Zoetis Inc (ZTS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,237,000 | 14,286,000 | 14,925,000 | 13,900,000 | 13,600,000 |
| Total stockholders’ equity | US$ in thousands | 4,770,000 | 4,997,000 | 4,405,000 | 4,543,000 | 3,769,000 |
| Financial leverage ratio | 2.98 | 2.86 | 3.39 | 3.06 | 3.61 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,237,000K ÷ $4,770,000K
= 2.98
The financial leverage ratio of Zoetis Inc has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024.
- The ratio decreased from 3.61 in 2020 to 3.06 in 2021, indicating a reduction in the company's reliance on debt to finance its operations.
- Subsequently, the ratio increased to 3.39 by the end of 2022, suggesting a higher level of debt usage compared to the previous year.
- However, by the end of 2023, the financial leverage ratio dropped to 2.86, signifying a decrease in the company's debt burden relative to its equity.
- In 2024, the ratio slightly increased to 2.98, indicating a marginal rise in the level of debt compared to the previous year.
Overall, the trend in Zoetis Inc's financial leverage ratio reflects variability in the company's capital structure and debt management strategies over the five-year period. It is important for stakeholders to monitor these fluctuations to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2024