Zoetis Inc (ZTS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.36 | 3.87 | 3.50 | 3.27 | 2.37 | 2.27 | 2.18 | 2.25 | 3.86 | 4.54 | 3.37 | 3.29 | 3.05 | 2.82 | 3.47 | 2.77 | 2.63 | 4.39 | 4.17 | 4.05 |
| Quick ratio | 1.80 | 1.87 | 1.72 | 1.72 | 1.54 | 1.32 | 1.33 | 1.44 | 2.60 | 3.01 | 2.31 | 2.29 | 2.15 | 1.94 | 2.39 | 1.69 | 1.69 | 2.72 | 2.58 | 2.55 |
| Cash ratio | 1.08 | 1.09 | 0.97 | 1.10 | 1.13 | 0.91 | 0.90 | 1.03 | 1.94 | 2.23 | 1.75 | 1.74 | 1.66 | 1.52 | 1.85 | 1.13 | 1.07 | 1.74 | 1.66 | 1.66 |
Over the past eight quarters, Zoetis Inc has maintained healthy liquidity levels, as indicated by its current ratio, quick ratio, and cash ratio. The current ratio has consistently exceeded 2.0, indicating that the company has more than enough current assets to cover its current liabilities. This ratio has shown a generally increasing trend, peaking at 3.87 in Q3 2023.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also displayed a positive trend, staying above 1.0 in all periods. Zoetis Inc has maintained a quick ratio above 1.5, indicating its ability to meet short-term obligations without relying on selling inventory.
Furthermore, the cash ratio, focusing solely on the most liquid assets, shows that Zoetis Inc keeps a sufficient amount of cash to cover its current liabilities. The cash ratio has generally improved over the quarters, with the latest reported figure at 1.38 in Q3 2023.
Overall, the liquidity ratios of Zoetis Inc suggest that the company is well-positioned to meet its short-term financial obligations and has the ability to address unexpected funding needs if required.
See also:
Zoetis Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 216.49 | 231.64 | 228.79 | 216.82 | 208.56 | 203.54 | 196.76 | 187.42 | 174.83 | 176.01 | 177.03 | 176.88 | 162.93 | 173.10 | 174.30 | 171.33 | 171.50 | 173.67 | 168.73 | 170.88 |
The cash conversion cycle of Zoetis Inc fluctuated over the past eight quarters, with Q3 2023 showing the highest cycle at 400.72 days and Q1 2022 displaying the lowest cycle at 316.56 days. Generally, the trend indicates an increase in the time it takes for the company to convert its investments in inventory and other resources into cash. This could potentially suggest inefficiencies in managing working capital or inventory levels. It is important for Zoetis Inc to closely monitor and improve its cash conversion cycle to ensure optimal cash flow management and operational efficiency in the long term.