Zoetis Inc (ZTS)

Debt-to-assets ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	5,220,000	6,574,000	6,563,000	6,562,000	6,564,000	6,552,000	6,555,000	6,559,000	6,552,000	5,210,000	5,221,000	5,228,000	6,592,000	6,592,000	6,592,000	6,587,000	6,595,000	6,595,000	7,194,000	5,963,000
Total assets	US$ in thousands	14,237,000	14,357,000	14,165,000	14,348,000	14,286,000	14,106,000	13,749,000	13,754,000	14,925,000	13,674,000	13,770,000	13,860,000	13,900,000	13,705,000	14,069,000	13,796,000	13,600,000	13,725,000	13,069,000	11,528,000
Debt-to-assets ratio		0.37	0.46	0.46	0.46	0.46	0.46	0.48	0.48	0.44	0.38	0.38	0.38	0.47	0.48	0.47	0.48	0.48	0.48	0.55	0.52

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,220,000K ÷ $14,237,000K
= 0.37

Zoetis Inc's debt-to-assets ratio has shown some fluctuations over the years. From March 31, 2020 to December 31, 2024, the ratio ranged from 0.37 to 0.55, with both decreases and increases during this period. Notably, the ratio decreased from 0.52 in March 31, 2020 to 0.38 in June 30, 2022, but then increased to 0.48 by March 31, 2023. This ratio measures the proportion of the company's assets financed by debt, indicating the extent to which the company relies on debt to fund its operations and investments. A lower ratio suggests less reliance on debt financing, which may be seen as positive by investors and creditors. The gradual decrease in the debt-to-assets ratio from December 31, 2024 (0.37) could potentially indicate improved financial stability as the company may be reducing its debt levels relative to its asset base. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk management.