Zoetis Inc (ZTS)
Debt-to-equity 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-equity ratio | 1.09 | 1.31 | 1.49 | 1.45 | 1.75 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,220,000K ÷ $4,770,000K
= 1.09
The debt-to-equity ratio of Zoetis Inc has shown a gradual decline from 1.75 in December 2020 to 1.09 in December 2024. This indicates that the company's reliance on debt relative to equity has been decreasing over the years, which could be viewed positively by investors and creditors. A lower debt-to-equity ratio signifies a more conservative capital structure, implying a lower financial risk and higher solvency for the company. However, it is important to note that a high debt-to-equity ratio may not always be unfavorable, as it may also signal efficient leverage utilization for potential growth and profitability. Throughout this period, Zoetis Inc has been managing its debt and equity levels effectively, maintaining a balanced financial position.
Peer comparison
Dec 31, 2024