Zoetis Inc (ZTS)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 6,260,000 | 6,150,000 | 6,046,000 | 5,914,000 |
| Total current assets | US$ in thousands | 6,343,000 | 6,222,000 | 6,183,000 | 6,269,000 | 7,506,000 | 6,551,000 | 6,651,000 | 6,837,000 | 6,930,000 | 6,682,000 | 7,048,000 | 6,794,000 | 6,611,000 | 6,757,000 | 6,285,000 | 4,772,000 | 4,748,000 | 4,618,000 | 4,484,000 | 4,379,000 |
| Total current liabilities | US$ in thousands | 1,889,000 | 1,608,000 | 1,769,000 | 1,915,000 | 3,167,000 | 2,880,000 | 3,051,000 | 3,034,000 | 1,797,000 | 1,471,000 | 2,091,000 | 2,066,000 | 2,170,000 | 2,400,000 | 1,811,000 | 1,721,000 | 1,806,000 | 1,052,000 | 1,075,000 | 1,082,000 |
| Working capital turnover | 1.92 | 1.81 | 1.86 | 1.86 | 1.86 | 2.18 | 2.22 | 2.07 | 1.51 | 1.46 | 1.50 | 1.48 | 1.50 | 1.50 | 1.42 | 2.08 | 2.13 | 1.72 | 1.77 | 1.79 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $8,544,000K ÷ ($6,343,000K – $1,889,000K)
= 1.92
The working capital turnover ratio indicates how efficiently Zoetis Inc is utilizing its working capital to generate sales. A higher ratio suggests better efficiency in managing working capital.
The working capital turnover for Zoetis Inc has fluctuated over the past few quarters. It decreased from Q4 2022 to Q3 2023 and then slightly increased in Q4 2023. The ratio ranged from a low of 1.81 in Q3 2023 to a high of 2.22 in Q3 2022.
Overall, Zoetis Inc has shown a relatively stable performance in terms of working capital turnover, with most values clustering around 1.86 to 2.22. This indicates that the company is effectively utilizing its working capital to generate sales, with some minor fluctuations seen in different quarters.
Further analysis of the company's working capital management practices and comparison with industry benchmarks can provide additional insights into their operational efficiency and financial health.
Peer comparison
Dec 31, 2023