Zoetis Inc (ZTS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,283,000 | 4,990,000 | 4,715,000 | 4,588,000 | 4,082,000 |
| Inventory | US$ in thousands | 2,306,000 | 2,564,000 | 2,345,000 | 1,923,000 | 1,628,000 |
| Inventory turnover | 2.29 | 1.95 | 2.01 | 2.39 | 2.51 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,283,000K ÷ $2,306,000K
= 2.29
To analyze Zoetis Inc's inventory turnover over the years, we observe a slight decrease from 2.51 in December 31, 2020, to 2.39 in December 31, 2021. This decline continues into 2022 and 2023, reaching 2.01 and 1.95 respectively, indicating a slower rate of inventory turnover. However, there is a notable improvement in December 31, 2024, with the inventory turnover ratio rising to 2.29.
Overall, the trend suggests some challenges in efficiently managing inventory levels from 2020 to 2023. The improvement in 2024 may indicate efforts to streamline inventory management processes and enhance operational efficiency. Further analysis and comparison with industry benchmarks would provide additional insights into Zoetis Inc's inventory management performance.
Peer comparison
Dec 31, 2024