Zoetis Inc (ZTS)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	9,256,000	8,544,000	8,080,000	7,776,000	6,675,000
Receivables	US$ in thousands	1,395,000	1,362,000	1,286,000	1,180,000	1,061,000
Receivables turnover		6.64	6.27	6.28	6.59	6.29

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $9,256,000K ÷ $1,395,000K
= 6.64

To analyze Zoetis Inc's receivables turnover based on the provided data:

1. The receivables turnover ratio indicates how efficiently a company is collecting its accounts receivable during a specific period.

2. Zoetis Inc's receivables turnover has shown a relatively stable trend over the years, fluctuating between 6.27 and 6.64.

3. A higher receivables turnover ratio suggests that Zoetis Inc is collecting its receivables more quickly, which is generally a positive sign of strong liquidity and efficient management of accounts receivable.

4. The slight fluctuations in the receivables turnover ratio may be influenced by factors such as changes in credit policies, customer payment behaviors, or seasonal variations in sales.

5. Overall, with a consistently healthy receivables turnover ratio ranging from 6.27 to 6.64, Zoetis Inc appears to be effectively managing its accounts receivable and converting them into cash in a timely manner.