Zoetis Inc (ZTS)
Payables 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 |
| Payables | US$ in thousands | 433,000 | 411,000 | 405,000 | 436,000 | 457,000 |
| Payables turnover | 12.20 | 12.14 | 11.64 | 10.52 | 8.93 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $5,283,000K ÷ $433,000K
= 12.20
The payables turnover ratio for Zoetis Inc has shown a steady increase over the years, indicating the company's ability to efficiently manage its accounts payable. The ratio improved from 8.93 in December 31, 2020, to 12.20 in December 31, 2024. This suggests that Zoetis has been paying its suppliers at a faster rate each year, which is a positive sign of strong financial health and effective working capital management. A higher payables turnover ratio implies that the company is settling its debts promptly, potentially taking advantage of early payment discounts and maintaining good relationships with its suppliers. Overall, the increasing trend in the payables turnover ratio reflects Zoetis Inc's effective management of its accounts payable process.
Peer comparison
Dec 31, 2024