Zoetis Inc (ZTS)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.29	1.95	2.01	2.39	2.51
DOH	days	159.32	187.55	181.53	152.98	145.57

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.29
= 159.32

The days of inventory on hand (DOH) for Zoetis Inc have shown a fluctuating trend over the past five years. Starting at 145.57 days as of December 31, 2020, the DOH increased to 152.98 days by the end of 2021. Subsequently, there was a notable jump in DOH to 181.53 days by December 31, 2022, indicating a potential buildup of inventory.

The trend continued with a further increase to 187.55 days by the end of 2023, suggesting a longer time taken to sell off inventory. However, there was a slight improvement in efficiency as of December 31, 2024, with the DOH decreasing to 159.32 days. This could be a positive sign indicating better inventory management practices or adjustments to address the high inventory levels in the previous year.

Overall, Zoetis Inc should closely monitor its inventory turnover and take necessary steps to optimize inventory levels to maintain a healthy balance between stocking enough inventory to meet demand and avoiding excess inventory buildup that could tie up cash flow.