Zoetis Inc (ZTS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 3.36 | 2.37 | 3.86 | 3.05 | 2.63 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,343,000K ÷ $1,889,000K
= 3.36
The current ratio of Zoetis Inc has fluctuated over the past five years, indicating varying levels of liquidity and short-term financial health. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.
In 2023, the current ratio stands at 3.36, which indicates that Zoetis Inc has $3.36 in current assets for every $1 of current liabilities. Compared to 2022, where the current ratio was 2.37, there has been a significant improvement in liquidity. This suggests that Zoetis Inc has better short-term financial stability in 2023 compared to the previous year.
Looking back at the trend, the company had a notable current ratio of 3.86 in 2021, which was higher than the current ratio in 2023. This indicates that Zoetis Inc had a stronger ability to cover its short-term obligations in 2021 compared to 2023.
In 2020 and 2019, the current ratios were 3.05 and 2.63 respectively, showing a consistent trend of improvement in liquidity from 2019 to 2021, followed by a slight dip in 2022 and a rebound in 2023.
Overall, a current ratio above 1 is typically considered healthy, and the trend of Zoetis Inc's current ratio over the past five years suggests that the company has generally maintained a strong liquidity position, with some fluctuations observed year over year.
Peer comparison
Dec 31, 2023