Zoetis Inc (ZTS)
Payables 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 |
| Payables | US$ in thousands | 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 | 301,000 | 284,000 | 290,000 | 235,000 |
| Payables turnover | 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 | 12.68 | 13.19 | 12.90 | 15.75 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $4,964,000K ÷ $411,000K
= 12.08
The payables turnover ratio is a measure of how efficiently a company is managing its accounts payable by paying off suppliers. It indicates how many times a company pays off its average accounts payable balance over a specific period.
Looking at the data provided for Zoetis Inc's payables turnover ratio, we observe some fluctuations over the past eight quarters. The payables turnover ratio ranged from a low of 5.29 in Q2 2023 to a high of 6.44 in Q3 2022.
A higher payables turnover ratio generally suggests that the company is paying off its suppliers more frequently, which may indicate efficient management of accounts payable. On the other hand, a lower ratio may imply that the company is taking longer to settle its payables.
In the recent quarters, Zoetis Inc's payables turnover ratio has been relatively stable, hovering around the 6.0 mark. This suggests that the company has been maintaining a consistent pace in paying off its suppliers, which could be seen as a positive sign of financial health and effective working capital management.
It's important for investors and analysts to monitor changes in the payables turnover ratio over time to assess the company's relationships with suppliers and its ability to manage working capital effectively.
Peer comparison
Dec 31, 2023