Zoetis Inc (ZTS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,986,000 | 6,343,000 | 7,506,000 | 6,930,000 | 6,611,000 |
| Total current liabilities | US$ in thousands | 3,412,000 | 1,889,000 | 3,167,000 | 1,797,000 | 2,170,000 |
| Current ratio | 1.75 | 3.36 | 2.37 | 3.86 | 3.05 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,986,000K ÷ $3,412,000K
= 1.75
The current ratio of Zoetis Inc has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was 3.05, indicating that the company had $3.05 in current assets for every $1 in current liabilities. This ratio improved to 3.86 by December 31, 2021, suggesting a stronger liquidity position. However, by December 31, 2022, the current ratio decreased to 2.37, indicating a potential decrease in short-term liquidity.
Subsequently, by December 31, 2023, the current ratio increased to 3.36, signaling an improvement in the company's ability to cover its short-term obligations. However, by December 31, 2024, the current ratio dropped to 1.75, which may raise concerns about Zoetis Inc's short-term liquidity position.
Overall, the trend in the current ratio for Zoetis Inc shows variability, with periods of strength and weakness in short-term liquidity management. It is essential for stakeholders to monitor these fluctuations to assess the company's ability to meet its current liabilities effectively.
Peer comparison
Dec 31, 2024