Zoetis Inc (ZTS)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,544,000 | 8,080,000 | 7,776,000 | 6,675,000 | 6,260,000 |
| Total current assets | US$ in thousands | 6,343,000 | 7,506,000 | 6,930,000 | 6,611,000 | 4,748,000 |
| Total current liabilities | US$ in thousands | 1,889,000 | 3,167,000 | 1,797,000 | 2,170,000 | 1,806,000 |
| Working capital turnover | 1.92 | 1.86 | 1.51 | 1.50 | 2.13 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,544,000K ÷ ($6,343,000K – $1,889,000K)
= 1.92
Zoetis Inc's working capital turnover ratio has fluctuated over the past five years, indicating varying efficiencies in managing its working capital. The ratio measures how effectively the company is using its working capital to generate sales revenue.
The trend reveals that in 2023, Zoetis Inc's working capital turnover improved to 1.92 from 1.86 in 2022, suggesting that the company was able to generate $1.92 in revenue for every dollar invested in working capital. This increase indicates a better utilization of working capital resources to support sales activities.
Comparing the recent trend with the figures from previous years, we observe that in 2021 and 2020, Zoetis Inc's working capital turnover ratio was lower at 1.51 and 1.50, respectively. This may indicate potential inefficiencies in managing working capital during those periods.
However, in 2019, Zoetis Inc achieved a relatively high working capital turnover ratio of 2.13, suggesting superior efficiency in utilizing working capital to drive sales revenue.
Overall, the fluctuation in the working capital turnover ratio over the years indicates the need for Zoetis Inc to consistently monitor and optimize its working capital management practices to enhance operational efficiency and maximize shareholder value.
Peer comparison
Dec 31, 2023