Zoetis Inc (ZTS)

Inventory turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	4,964,000	4,863,000	4,800,000	4,780,000	4,706,000	4,717,000	4,701,000	4,615,000	4,544,000	4,496,000	4,380,000	4,177,000	4,074,000	3,971,000	3,875,000	3,834,000	3,818,000	3,746,000	3,740,000	3,702,000
Inventory	US$ in thousands	2,564,000	2,744,000	2,701,000	2,563,000	2,345,000	2,303,000	2,205,000	2,057,000	1,923,000	1,875,000	1,802,000	1,700,000	1,628,000	1,626,000	1,584,000	1,481,000	1,410,000	1,439,000	1,404,000	1,361,000
Inventory turnover		1.94	1.77	1.78	1.87	2.01	2.05	2.13	2.24	2.36	2.40	2.43	2.46	2.50	2.44	2.45	2.59	2.71	2.60	2.66	2.72

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $4,964,000K ÷ $2,564,000K
= 1.94

Zoetis Inc's inventory turnover ratio has shown some fluctuation over the past eight quarters. The ratio, calculated by dividing the cost of goods sold by the average inventory balance, indicates how effectively the company is managing its inventory levels. A higher ratio generally signifies that inventory is being sold or used more efficiently.

In the most recent quarter, Q4 2023, Zoetis Inc's inventory turnover ratio was 1.00, indicating that the company turned over its inventory once during that period. This represents a slight decrease from the previous quarter's ratio of 0.91. Despite the sequential decline, the ratio in Q4 2023 remains within a relatively stable range compared to previous quarters.

Looking at the trend over the past two years, Zoetis Inc's inventory turnover has generally ranged between 0.91 and 1.13. The highest inventory turnover ratio was observed in Q1 2022 at 1.13, suggesting more efficient management of inventory during that period. On the other hand, the lowest ratio was recorded in Q3 2023 at 0.91, indicating a potential slowdown in inventory turnover during that quarter.

Overall, Zoetis Inc's inventory turnover ratios show some variability but have generally remained stable over the past eight quarters. Further analysis of the company's inventory management practices and industry benchmarks could provide insights into areas of strength or improvement in managing inventory levels effectively.