99% = 23.96% × 0.54
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2023 is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Zoetis Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2023 16.41% = 0.80 × 0.92 × 37.21% × 0.60
Sep 30, 2023 16.16% = 0.79 × 0.92 × 37.31% × 0.59
Jun 30, 2023 16.10% = 0.78 × 0.92 × 37.31% × 0.60
Mar 31, 2023 15.06% = 0.79 × 0.92 × 35.33% × 0.59
Dec 31, 2022 14.16% = 0.80 × 0.92 × 35.64% × 0.54
Sep 30, 2022 15.12% = 0.80 × 0.92 × 34.79% × 0.59
Jun 30, 2022 15.18% = 0.82 × 0.92 × 34.77% × 0.58
Mar 31, 2022 14.96% = 0.82 × 0.92 × 34.86% × 0.57
Dec 31, 2021 14.65% = 0.82 × 0.92 × 34.92% × 0.56
Sep 30, 2021 14.46% = 0.82 × 0.91 × 34.57% × 0.56
Jun 30, 2021 13.57% = 0.81 × 0.91 × 34.77% × 0.53
Mar 31, 2021 12.86% = 0.81 × 0.90 × 34.57% × 0.51
Dec 31, 2020 12.04% = 0.82 × 0.90 × 33.39% × 0.49
Sep 30, 2020 12.12% = 0.83 × 0.90 × 34.29% × 0.48
Jun 30, 2020 12.37% = 0.83 × 0.90 × 34.20% × 0.49
Mar 31, 2020 13.97% = 0.84 × 0.90 × 33.71% × 0.55
Dec 31, 2019 12.99% = 0.83 × 0.89 × 32.33% × 0.54
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2023 is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Zoetis Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2023 27.43% = 0.80 × 0.92 × 37.21%
Sep 30, 2023 27.24% = 0.79 × 0.92 × 37.31%
Jun 30, 2023 26.92% = 0.78 × 0.92 × 37.31%
Mar 31, 2023 25.59% = 0.79 × 0.92 × 35.33%
Dec 31, 2022 26.16% = 0.80 × 0.92 × 35.64%
Sep 30, 2022 25.81% = 0.80 × 0.92 × 34.79%
Jun 30, 2022 26.14% = 0.82 × 0.92 × 34.77%
Mar 31, 2022 26.27% = 0.82 × 0.92 × 34.86%
Dec 31, 2021 26.20% = 0.82 × 0.92 × 34.92%
Sep 30, 2021 26.02% = 0.82 × 0.91 × 34.57%
Jun 30, 2021 25.76% = 0.81 × 0.91 × 34.77%
Mar 31, 2021 25.30% = 0.81 × 0.90 × 34.57%
Dec 31, 2020 24.54% = 0.82 × 0.90 × 33.39%
Sep 30, 2020 25.42% = 0.83 × 0.90 × 34.29%
Jun 30, 2020 25.50% = 0.83 × 0.90 × 34.20%
Mar 31, 2020 25.41% = 0.84 × 0.90 × 33.71%
Dec 31, 2019 23.96% = 0.83 × 0.89 × 32.33%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in net profit margin ratio over Q4 2023 is the increase in effect of taxes measured by tax burden ratio.