Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Zoetis Inc. (NYSE:ZTS)

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

Beginner level


Two-Component Disaggregation of ROE

Zoetis Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
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 54.56% = 12.96% × 4.21
Jun 30, 2019 57.03% = 12.52% × 4.56
Mar 31, 2019 59.91% = 12.75% × 4.70
Dec 31, 2018 65.35% = 13.25% × 4.93
Sep 30, 2018 54.96% = 11.13% × 4.94
Jun 30, 2018 56.60% = 12.96% × 4.37
Mar 31, 2018 49.90% = 11.25% × 4.43
Dec 31, 2017 48.81% = 10.06% × 4.85
Oct 1, 2017 47.11% = 10.09% × 4.67
Jul 2, 2017 51.20% = 11.25% × 4.55
Apr 2, 2017 53.14% = 11.18% × 4.75
Dec 31, 2016 55.21% = 10.73% × 5.14
Oct 2, 2016 43.47% = 8.93% × 4.87
Jul 3, 2016 47.09% = 8.50% × 5.54
Apr 3, 2016 32.45% = 5.07% × 6.40
Dec 31, 2015 31.74% = 4.28% × 7.41
Sep 27, 2015 = × 5.44
Jun 28, 2015 = × 5.61
Mar 29, 2015 = × 5.03

Based on: 10-Q (filing date: 2020-08-06), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-11-07), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-16), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in profitability measured by return on assets ratio (ROA).


Three-Component Disaggregation of ROE

Zoetis Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
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 54.56% = 23.76% × 0.55 × 4.21
Jun 30, 2019 57.03% = 22.74% × 0.55 × 4.56
Mar 31, 2019 59.91% = 23.47% × 0.54 × 4.70
Dec 31, 2018 65.35% = 24.52% × 0.54 × 4.93
Sep 30, 2018 54.96% = 20.35% × 0.55 × 4.94
Jun 30, 2018 56.60% = 19.95% × 0.65 × 4.37
Mar 31, 2018 49.90% = 17.97% × 0.63 × 4.43
Dec 31, 2017 48.81% = 16.28% × 0.62 × 4.85
Oct 1, 2017 47.11% = 18.29% × 0.55 × 4.67
Jul 2, 2017 51.20% = 17.50% × 0.64 × 4.55
Apr 2, 2017 53.14% = 17.25% × 0.65 × 4.75
Dec 31, 2016 55.21% = 16.80% × 0.64 × 5.14
Oct 2, 2016 43.47% = 14.10% × 0.63 × 4.87
Jul 3, 2016 47.09% = 13.15% × 0.65 × 5.54
Apr 3, 2016 32.45% = 7.83% × 0.65 × 6.40
Dec 31, 2015 31.74% = 7.11% × 0.60 × 7.41
Sep 27, 2015 = × × 5.44
Jun 28, 2015 = × × 5.61
Mar 29, 2015 = × × 5.03

Based on: 10-Q (filing date: 2020-08-06), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-11-07), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-16), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in efficiency measured by asset turnover ratio.


Five-Component Disaggregation of ROE

Zoetis Inc., decomposition of ROE (quarterly data)

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
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 54.56% = 0.82 × 0.89 × 32.65% × 0.55 × 4.21
Jun 30, 2019 57.03% = 0.82 × 0.88 × 31.36% × 0.55 × 4.56
Mar 31, 2019 59.91% = 0.84 × 0.89 × 31.64% × 0.54 × 4.70
Dec 31, 2018 65.35% = 0.84 × 0.89 × 32.62% × 0.54 × 4.93
Sep 30, 2018 54.96% = 0.68 × 0.90 × 33.28% × 0.55 × 4.94
Jun 30, 2018 56.60% = 0.65 × 0.90 × 33.82% × 0.65 × 4.37
Mar 31, 2018 49.90% = 0.61 × 0.90 × 32.91% × 0.63 × 4.43
Dec 31, 2017 48.81% = 0.57 × 0.90 × 32.07% × 0.62 × 4.85
Oct 1, 2017 47.11% = 0.71 × 0.89 × 29.14% × 0.55 × 4.67
Jul 2, 2017 51.20% = 0.70 × 0.88 × 28.12% × 0.64 × 4.55
Apr 2, 2017 53.14% = 0.69 × 0.88 × 28.20% × 0.65 × 4.75
Dec 31, 2016 55.21% = 0.67 × 0.88 × 28.56% × 0.64 × 5.14
Oct 2, 2016 43.47% = 0.64 × 0.87 × 25.24% × 0.63 × 4.87
Jul 3, 2016 47.09% = 0.63 × 0.87 × 23.84% × 0.65 × 5.54
Apr 3, 2016 32.45% = 0.58 × 0.82 × 16.29% × 0.65 × 6.40
Dec 31, 2015 31.74% = 0.62 × 0.81 × 14.04% × 0.60 × 7.41
Sep 27, 2015 = × × × × 5.44
Jun 28, 2015 = × × × × 5.61
Mar 29, 2015 = × × × × 5.03

Based on: 10-Q (filing date: 2020-08-06), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-11-07), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-16), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2020 is the decrease in efficiency measured by asset turnover ratio.


Two-Component Disaggregation of ROA

Zoetis Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
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 12.96% = 23.76% × 0.55
Jun 30, 2019 12.52% = 22.74% × 0.55
Mar 31, 2019 12.75% = 23.47% × 0.54
Dec 31, 2018 13.25% = 24.52% × 0.54
Sep 30, 2018 11.13% = 20.35% × 0.55
Jun 30, 2018 12.96% = 19.95% × 0.65
Mar 31, 2018 11.25% = 17.97% × 0.63
Dec 31, 2017 10.06% = 16.28% × 0.62
Oct 1, 2017 10.09% = 18.29% × 0.55
Jul 2, 2017 11.25% = 17.50% × 0.64
Apr 2, 2017 11.18% = 17.25% × 0.65
Dec 31, 2016 10.73% = 16.80% × 0.64
Oct 2, 2016 8.93% = 14.10% × 0.63
Jul 3, 2016 8.50% = 13.15% × 0.65
Apr 3, 2016 5.07% = 7.83% × 0.65
Dec 31, 2015 4.28% = 7.11% × 0.60
Sep 27, 2015 = ×
Jun 28, 2015 = ×
Mar 29, 2015 = ×

Based on: 10-Q (filing date: 2020-08-06), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-11-07), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-16), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2020 is the decrease in asset turnover ratio.


Four-Component Disaggregation of ROA

Zoetis Inc., decomposition of ROA (quarterly data)

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
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 12.96% = 0.82 × 0.89 × 32.65% × 0.55
Jun 30, 2019 12.52% = 0.82 × 0.88 × 31.36% × 0.55
Mar 31, 2019 12.75% = 0.84 × 0.89 × 31.64% × 0.54
Dec 31, 2018 13.25% = 0.84 × 0.89 × 32.62% × 0.54
Sep 30, 2018 11.13% = 0.68 × 0.90 × 33.28% × 0.55
Jun 30, 2018 12.96% = 0.65 × 0.90 × 33.82% × 0.65
Mar 31, 2018 11.25% = 0.61 × 0.90 × 32.91% × 0.63
Dec 31, 2017 10.06% = 0.57 × 0.90 × 32.07% × 0.62
Oct 1, 2017 10.09% = 0.71 × 0.89 × 29.14% × 0.55
Jul 2, 2017 11.25% = 0.70 × 0.88 × 28.12% × 0.64
Apr 2, 2017 11.18% = 0.69 × 0.88 × 28.20% × 0.65
Dec 31, 2016 10.73% = 0.67 × 0.88 × 28.56% × 0.64
Oct 2, 2016 8.93% = 0.64 × 0.87 × 25.24% × 0.63
Jul 3, 2016 8.50% = 0.63 × 0.87 × 23.84% × 0.65
Apr 3, 2016 5.07% = 0.58 × 0.82 × 16.29% × 0.65
Dec 31, 2015 4.28% = 0.62 × 0.81 × 14.04% × 0.60
Sep 27, 2015 = × × ×
Jun 28, 2015 = × × ×
Mar 29, 2015 = × × ×

Based on: 10-Q (filing date: 2020-08-06), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-11-07), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-16), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

The primary reason for the decrease in return on assets ratio (ROA) over Q2 2020 is the decrease in efficiency measured by asset turnover ratio.


Disaggregation of Net Profit Margin

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

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
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 23.76% = 0.82 × 0.89 × 32.65%
Jun 30, 2019 22.74% = 0.82 × 0.88 × 31.36%
Mar 31, 2019 23.47% = 0.84 × 0.89 × 31.64%
Dec 31, 2018 24.52% = 0.84 × 0.89 × 32.62%
Sep 30, 2018 20.35% = 0.68 × 0.90 × 33.28%
Jun 30, 2018 19.95% = 0.65 × 0.90 × 33.82%
Mar 31, 2018 17.97% = 0.61 × 0.90 × 32.91%
Dec 31, 2017 16.28% = 0.57 × 0.90 × 32.07%
Oct 1, 2017 18.29% = 0.71 × 0.89 × 29.14%
Jul 2, 2017 17.50% = 0.70 × 0.88 × 28.12%
Apr 2, 2017 17.25% = 0.69 × 0.88 × 28.20%
Dec 31, 2016 16.80% = 0.67 × 0.88 × 28.56%
Oct 2, 2016 14.10% = 0.64 × 0.87 × 25.24%
Jul 3, 2016 13.15% = 0.63 × 0.87 × 23.84%
Apr 3, 2016 7.83% = 0.58 × 0.82 × 16.29%
Dec 31, 2015 7.11% = 0.62 × 0.81 × 14.04%
Sep 27, 2015 = × ×
Jun 28, 2015 = × ×
Mar 29, 2015 = × ×

Based on: 10-Q (filing date: 2020-08-06), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-11-07), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-16), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

The primary reason for the increase in net profit margin ratio over Q2 2020 is the increase in operating profitability measured by EBIT margin ratio.