Zoetis Inc (ZTS)
Working capital 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 |
| Total current assets | US$ in thousands | 5,986,000 | 6,282,000 | 6,202,000 | 6,359,000 | 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 |
| Total current liabilities | US$ in thousands | 3,412,000 | 1,702,000 | 1,797,000 | 1,909,000 | 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 |
| Working capital turnover | 3.60 | 2.00 | 2.02 | 1.96 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,256,000K ÷ ($5,986,000K – $3,412,000K)
= 3.60
Working capital turnover measures how efficiently a company is utilizing its working capital to generate revenue. A higher value indicates better efficiency in utilizing working capital.
In the case of Zoetis Inc, the working capital turnover ratio has shown some fluctuations over the years. From March 31, 2020, to December 31, 2022, the ratio ranged from 1.42 to 2.22, indicating some variability in the company's working capital management during this period.
In the most recent period, from December 31, 2022, to December 31, 2024, Zoetis Inc experienced a significant increase in its working capital turnover ratio, reaching a peak of 3.60 in December 31, 2024. This suggests that the company has improved its efficiency in utilizing its working capital to generate revenue.
Overall, Zoetis Inc's working capital turnover ratio has exhibited fluctuations in the past but has shown improvement in recent periods, indicating positive trends in the company's working capital management and revenue generation efficiency.
Peer comparison
Dec 31, 2024