Zoetis Inc (ZTS)
Debt-to-equity 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-equity ratio | 1.31 | 1.49 | 1.45 | 1.75 | 2.20 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,564,000K ÷ $4,997,000K
= 1.31
The debt-to-equity ratio of Zoetis Inc has been fluctuating over the past five years. A decreasing trend is observed from 2.38 in 2019, to 1.31 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and growth, and is gradually strengthening its equity position relative to debt.
The ratio was at its highest in 2020 at 1.91 before decreasing to 1.45 in 2021, and then further dropping to 1.79 in 2022. The downward trend since 2020 suggests that Zoetis Inc has been actively managing its debt levels and improving its financial leverage, which can positively impact its overall financial health and stability.
A debt-to-equity ratio of 1.31 in 2023 indicates that for every dollar of equity, Zoetis Inc has $1.31 in debt. This level suggests a more balanced capital structure compared to previous years, which could potentially lower financial risk and enhance the company's ability to weather economic challenges. Overall, the decreasing trend in the debt-to-equity ratio reflects a positive shift towards a more sustainable financing mix for Zoetis Inc.
Peer comparison
Dec 31, 2023