Analysis of Geographic Areas
Zoetis Inc. operates in 2 regions: United States (U.S.) and International.
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Area Profit Margin
Zoetis Inc., profit margin by geographic area
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States (U.S.) | |||||
| International |
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).
- United States (U.S.) Profit Margin
- Over the period from the end of 2019 to the end of 2023, the profit margin in the U.S. exhibited a relatively stable trend with minor fluctuations. Starting at 62.6% in 2019, it increased slightly each year, peaking at 64.06% by the end of 2022. However, there was a decrease to 62.85% in 2023, indicating a modest decline from the previous year. Despite this drop, the margin in 2023 remained higher than the initial value in 2019, suggesting an overall positive but moderated trend in profitability within the U.S. market.
- International Profit Margin
- The international profit margin demonstrated a steady upward trajectory from 2019 through 2022. Beginning at 50.03% in 2019, it showed consistent year-on-year growth, reaching its highest point at 54.06% in 2022. However, this was followed by a reduction to 52.08% in 2023. Although this decline represents a pullback from the peak, the international margin in 2023 remains substantially above the 2019 level, indicating improved profitability in international operations over the five-year period despite some volatility at the end.
- Comparative Analysis and Insights
- The U.S. consistently maintained a significantly higher profit margin compared to international markets throughout the observed period. Both regions experienced maximum profitability in 2022 before tapering off in 2023. The declines in 2023 could suggest external pressures or operational challenges impacting margins across geographic areas. Nonetheless, the overall upward trends from 2019 to 2022 reflect effective margin management and profitability improvements. The slight downturn in 2023 warrants attention for potential corrective actions or strategic adjustments to sustain growth momentum.
Area Profit Margin: United States (U.S.)
Zoetis Inc.; United States (U.S.); area profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Earnings | |||||
| Revenue | |||||
| Area Profitability Ratio | |||||
| Area profit margin1 | |||||
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).
1 2023 Calculation
Area profit margin = 100 × Earnings ÷ Revenue
= 100 × ÷ =
- Earnings
- The earnings exhibited a consistent upward trend over the five-year period. Starting at 2,005 million US dollars in 2019, earnings increased each year, reaching 2,863 million US dollars by the end of 2023. This represents an overall growth of approximately 42.8% from 2019 to 2023, indicating strong profitability improvements.
- Revenue
- Revenue demonstrated steady growth throughout the analyzed period. It rose from 3,203 million US dollars in 2019 to 4,555 million US dollars in 2023, marking an increase of around 42.2%. The annual increments were consistent, suggesting effective market expansion or sales volume growth in the U.S. geographic area.
- Area Profit Margin
- The area profit margin showed a generally positive trend from 62.6% in 2019 to a peak of 64.06% in 2022. However, in 2023, the margin slightly decreased to 62.85%. Despite this minor decline, the profit margin remained above the 2019 level, reflecting stable efficiency in profit generation relative to revenue during the period.
Area Profit Margin: International
Zoetis Inc.; International; area profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Earnings | |||||
| Revenue | |||||
| Area Profitability Ratio | |||||
| Area profit margin1 | |||||
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).
1 2023 Calculation
Area profit margin = 100 × Earnings ÷ Revenue
= 100 × ÷ =
- Earnings
- Earnings demonstrate a consistent upward trend over the five-year period, increasing from US$1,487 million in 2019 to US$2,037 million in 2023. The growth is steady each year, with the largest incremental rise observed between 2020 and 2021.
- Revenue
- Revenue also exhibits a positive trend, rising from US$2,972 million in 2019 to US$3,911 million in 2023. The most significant revenue increase occurs between 2020 and 2021, followed by smaller but continuous growth in subsequent years.
- Area Profit Margin
- The area profit margin shows an overall improvement from 50.03% in 2019 to a peak of 54.06% in 2022. However, there is a slight decline to 52.08% in 2023, indicating some compression in profitability despite increasing earnings and revenue.
- Summary
- Overall, the financial data reflect solid growth in both earnings and revenue within the "International" geographic area. Profit margins improved significantly through 2022, contributing to enhanced profitability, though the slight margin contraction in 2023 suggests emerging pressures on cost or pricing that may warrant further investigation. The consistency of growth in earnings relative to revenue underscores effective management of operational efficiency during the period observed.
Area Return on Assets (Area ROA)
Zoetis Inc., ROA by geographic area
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States (U.S.) | |||||
| International |
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).
The annual Return on Assets (ROA) data for the geographic areas reveals distinct trends for both the United States and International segments over the five-year period.
- United States (U.S.)
- The ROA in the U.S. shows a generally decreasing trend from 2019 to 2023. It started at 149.4% in 2019, experienced a slight increase in 2020 and 2021 reaching a peak of 156.84% in 2021, but then declined notably in the subsequent two years, finishing at 136.85% in 2023. This indicates a weakening in asset efficiency or profitability within the U.S. operations towards the end of the period analyzed.
- International
- The International segment ROA displayed more volatility compared to the U.S. The value initially peaked at 248.66% in 2019, followed by a marked decrease to 216.06% in 2020. This was succeeded by a rebound to 248.47% in 2021, nearly returning to the initial high. However, the trend reversed sharply afterwards, with ROA dropping to 213.29% in 2022 and further declining to 183.18% in 2023. Despite the drop, the international ROA values remain consistently higher than those in the U.S., though the downward trend in the last two years suggests challenges impacting the asset returns in international markets.
Overall, the data suggest that while international operations have yielded higher ROA compared to the U.S., both regions have demonstrated a decline in asset returns in 2022 and 2023. This could indicate emerging operational or market difficulties affecting profitability and asset utilization efficiency in recent years.
Area ROA: United States (U.S.)
Zoetis Inc.; United States (U.S.); area ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Earnings | |||||
| Property, plant and equipment, less accumulated depreciation | |||||
| Area Profitability Ratio | |||||
| Area ROA1 | |||||
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).
1 2023 Calculation
Area ROA = 100 × Earnings ÷ Property, plant and equipment, less accumulated depreciation
= 100 × ÷ =
- Earnings
- The earnings in the United States geographic area have shown a consistent upward trend over the five-year period. Beginning at 2005 million USD in 2019, earnings increased each year, reaching 2863 million USD in 2023. The increase from 2019 to 2023 represents a total growth of approximately 42.8%. Notable is the steady annual increase, suggesting sustained profitability improvements in this region.
- Property, Plant, and Equipment (Net)
- The net value of property, plant, and equipment also demonstrates a consistent growth pattern over the same timeframe. Starting at 1342 million USD in 2019, this value rose annually to reach 2092 million USD in 2023. This represents a cumulative increase of about 55.9%, indicating ongoing investment in fixed assets within the U.S. geographic area. The steady increase may reflect expansion, modernization efforts, or capacity enhancement in operations.
- Area Return on Assets (ROA)
- Return on assets (ROA) in the U.S. area exhibited a generally high but somewhat fluctuating trend. ROA started at 149.4% in 2019 and reached a peak of 156.84% in 2021. After this peak, it slightly declined to 151.81% in 2022 and further dropped to 136.85% in 2023. Despite this decline in the last two years, the ROA remains significantly high, implying effective utilization of assets to generate earnings. The reduction after 2021 could indicate either increased asset base impacting efficiency metrics or changes in profitability relative to asset size.
- Summary
- Overall, the financial data reveals a strong growth trajectory in earnings and asset base within the U.S. geographic segment, accompanied by a very high but slightly declining return on assets in recent years. The company's investments in property and equipment are substantial, potentially supporting further earnings growth. The declining ROA from 2021 onward suggests a need to monitor asset utilization efficiency despite ongoing profit expansion.
Area ROA: International
Zoetis Inc.; International; area ROA calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Earnings | |||||
| Property, plant and equipment, less accumulated depreciation | |||||
| Area Profitability Ratio | |||||
| Area ROA1 | |||||
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).
1 2023 Calculation
Area ROA = 100 × Earnings ÷ Property, plant and equipment, less accumulated depreciation
= 100 × ÷ =
- Earnings
- Earnings exhibited a general upward trend over the five-year period. Beginning at 1487 million US dollars in 2019, earnings increased steadily each year, reaching 2037 million US dollars by 2023. The most pronounced growth occurred between 2020 and 2021, where earnings rose from 1547 to 1948 million US dollars, indicating a significant improvement in profitability during that interval. The growth rate slowed mildly in subsequent years but continued on a positive trajectory.
- Property, Plant and Equipment (Net of Accumulated Depreciation)
- The value of property, plant, and equipment less accumulated depreciation consistently grew annually. Starting at 598 million US dollars in 2019, the net book value increased each year to reach 1112 million US dollars in 2023. This represents nearly a doubling of net fixed assets over the period, indicative of ongoing investments and capital expansion in the geographic area. The most notable increases occurred between 2021 and 2023, suggesting intensified capital expenditure or acquisition of new assets.
- Area Return on Assets (ROA)
- The area ROA showed a declining trend from 2019 to 2023 despite the rise in earnings and asset base. Initially very high at 248.66% in 2019, it dropped to 183.18% by 2023. This decline reflects a decreasing efficiency in asset utilization or profitability margin relative to assets invested. The ROA fluctuated with intermittent recoveries, such as the rebound seen in 2021, but overall there was a consistent downward trend. This suggests that while earnings and assets increased, the rate of return on those assets diminished which could imply rising costs, increased asset base not yet fully profitable, or other operational dynamics affecting efficiency.
Area Asset Turnover
Zoetis Inc., asset turnover by geographic area
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States (U.S.) | |||||
| International |
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).
- United States (U.S.) Asset Turnover
- The asset turnover ratio in the U.S. remained stable at 2.39 for the years ending 2019 and 2020. It experienced a slight increase to 2.47 in 2021, followed by a decline to 2.37 in 2022, and a further decrease to 2.18 in 2023. This indicates a modest improvement in asset utilization efficiency in 2021, but a subsequent downward trend in the following two years.
- International Asset Turnover
- The international asset turnover ratio exhibited a decreasing trend over the period. Starting from 4.97 in 2019, it dropped significantly to 4.24 in 2020. There was a partial recovery to 4.66 in 2021, but the ratio declined again in 2022 to 3.95, and further to 3.52 in 2023. Despite some fluctuations, the overall trend points to reduced efficiency in asset turnover internationally.
- Comparative Insights
- Throughout the observed years, the international asset turnover ratio consistently exceeded the U.S. ratio, although both regions showed weakening efficiency from 2021 onwards. The international segment experienced more pronounced volatility and overall decline, suggesting potential challenges in maintaining asset utilization internationally. Meanwhile, the U.S. market demonstrated a relatively stable but gradually declining trend post-2021.
Area Asset Turnover: United States (U.S.)
Zoetis Inc.; United States (U.S.); area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | |||||
| Property, plant and equipment, less accumulated depreciation | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2023 Calculation
Area asset turnover = Revenue ÷ Property, plant and equipment, less accumulated depreciation
= ÷ =
- Revenue
- Revenue exhibited a consistent upward trajectory over the five-year period, increasing from $3,203 million at the end of 2019 to $4,555 million by the end of 2023. This represents a cumulative growth of approximately 42%, with steady year-over-year gains reflecting expanding sales or market presence in the United States geographic area.
- Property, Plant and Equipment (net)
- Net property, plant, and equipment assets increased notably each year, rising from $1,342 million in 2019 to $2,092 million in 2023. The growth suggests ongoing capital investment, asset acquisition, or improvements to production capacity. The asset base expanded by more than 55% over the period, indicating a potential focus on long-term operational infrastructure development.
- Area Asset Turnover
- The area asset turnover ratio, measuring revenue generated per dollar of net fixed assets, remained relatively stable from 2019 to 2021, with ratios of 2.39, 2.39, and 2.47, respectively. However, from 2022 onwards, the ratio declined to 2.37 in 2022 and further to 2.18 in 2023. This downward trend suggests that while assets were increasing in value, revenue growth did not keep pace proportionally, indicating a decreasing efficiency in the use of property, plant, and equipment within this geographic segment.
- Overall Insights
- The data reflects sustained revenue growth accompanied by substantial investment in fixed assets. However, the declining asset turnover ratio in the latter years signals diminishing returns on these investments or potential underutilization of assets. This pattern might warrant a closer examination of operational efficiency, asset utilization strategies, or market conditions impacting sales relative to asset expansion.
Area Asset Turnover: International
Zoetis Inc.; International; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | |||||
| Property, plant and equipment, less accumulated depreciation | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2023 Calculation
Area asset turnover = Revenue ÷ Property, plant and equipment, less accumulated depreciation
= ÷ =
- Revenue Trends
- Revenue in the International geographic area exhibited a consistent upward trend over the analyzed period. Starting at 2,972 million US dollars in 2019, revenue gradually increased each year, reaching 3,911 million US dollars by the end of 2023. This reflects steady growth with the most notable increment occurring between 2020 and 2021.
- Property, Plant, and Equipment (Net)
- The net value of property, plant, and equipment in this area showed a clear increasing pattern. Beginning at 598 million US dollars in 2019, there was a continuous rise through each year, culminating at 1,112 million US dollars in 2023. This near doubling over five years suggests significant investment and asset expansion in the international operations.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which reflects the efficiency in using the area's assets to generate revenue, demonstrated a declining trend. Starting at 4.97 in 2019, the ratio decreased to 3.52 by the end of 2023. Despite the growth in revenue, the asset turnover declined, indicating that asset base expansion outpaced revenue growth, potentially pointing to lower operational efficiency or a strategic asset accumulation phase.
- Overall Insights
- While revenue growth in the International segment has been robust and consistent, the concurrent increase in property, plant, and equipment has resulted in a reduced asset turnover ratio. This suggests that the company is investing heavily in its fixed assets, potentially preparing for future expansion or capacity enhancement. However, from an efficiency standpoint, the reduced turnover ratio merits attention, as it may impact return on assets if revenue does not keep pace with asset growth.
Revenue
Zoetis Inc., revenue by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States (U.S.) | |||||
| International | |||||
| Total |
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).
The revenue data over the five-year period displays a continuous upward trend across all geographic areas evaluated. Both the United States and International segments exhibit consistent growth year over year, contributing to an overall increase in total revenue.
- United States Revenue
- The United States segment shows steady growth throughout the period, starting at US$3,203 million in 2019 and increasing to US$4,555 million by 2023. This represents an aggregate increase of approximately 42.3% over five years. The annual increments range from moderate to strong, with the largest absolute growth occurring between 2020 and 2021.
- International Revenue
- The International segment also evidences a positive growth trajectory, rising from US$2,972 million in 2019 to US$3,911 million in 2023. This equates to an approximate increase of 31.6% over the period. Growth is somewhat less pronounced than in the U.S. market but remains steady with a notable acceleration between 2020 and 2021.
- Total Revenue
- Total revenue, combining both geographic segments, increased from US$6,175 million in 2019 to US$8,466 million in 2023. This represents an overall growth of approximately 37%. The largest contribution to total revenue growth comes from the U.S. market, although the international market’s steady gains have also played a significant role.
- Trend Insights
- The data suggests that both markets experienced consistent expansion, with the U.S. segment growing at a faster rate compared to the International segment. The progression indicates a strong and stable business development in both regions. The year 2021 appears to be a particularly strong year for revenue increases in both regions, possibly reflecting a rebound or market growth during that period. There is no indication of volatility or decline, implying effective market penetration and demand maintenance globally.
Earnings
Zoetis Inc., earnings by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States (U.S.) | |||||
| International | |||||
| Total |
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).
The earnings data over the five-year period from 2019 to 2023 reveal consistent growth trends across both the United States and international geographic segments. The total earnings reflect this overall positive trajectory.
- United States Earnings
- The earnings in the U.S. have steadily increased each year, starting from 2,005 million US dollars in 2019 and reaching 2,863 million US dollars in 2023. This represents a cumulative growth of approximately 42.8% over the five-year period. The year-on-year increases are consistent, indicating stable expansion in the domestic market.
- International Earnings
- International earnings also show a steady upward trend, albeit at a slightly different pace. Beginning at 1,487 million US dollars in 2019, international earnings rose to 2,037 million US dollars by 2023. This reflects a total increase of around 37.0% during the period. While growth is consistent, the increments show a slightly sharper increase between 2020 and 2021 compared to other years, suggesting a possible acceleration in international market penetration or recovery following external factors affecting prior years.
- Total Earnings
- The aggregate earnings from both regions exhibit continuous growth, increasing from 3,492 million US dollars in 2019 to 4,900 million US dollars in 2023. This amounts to an overall growth of roughly 40.3%. The total earnings progression closely mirrors the growth patterns observed in domestic and international segments, confirming that expansion in both markets contributes evenly to the company’s overall financial performance.
In summary, the data demonstrate robust growth across all geographic areas, with the U.S. market maintaining a slightly higher earnings base and growth rate compared to international markets. Both segments contribute meaningfully to the consistent upward trend in total earnings over the analyzed period.
Property, plant and equipment, less accumulated depreciation
Zoetis Inc., property, plant and equipment, less accumulated depreciation by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States (U.S.) | |||||
| International | |||||
| Total |
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).
- United States (U.S.)
- The net value of property, plant, and equipment in the United States demonstrates a consistent upward trend from 2019 to 2023. Beginning at $1,342 million in 2019, the figure increased steadily each year, reaching $2,092 million by the end of 2023. This represents a growth of approximately 56% over the five-year period, suggesting ongoing investment or acquisition of fixed assets in the U.S. market.
- International
- International property, plant, and equipment, net of accumulated depreciation, also shows continuous growth across the observed period. Starting at $598 million in 2019, the value rose annually to reach $1,112 million in 2023. This reflects an increase of about 86%, indicating a relatively higher growth rate internationally compared to the U.S. assets, which may point toward expanding operational capacity or capital expenditure outside the U.S.
- Total
- The aggregate net value of property, plant, and equipment combines the trends seen in the U.S. and international figures, increasing from $1,940 million in 2019 to $3,204 million in 2023. This total growth of roughly 65% over the five years underscores a consistent and balanced increase in the company's fixed asset base globally with sustained capital commitment in both regions.
- Overall Insights
- The data reflects a deliberate and sustained capital investment strategy resulting in the steady expansion of net property, plant, and equipment values over the five-year span. The growth rate is higher internationally than domestically, which might suggest increased focus or opportunities being leveraged outside the U.S. The absence of any declining figures indicates stable asset management without significant disposals or impairment losses impacting the net asset values in either region.