Zoetis Inc (ZTS)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,256,000 | 9,152,000 | 8,915,000 | 8,734,000 | 8,544,000 | 8,371,000 | 8,222,000 | 8,094,000 | 8,080,000 | 8,007,000 | 7,995,000 | 7,891,000 | 7,776,000 | 7,616,000 | 7,412,000 | 7,012,000 | 6,675,000 | 6,542,000 | 6,340,000 | 6,339,000 |
| Receivables | US$ in thousands | 1,395,000 | 1,411,000 | 1,383,000 | 1,293,000 | 1,362,000 | 1,257,000 | 1,322,000 | 1,186,000 | 1,286,000 | 1,189,000 | 1,291,000 | 1,222,000 | 1,180,000 | 1,152,000 | 1,170,000 | 1,125,000 | 1,061,000 | 1,012,000 | 984,000 | 965,000 |
| Receivables turnover | 6.64 | 6.49 | 6.45 | 6.75 | 6.27 | 6.66 | 6.22 | 6.82 | 6.28 | 6.73 | 6.19 | 6.46 | 6.59 | 6.61 | 6.34 | 6.23 | 6.29 | 6.46 | 6.44 | 6.57 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $9,256,000K ÷ $1,395,000K
= 6.64
The receivables turnover ratio for Zoetis Inc has remained relatively stable over the period from March 31, 2020, to December 31, 2024, fluctuating within a range of 6.19 to 6.82 times. This ratio indicates that, on average, Zoetis collects its accounts receivable approximately 6 to 7 times a year.
A higher receivables turnover ratio generally suggests that the company has efficient credit policies and effective collection procedures in place. Zoetis consistently maintaining a receivables turnover ratio above 6 indicates that the company efficiently manages its accounts receivable and is able to convert credit sales into cash relatively quickly.
Overall, the stable and relatively high receivables turnover ratio of Zoetis Inc reflects positively on its ability to manage its receivables effectively, ensuring a steady flow of cash and minimizing the risk of bad debts.
Peer comparison
Dec 31, 2024