Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
Zoetis Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 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).
- Net Fixed Asset Turnover
-
The net fixed asset turnover ratio shows a gradual decline over the analyzed periods. Starting at 3.21 in the first quarter of 2020, it peaked briefly at 3.26 in the third quarter of 2021 before continuously decreasing to 2.69 by the first quarter of 2024. This trend indicates a reducing efficiency in generating revenue from net fixed assets over time.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
-
This ratio mirrors the pattern observed in the net fixed asset turnover, starting at 2.94 in early 2020. It increased slightly up to 3.02 in late 2021 but then exhibited a steady decline to 2.51 by the first quarter of 2024. The inclusion of operating leases and right-of-use assets results in consistently lower turnover values compared to the standard net fixed asset turnover, reflecting the impact of capitalizing leases on asset base and turnover ratios.
- Total Asset Turnover
-
The total asset turnover ratio displays a generally positive trend, increasing from 0.55 in the first quarter of 2020 to 0.61 in the first quarter of 2024. While there are minor fluctuations, the steady increase suggests improving efficiency in utilizing total assets to generate revenues.
- Equity Turnover
-
The equity turnover ratio demonstrates a declining trend during the first half of the period, dropping from 2.30 in early 2020 to a low of 1.63 in the third quarter of 2021. Post this decline, the ratio recovers slightly, stabilizing around the 1.7 range towards the latest period. This pattern implies that the company’s revenue generation relative to shareholders' equity weakened initially but showed signs of stabilization in recent quarters.
Net Fixed Asset Turnover
Zoetis Inc., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Property, plant and equipment, less accumulated depreciation | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 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).
1 Q1 2024 Calculation
Net fixed asset turnover
= (RevenueQ1 2024
+ RevenueQ4 2023
+ RevenueQ3 2023
+ RevenueQ2 2023)
÷ Property, plant and equipment, less accumulated depreciation
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited a generally upward trajectory over the observed periods, increasing from 1,534 million USD in March 2020 to 2,190 million USD in March 2024. There were periodic fluctuations within quarters; for instance, revenue peaked at 2,180 million USD in June 2023 before slightly declining in subsequent quarters. The overall growth reflects consistent expansion in sales or service delivery over the four-year span.
- Property, Plant, and Equipment (Net)
- The net value of property, plant, and equipment showed a steady increase throughout the analyzed timeframe. Starting at 1,977 million USD in March 2020, it rose to 3,251 million USD by March 2024. This continuous rise suggests ongoing capital investment and asset accumulation, possibly to support increased operational capacity or modernization efforts. The trend is smooth and persistent without indications of significant asset disposals or impairments.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures revenue generated per unit of net fixed asset, displayed a declining trend from 3.21 in March 2020 to a low of 2.67 in December 2023, with a slight recovery to 2.69 by March 2024. This decreasing ratio indicates that revenue growth has not kept pace proportionally with the increase in net fixed assets, potentially signaling diminishing efficiency in asset utilization over time or the impact of new asset investments that have yet to fully generate returns.
- Overall Insights
- The data portrays a scenario of sustained revenue growth alongside significant capital investment in fixed assets. However, the declining net fixed asset turnover ratio suggests that the firm may be experiencing lower returns relative to its asset base expansion, indicating an area for potential operational focus. Continuous monitoring of asset utilization efficiency would be advisable to ensure that capital expenditures translate efficiently into revenue gains.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Zoetis Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Property, plant and equipment, less accumulated depreciation | |||||||||||||||||||||||
| Operating lease right of use assets | |||||||||||||||||||||||
| Property, plant and equipment, less accumulated depreciation (including operating lease, right-of-use asset) | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||
| Vertex Pharmaceuticals Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 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).
1 Q1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (RevenueQ1 2024
+ RevenueQ4 2023
+ RevenueQ3 2023
+ RevenueQ2 2023)
÷ Property, plant and equipment, less accumulated depreciation (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue showed a general upward trajectory over the observed period. Starting at $1,534 million in the first quarter of 2020, it increased steadily, reaching a peak of $2,213 million in the fourth quarter of 2023 before slightly declining to $2,190 million in the first quarter of 2024. Notable growth phases include the increments between mid-2022 and mid-2023, where revenue rose from $2,052 million to $2,180 million.
- Property, Plant, and Equipment (PP&E) Trends
- The net value of property, plant, and equipment, inclusive of operating leases and right-of-use assets, showed continuous growth throughout the period. Beginning at $2,159 million in the first quarter of 2020, this asset base expanded steadily to $3,476 million by the first quarter of 2024. This consistent increase suggests ongoing capital investment activities and potential expansion of operational capacity.
- Net Fixed Asset Turnover Analysis
- The net fixed asset turnover ratio demonstrated a decreasing trend over the timeframe. Starting at 2.94 in the first quarter of 2020, the ratio gradually declined to 2.51 by the first quarter of 2024. This decline indicates that revenue generation relative to the net fixed asset base was becoming less intensive over time, which could imply increased asset investment outpacing revenue growth or diminishing efficiency in asset utilization.
- Summary of Financial Patterns
- The data reflects a company experiencing steady revenue growth alongside significant capital asset accumulation. However, the decreasing net fixed asset turnover ratio suggests that the expansion in the asset base may not be fully translating into proportional revenue increases. This could point to strategic investments with delayed returns or a shift in operational dynamics affecting asset productivity.
Total Asset Turnover
Zoetis Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 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).
1 Q1 2024 Calculation
Total asset turnover
= (RevenueQ1 2024
+ RevenueQ4 2023
+ RevenueQ3 2023
+ RevenueQ2 2023)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited a general upward trajectory over the period analyzed. Starting from approximately 1,534 million USD in the first quarter of 2020, revenue increased steadily with some fluctuations, reaching a peak above 2,200 million USD by the end of the first quarter of 2024. Notable increments occurred especially between mid-2022 and mid-2023, where revenue surged from 2,000 million USD to around 2,180 million USD, followed by a slight decrease and stabilization near 2,190 million USD in early 2024. This pattern indicates consistent growth in sales or service income with occasional minor dips toward the end of the timeline.
- Total Assets Development
- Total assets displayed a more variable pattern without a clear linear trend. Starting close to 11,528 million USD, the assets rose steeply through the middle of 2020 to approximately 13,700-14,000 million USD, then stabilized around that range with some fluctuations. Noteworthy is a spike at the end of 2022, reaching nearly 14,925 million USD, following which the asset base slightly contracted to approximately 14,300 million USD by March 2024. Overall, total assets exhibited moderate growth with periodic expansions and contractions, possibly reflecting strategic asset acquisitions and disposals or valuation adjustments.
- Total Asset Turnover Ratio
- The total asset turnover ratio showed a gradual improvement over the timeframe, increasing from 0.55 to 0.61. This ratio, representing the efficiency with which the company utilized its assets to generate revenue, indicates an enhancing operational performance. Early 2020 saw ratios near 0.5, which climbed consistently, peaking around 0.6 starting in 2022 and maintaining near that level through to 2024. This improvement suggests better asset utilization or increased revenue generation relative to asset size, highlighting operational efficiency gains.
- Overall Insights
- The combination of rising revenue and improved asset turnover indicates a strengthening business performance. Despite the fluctuations in total assets, the company managed to enhance its revenue-generating capacity relative to asset size, implying a strategic focus on efficient asset management. Temporary dips in revenue toward the end of certain periods were not accompanied by reductions in asset efficiency, suggesting resilience in operational effectiveness. The data reflects balanced growth with disciplined asset deployment to support expanding sales.
Equity Turnover
Zoetis Inc., equity turnover calculation (quarterly data)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Total Zoetis Inc. equity | |||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-31), 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).
1 Q1 2024 Calculation
Equity turnover
= (RevenueQ1 2024
+ RevenueQ4 2023
+ RevenueQ3 2023
+ RevenueQ2 2023)
÷ Total Zoetis Inc. equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenue Trend Analysis
- The revenue shows an overall upward trend from March 2020 to March 2024. Starting at $1,534 million in March 2020, it gradually increased with some quarterly fluctuations, reaching a peak of $2,213 million by December 2023. The revenue slightly decreased to $2,190 million in March 2024, but this figure remains substantially higher compared to earlier years. This pattern indicates consistent growth in the company's sales over the four-year period, with occasional minor variations.
- Total Equity Trend Analysis
- Total equity exhibited steady growth from $2,753 million in March 2020 to $5,058 million by March 2024, effectively nearly doubling over four years. The trend includes some minor declines in specific quarters, such as a dip from $4,679 million in September 2021 to $4,543 million in December 2021, and from $4,663 million in September 2022 to $4,405 million in December 2022. Despite these short-term decreases, the overall trajectory remains upward, reflecting increasing shareholder equity and potentially accumulated retained earnings or capital infusions.
- Equity Turnover Ratio Analysis
- The equity turnover ratio generally decreased from 2.3 in March 2020 to lower levels around 1.7 by 2024, indicating a reduction in revenue generated per unit of equity. This decline was gradual with minor fluctuations, hitting the lowest point around 1.63 in September 2021. Post-2021, the ratio slightly recovered to approximately 1.73 by March 2024. The fall in equity turnover ratio suggests that while the company's equity base expanded significantly, revenue growth did not keep pace proportionally, which may imply less efficient use of equity or changes in business dynamics requiring more capital investment.
- Overall Insights
- Over the analyzed period, revenue growth is evident and steady, demonstrating sustained business expansion. The strong increase in total equity suggests enhanced financial strength and possibly increased capital availability. However, the decreasing trend in equity turnover indicates a deceleration in efficiency regarding the use of equity to generate revenue. This might warrant further examination of capital allocation and operational efficiency going forward.