Zoetis Inc (ZTS)
Payables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 5,245,000 | 5,218,000 | 5,131,000 | 5,050,000 | 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 |
| Payables | US$ in thousands | 433,000 | 404,000 | 420,000 | 405,000 | 411,000 | 388,000 | 464,000 | 424,000 | 405,000 | 373,000 | 430,000 | 402,000 | 436,000 | 387,000 | 369,000 | 346,000 | 457,000 | 357,000 | 335,000 | 265,000 |
| Payables turnover | 12.11 | 12.92 | 12.22 | 12.47 | 12.08 | 12.53 | 10.34 | 11.27 | 11.62 | 12.65 | 10.93 | 11.48 | 10.42 | 11.62 | 11.87 | 12.07 | 8.91 | 11.12 | 11.57 | 14.47 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $5,245,000K ÷ $433,000K
= 12.11
The payables turnover ratio is a financial metric used to assess how efficiently a company is managing its accounts payable by measuring how many times a company pays off its average accounts payable balance during a specific period.
Analyzing Zoetis Inc's payables turnover ratio over the past few years, we observe fluctuations in the ratio, indicating changes in the company's ability to manage its accounts payable effectively. The turnover ratio has ranged from a high of 14.47 in March 2020 to a low of 8.91 in December 2020, showing variability in the speed at which Zoetis is paying off its suppliers.
In general, a higher payables turnover ratio indicates that a company is paying off its accounts payable more quickly, which can signify strong liquidity and good vendor relationships. Conversely, a lower ratio may suggest inefficiencies or potential cash flow issues.
For Zoetis Inc, the payables turnover ratio has shown some volatility but has generally remained within a moderate range. The company seems to have improved its efficiency in managing its accounts payable in recent periods, as evidenced by the upward trend towards the latter part of the data provided.
It is important for investors and analysts to closely monitor changes in the payables turnover ratio over time to gain insights into Zoetis Inc's financial health, liquidity position, and supplier relationships.
Peer comparison
Dec 31, 2024