Zoetis Inc (ZTS)
Working capital 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 |
| Total current assets | US$ in thousands | 5,986,000 | 6,343,000 | 7,506,000 | 6,930,000 | 6,611,000 |
| Total current liabilities | US$ in thousands | 3,412,000 | 1,889,000 | 3,167,000 | 1,797,000 | 2,170,000 |
| Working capital turnover | 3.60 | 1.92 | 1.86 | 1.51 | 1.50 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $9,256,000K ÷ ($5,986,000K – $3,412,000K)
= 3.60
The working capital turnover of Zoetis Inc has shown a consistent improvement over the years, indicating the company's ability to efficiently utilize its working capital to generate sales revenue. From 2020 to 2024, the working capital turnover ratio has increased steadily from 1.50 to 3.60.
This suggests that Zoetis has been more effective in managing its working capital to support its operations and sales growth. A higher working capital turnover ratio signifies that the company is able to generate more sales revenue from each unit of working capital invested, reflecting operational efficiency and effectiveness in utilizing resources.
Overall, the increasing trend in working capital turnover ratio for Zoetis indicates a positive outlook for the company's financial performance and operational efficiency in the coming years.
Peer comparison
Dec 31, 2024