Zoetis Inc (ZTS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 4,997,000 | 4,405,000 | 4,543,000 | 3,769,000 | 2,708,000 |
| Debt-to-capital ratio | 0.57 | 0.60 | 0.59 | 0.64 | 0.69 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,564,000K ÷ ($6,564,000K + $4,997,000K)
= 0.57
The debt-to-capital ratio of Zoetis Inc has demonstrated a downward trend over the past five years, decreasing from 0.70 in 2019 to 0.57 in 2023. This indicates that the company is relying less on debt financing and more on equity financing to fund its operations and growth. A lower debt-to-capital ratio generally suggests a lower financial risk and greater financial flexibility for the company. Despite some fluctuations from year to year, the overall trend shows a positive shift towards a stronger capital structure. The decreasing trend of the debt-to-capital ratio may be viewed positively by investors and creditors as it reflects a potentially healthier financial position for Zoetis Inc.
Peer comparison
Dec 31, 2023