Zoetis Inc (ZTS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 1,362,000 | 1,286,000 | 1,180,000 | 1,061,000 | 1,123,000 |
| Total current liabilities | US$ in thousands | 1,889,000 | 3,167,000 | 1,797,000 | 2,170,000 | 1,806,000 |
| Quick ratio | 1.80 | 1.54 | 2.60 | 2.15 | 1.69 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,039,000K
+ $—K
+ $1,362,000K)
÷ $1,889,000K
= 1.80
The quick ratio of Zoetis Inc over the past five years has shown some fluctuations. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 2.00 at the end of 2023 indicates that Zoetis Inc had $2.00 of liquid assets available to cover each $1.00 of current liabilities, suggesting a strong ability to meet its short-term obligations using its quick assets.
Comparing this to previous years, we see a decline from 2.30 in 2020 to 1.63 in 2022, which indicates a temporary weakening in Zoetis Inc's liquidity position in those years. However, the quick ratio showed a significant improvement in 2021 with a ratio of 2.79, indicating a strong liquidity position that year. The year 2023 also shows a solid quick ratio of 2.00, although slightly lower than the peak in 2021.
Overall, Zoetis Inc has generally maintained a healthy quick ratio over the years, indicating a strong ability to meet its short-term obligations using its liquid assets. It is important for investors and stakeholders to continue monitoring this ratio to ensure the company's liquidity position remains robust.
Peer comparison
Dec 31, 2023