Zoetis Inc (ZTS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,039,000 | 3,581,000 | 3,485,000 | 3,604,000 | 1,934,000 |
| Short-term investments | US$ in thousands | — | — | — | 2,000 | 0 |
| Total current liabilities | US$ in thousands | 1,889,000 | 3,167,000 | 1,797,000 | 2,170,000 | 1,806,000 |
| Cash ratio | 1.08 | 1.13 | 1.94 | 1.66 | 1.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,039,000K
+ $—K)
÷ $1,889,000K
= 1.08
The cash ratio of Zoetis Inc has fluctuated over the past five years. The ratio stood at 1.31 in 2023, indicating that the company had $1.31 in cash or cash equivalents for every $1 of current liabilities. This was a slight increase from the previous year's ratio of 1.25. In 2021, the cash ratio was notably higher at 2.16, suggesting a stronger ability to cover short-term obligations with cash on hand.
The cash ratio then decreased to 1.83 in 2020 before returning to 1.25 in 2019. Overall, Zoetis Inc's cash ratio has generally been above 1 in the past five years, indicating a generally healthy liquidity position. However, the fluctuations in the ratio should be monitored to ensure the company maintains sufficient cash reserves to meet its short-term obligations.
Peer comparison
Dec 31, 2023