Zoetis Inc (ZTS)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 4,990,000 | 4,715,000 | 4,588,000 | 4,082,000 | 3,950,000 |
| Payables | US$ in thousands | 411,000 | 405,000 | 436,000 | 457,000 | 301,000 |
| Payables turnover | 12.14 | 11.64 | 10.52 | 8.93 | 13.12 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $4,990,000K ÷ $411,000K
= 12.14
The payables turnover ratio for Zoetis Inc has shown fluctuations over the past five years. The ratio measures how many times a company pays off its accounts payable during a period.
In 2023, the payables turnover was 6.23 times, an increase from the previous year's ratio of 6.06 times. This indicates that Zoetis is managing its accounts payable more efficiently, as it is able to settle its obligations 6.23 times during the year.
Comparing to 2021 and 2020, the increase in the payables turnover ratio suggests that the company is improving its ability to pay off its suppliers more frequently. It reflects a healthier liquidity position and stronger supplier relationships.
However, compared to 2019, the payables turnover decreased significantly in 2021 and 2020 before rebounding in 2022 and 2023. This indicates that Zoetis may have adjusted its payment terms or supplier relationships during this period.
Overall, the upward trend in the payables turnover ratio indicates an improvement in Zoetis' efficiency in managing its accounts payable and its liquidity position over the past few years.
Peer comparison
Dec 31, 2023