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Zoetis ZTS Return on invested capital

Return on invested capital at other companies

Merck & Co. logo
Merck & Co.MRK
10.8%-12.8pp
Idexx Laboratories logo
Idexx LaboratoriesIDXX
56.9%+11.4pp
Elanco Animal Health Inc. logo
Elanco Animal Health Inc.ELAN
0.4%
Revvity logo
RevvityRVTY
3.6%+0.5pp
Tractor Supply Company logo
Tractor Supply CompanyTSCO
13.8%-1.6pp
Chewy logo
ChewyCHWY
65.1%-11.2pp

Other financials

Income statement

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Revenue$2.3B+2.9%
Gross profit$1.6B+2.6%
Net income$601.0M-0.2%
EPS (diluted)$1.42+6.0%

Balance sheet

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Cash & equivalents$1.9B+8.9%
Total debt$10.0B+48.0%
Total equity$3.2B-30.5%
Total assets$15.2B+7.5%

Cash flow

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Operating cash flow$401.0M-22.1%
CapEx$110.0M-38.2%
Free cash flow$291.0M-13.6%

Valuation

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Market cap$33B-32.3%
Enterprise value$41.04B-26.4%
P/E12.5×-7.1×
P/S3.5×-1.8×

Profitability

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Gross margin71.8%+0.8pp
Net margin27.8%+0.9pp
FCF margin23.5%0.0pp

Returns & leverage

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Return on equity67%+15.8pp
Debt / equity3.1×+1.6×
Current ratio3.2×+1.4×

Where this comes from

Calculated from Zoetis’s reported figures.

Based on trailing twelve months.

The official record: Zoetis’s 10-Q, filed May 7, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Zoetis's return on invested capital?
Zoetis (ZTS) reported return on invested capital of 27% in Q1 2026.
How has Zoetis's return on invested capital changed year-over-year?
Zoetis's return on invested capital decreased by 1.5% year-over-year, from 27.5% to 27%.
What is the long-term trend for Zoetis's return on invested capital?
Over 5 years (2020 to 2025), Zoetis's return on invested capital has grown at a 3.2% compound annual growth rate (CAGR), from 26.3% to 30.7%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.