Detailed financial statements for Zimmer Biomet Holdings, Inc. (ZBH): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Zimmer Biomet Holdings, Inc. engages in the design, manufacture, and marketing of orthopedic reconstructive products. The firm also offers sports medicine, biologics, extremities, and trauma products, spine, craniomaxillofacial, and thoracic products, office-based technologies, dental implants, and related surgical products. It operates through the following geographical segments: Americas, Europe Middle East and Africa, and Asia Pacific.
Analysis Summary
Zimmer Biomet Holdings, Inc. reported revenue of $8.23B in the most recent fiscal year, growing at a 5-year CAGR of 6.1%.
Trailing-twelve-month margins: gross margin 69.9%, operating margin 15.7%, net margin 9.5%. Free cash flow grew at 6.2% CAGR over 5 years.
At the current price of $91.57, ZBH trades at a P/E of 21.48 and an ROE of 6.36%. Market capitalisation stands at $17.7B, placing it among large-cap names.
Balance sheet quality for ZBH: current ratio of 2.0, net debt of $6.93B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $1.47B represents 209% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $7.67B | $7.80B | $7.93B | $7.98B | $6.13B | $6.83B | $6.94B | $7.39B | $7.68B | $8.23B |
| Cost of Revenue | $2.38B | $2.13B | $2.27B | $2.25B | $1.82B | $1.96B | $2.02B | $2.08B | $2.19B | $3.16B |
| Gross Profit | $5.29B | $5.67B | $5.66B | $5.73B | $4.30B | $4.87B | $4.92B | $5.31B | $5.49B | $5.07B |
| Research & Development | $365.6M | $369.9M | $391.7M | $449.3M | $322.8M | $435.8M | $406.0M | $458.7M | $437.4M | $458.5M |
| Selling, General & Admin | $2.94B | $3.10B | $3.38B | $3.34B | $2.71B | $2.84B | $2.76B | $2.84B | $2.93B | $3.25B |
| Operating Expenses | $4.47B | $4.87B | $5.63B | $4.59B | $4.22B | $4.01B | $4.22B | $4.03B | $4.20B | $3.71B |
| Operating Income | $821.1M | $799.3M | $33.8M | $1.14B | $83.1M | $860.3M | $696.3M | $1.28B | $1.29B | $1.36B |
| EBITDA | $1.79B | $1.85B | $1.06B | $2.14B | $1.01B | $1.65B | $1.49B | $2.22B | $2.25B | $2.22B |
| Interest Expense | $355.0M | $325.3M | $289.3M | $226.9M | $212.1M | $208.4M | $164.8M | $201.2M | $218.0M | $292.8M |
| Pre-tax Income | $399.6M | $464.6M | -$271.1M | $905.8M | -$105.2M | $499.0M | $403.5M | $1.07B | $1.04B | $830.8M |
| Income Tax | $95.0M | -$1.35B | $108.2M | -$225.7M | -$96.0M | $53.5M | $112.3M | $42.2M | $131.4M | $125.7M |
| Net Income | $305.9M | $1.81B | -$379.2M | $1.13B | -$138.9M | $401.6M | $231.4M | $1.02B | $903.8M | $705.2M |
| EPS | $1.51 | $9.11 | $-1.86 | $5.52 | $-0.67 | $1.93 | $1.10 | $4.91 | $4.45 | $3.56 |
| EPS (Diluted) | $1.50 | $9.03 | $-1.86 | $5.47 | $-0.67 | $1.91 | $1.10 | $4.88 | $4.43 | $3.55 |
| Shares Outstanding (Diluted) | $202.4M | $203.7M | $203.5M | $206.7M | $207.0M | $210.4M | $210.3M | $209.7M | $203.9M | $198.7M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $2.00B | $2.24B | $2.09B | $2.18B |
| Gross Profit | $1.44B | $1.45B | $1.51B | $1.54B |
| Operating Income | $351.3M | $287.8M | $373.2M | $326.1M |
| EBITDA | $638.2M | $453.9M | $538.3M | $328.0M |
| Net Income | $230.9M | $139.5M | $238.1M | $198.3M |
| EPS | $1.17 | $0.71 | $1.22 | $1.03 |
| EPS (Diluted) | $1.16 | $0.70 | $1.22 | $1.03 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $634.1M | $524.4M | $542.8M | $617.9M | $802.1M | $378.1M | $375.7M | $415.8M | $525.5M | $591.9M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $1.60B | $1.54B | $1.28B | $1.36B | $1.45B | $1.26B | $1.38B | $1.44B | $1.48B | $1.70B |
| Inventory | $1.97B | $2.08B | $2.26B | $2.38B | $2.45B | $2.15B | $2.15B | $2.39B | $2.24B | $2.29B |
| Total Current Assets | $4.67B | $4.58B | $4.43B | $4.72B | $5.08B | $4.88B | $4.43B | $4.61B | $4.67B | $5.12B |
| Property, Plant & Equipment | $2.04B | $2.04B | $2.02B | $2.08B | $2.05B | $1.84B | $1.87B | $2.06B | $2.05B | $2.21B |
| Goodwill | $10.64B | $10.67B | $9.59B | $9.60B | $9.26B | $8.92B | $8.58B | $8.82B | $8.95B | $9.95B |
| Intangible Assets | $8.79B | $8.35B | $7.68B | $7.26B | $7.06B | $5.53B | $5.06B | $4.86B | $4.60B | $4.72B |
| Total Assets | $26.68B | $26.01B | $24.13B | $24.64B | $24.42B | $23.46B | $21.07B | $21.50B | $21.37B | $23.09B |
| Accounts Payable | $364.5M | $330.2M | $362.6M | $400.9M | $330.0M | $306.5M | $354.1M | $410.6M | $194.6M | $303.0M |
| Short-term Debt | $575.6M | $1.23B | $525.0M | $1.50B | $500.0M | $1.61B | $544.3M | $900.0M | $863.0M | $587.1M |
| Total Current Liabilities | $2.38B | $3.07B | $2.42B | $3.44B | $2.56B | $3.47B | $2.36B | $2.86B | $2.45B | $2.58B |
| Long-term Debt | $10.67B | $8.92B | $8.41B | $6.72B | $7.63B | $5.46B | $5.15B | $4.87B | $5.34B | $6.93B |
| Total Liabilities | $17.01B | $14.28B | $12.85B | $12.25B | $12.22B | $10.79B | $9.04B | $9.01B | $8.89B | $10.39B |
| Retained Earnings | $8.47B | $10.02B | $9.49B | $10.43B | $10.09B | $10.29B | $9.56B | $10.38B | $11.10B | $11.61B |
| Total Equity | $9.67B | $11.74B | $11.27B | $12.39B | $12.19B | $12.66B | $12.02B | $12.48B | $12.47B | $12.70B |
| Total Debt | $11.24B | $10.14B | $8.94B | $8.22B | $8.13B | $7.07B | $5.70B | $5.77B | $6.20B | $7.52B |
| Net Debt | $10.61B | $9.62B | $8.40B | $7.60B | $7.32B | $6.69B | $5.32B | $5.35B | $5.68B | $6.93B |
| Working Capital | $2.29B | $1.51B | $2.01B | $1.28B | $2.53B | $1.42B | $2.07B | $1.75B | $2.22B | $2.54B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $1.29B | $591.9M | $424.2M | $410.0M |
| Total Assets | $23.49B | $23.09B | $22.72B | $22.80B |
| Total Liabilities | $10.72B | $10.39B | $10.04B | $10.17B |
| Total Equity | $12.76B | $12.70B | $12.67B | $12.62B |
| Total Debt | $8.11B | $7.52B | $7.47B | $7.48B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | $304.6M | $1.81B | -$379.3M | $1.13B | -$9.2M | $445.5M | $291.2M | $1.03B | $905.2M | $705.1M |
| Depreciation & Amortization | $1.04B | $1.06B | $1.04B | $1.01B | $898.4M | $937.7M | $926.4M | $951.7M | $996.3M | $1.09B |
| Stock-based Compensation | $57.3M | $53.7M | $65.5M | $84.3M | $73.8M | $76.0M | $105.0M | $99.8M | $101.0M | $90.2M |
| Change in Working Capital | -$23.5M | $64.2M | $27.6M | -$167.5M | -$429.8M | -$134.2M | -$311.4M | -$396.2M | -$455.4M | -$104.9M |
| Operating Cash Flow | $1.63B | $1.58B | $1.75B | $1.59B | $1.20B | $1.50B | $1.28B | $1.58B | $1.50B | $1.70B |
| Capital Expenditure | -$184.7M | -$156.0M | -$162.7M | -$404.7M | -$111.9M | -$152.0M | -$217.6M | -$394.5M | -$356.8M | -$224.5M |
| Acquisitions | -$1.44B | -$4.0M | -$15.3M | -$37.1M | -$227.1M | 0 | -$99.8M | -$134.9M | -$276.3M | -$1.39B |
| Stock Repurchased | -$415.5M | 0 | 0 | 0 | 0 | 0 | -$126.4M | -$692.2M | -$868.0M | -$487.0M |
| Dividends Paid | -$188.4M | -$193.6M | -$195.2M | -$196.7M | -$198.5M | -$200.1M | -$201.2M | -$200.9M | -$196.0M | -$190.3M |
| Free Cash Flow | $1.45B | $1.43B | $1.58B | $1.18B | $1.09B | $1.35B | $1.07B | $1.19B | $1.14B | $1.47B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $418.7M | $517.3M | $359.4M | $447.8M |
| Capital Expenditure | $127.1M | $151.4M | -$75.3M | -$116.4M |
| Free Cash Flow | $545.8M | $668.7M | $284.1M | $331.4M |
| Dividends Paid | -$47.5M | -$47.5M | -$46.9M | -$46.5M |
| Stock-based Compensation | $25.3M | $24.1M | $24.2M | $24.6M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +1.8% | +1.7% | +0.6% | -23.2% | +11.4% | +1.6% | +6.5% | +3.8% | +7.2% | |
| Net Income Growth (YoY) | +492.9% | -120.9% | +398.4% | -112.3% | +389.1% | -42.4% | +342.5% | -11.7% | -22.0% | |
| EPS Growth (YoY) | +503.3% | -120.4% | +396.8% | -112.1% | +388.1% | -43.0% | +346.4% | -9.4% | -20.0% | |
| Shares Change (YoY) | +0.6% | -0.1% | +1.6% | +0.1% | +1.6% | -0.0% | -0.3% | -2.8% | -2.6% | |
| FCF Growth (YoY) | -1.5% | +11.1% | -25.5% | -7.5% | +23.3% | -20.8% | +11.2% | -3.7% | +28.9% | |
| Gross Margin | 68.9% | 72.7% | 71.4% | 71.8% | 70.2% | 71.3% | 70.9% | 71.8% | 71.5% | 61.6% |
| Operating Margin | 10.7% | 10.2% | 0.4% | 14.3% | 1.4% | 12.6% | 10.0% | 17.3% | 16.7% | 16.5% |
| EBITDA Margin | 23.4% | 23.7% | 13.3% | 26.8% | 16.4% | 24.1% | 21.5% | 30.0% | 29.3% | 26.9% |
| Net Margin | 4.0% | 23.2% | -4.8% | 14.2% | -2.3% | 5.9% | 3.3% | 13.8% | 11.8% | 8.6% |
| FCF Margin | 18.9% | 18.3% | 20.0% | 14.8% | 17.8% | 19.7% | 15.4% | 16.1% | 14.9% | 17.9% |
| Effective Tax Rate | 23.8% | -290.3% | -39.9% | -24.9% | 91.3% | 10.7% | 27.8% | 4.0% | 12.7% | 15.1% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $7.15 | $7.00 | $7.79 | $5.71 | $5.28 | $6.40 | $5.07 | $5.66 | $5.60 | $7.41 |
| Dividends Per Share | $0.93 | $0.95 | $0.96 | $0.95 | $0.96 | $0.95 | $0.96 | $0.96 | $0.96 | $0.96 |
| Shares Outstanding (Basic) | $200.0M | $201.9M | $203.5M | $205.1M | $207.0M | $208.6M | $209.6M | $208.7M | $203.1M | $198.0M |
What to look at in Healthcare / Pharma
The R&D pipeline is the invisible asset. Patents expiring = revenues evaporating. Look at innovation and cash flow.
- R&D / Revenue — Shows investment in future pipeline. Serious pharma reinvests 15-20%
- 5y EPS growth — After patent expirations, are they still growing?
- Gross margin — Branded pharma >70%. Generics much lower — defines the business type
- FCF / Net Income — Earnings quality — big pharma should convert >90%
- ROIC — Capital reinvested efficiently — key in pharma due to long R&D cycles
- Net debt / EBITDA — Pharma acquisitions pile up debt — watch the post-M&A picture
- P/E vs own 10y history — The best comparison is with its own history, not with peers
Profitability
| Return on Equity | 6.36% |
| Return on Invested Capital | 5.51% |
| Return on Assets | 3.54% |
| Gross Margin | 69.87% |
| Operating Margin | 15.73% |
| Net Margin | 9.48% |
Financial Health
| Debt / Equity | 0.59 |
| Current Ratio | 1.69 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 2.42 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | 66.30 | 12.85 | -54.10 | 26.31 | -223.12 | 63.85 | 115.91 | 24.79 | 23.74 | 25.26 |
| P/B | 2.07 | 2.01 | 1.82 | 2.40 | 2.54 | 2.03 | 2.22 | 2.04 | 1.72 | 1.40 |
| P/S | 2.61 | 3.03 | 2.58 | 3.73 | 5.05 | 3.77 | 3.85 | 3.43 | 2.79 | 2.16 |
| Gross Margin | 68.9% | 72.7% | 71.4% | 71.8% | 70.2% | 71.3% | 70.9% | 71.8% | 71.5% | 61.6% |
| Operating Margin | 10.7% | 10.2% | 0.4% | 14.3% | 1.4% | 12.6% | 10.0% | 17.3% | 16.7% | 16.5% |
| Net Margin | 4.0% | 23.2% | -4.8% | 14.2% | -2.3% | 5.9% | 3.3% | 13.8% | 11.8% | 8.6% |
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