Zoetis Inc (ZTS)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	5,220,000	6,564,000	6,552,000	6,592,000	6,595,000
Total stockholders’ equity	US$ in thousands	4,770,000	4,997,000	4,405,000	4,543,000	3,769,000
Debt-to-capital ratio		0.52	0.57	0.60	0.59	0.64

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,220,000K ÷ ($5,220,000K + $4,770,000K)
= 0.52

Zoetis Inc's debt-to-capital ratio has shown a decreasing trend over the past five years, indicating a relatively lower reliance on debt to finance its operations compared to its capital structure. The ratio decreased from 0.64 as of December 31, 2020, to 0.52 as of December 31, 2024. This downward trajectory suggests that the company has been effectively managing its debt levels in relation to its total capital. A lower debt-to-capital ratio signifies a lower financial risk for the company, as it indicates a healthier balance between debt and equity in its overall capital structure. Additionally, a declining ratio may reflect improved financial stability and potential financial flexibility for Zoetis Inc, allowing it to pursue growth opportunities or withstand economic downturns with greater resilience. Overall, the decreasing trend in Zoetis Inc's debt-to-capital ratio indicates a positive financial position and prudent debt management strategy.