Zoetis Inc (ZTS)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	6,564,000	6,552,000	6,592,000	6,595,000	5,947,000
Total assets	US$ in thousands	14,300,000	14,925,000	13,900,000	13,600,000	11,545,000
Debt-to-assets ratio		0.46	0.44	0.47	0.48	0.52

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,564,000K ÷ $14,300,000K
= 0.46

The debt-to-assets ratio of Zoetis Inc has shown a declining trend over the past five years, indicating an improvement in the company's ability to finance its assets with debt. The ratio decreased from 0.56 in 2019 to 0.46 in 2023, signifying a reduction in the proportion of debt relative to total assets. This trend suggests that the company has been able to either decrease its debt levels or increase its asset base, or a combination of both, which has resulted in a stronger financial position in terms of leverage.

In 2022, there was a slight increase in the debt-to-assets ratio to 0.53, but this was followed by a decline to 0.47 in 2021. Despite the temporary increase in 2022, the overall trend reflects an improvement in the company's debt management and financial health. A lower debt-to-assets ratio indicates lower financial risk and greater stability for the company, as it suggests that a significant portion of its assets are financed through equity rather than debt.

Overall, the decreasing trend in Zoetis Inc's debt-to-assets ratio from 2019 to 2023 is a positive sign of the company's financial strength and ability to efficiently manage its capital structure. This trend may indicate a strategic focus on deleveraging and maintaining a healthy balance between debt and assets, which could contribute to long-term sustainability and resilience in the face of economic challenges.