Stock Analysis on Net

Zoetis Inc. (NYSE:ZTS)

This company has been moved to the archive! The financial data has not been updated since May 5, 2022.

Analysis of Debt

Microsoft Excel

Total Debt (Carrying Amount)

Zoetis Inc., balance sheet: debt

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Short-term borrowings 4 9
Current portion of long-term debt 600 500
Long-term debt, net of discount and issuance costs, excluding current portion 6,592 6,595 5,947 6,443 4,953
Total debt (carrying amount) 6,592 7,199 6,447 6,452 4,953

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Total debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Zoetis Inc. total debt increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2021
Selected Financial Data (US$ in millions)
Short-term borrowings
Long-term debt, including current portion 7,443
Total debt (fair value) 7,443
Financial Ratio
Debt, fair value to carrying amount ratio 1.13

Based on: 10-K (reporting date: 2021-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 3.63%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
3.25% 1,350 44
4.50% 750 34
3.00% 750 23
3.90% 500 20
2.00% 750 15
4.70% 1,150 54
3.95% 500 20
4.45% 400 18
3.00% 500 15
Total 6,650 241
3.63%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 241 ÷ 6,650 = 3.63%


Interest Costs Incurred

Zoetis Inc., interest costs incurred

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Interest expense, net of capitalized interest 224 231 223 206 175
Capitalized interest expense 20 17 13 9 4
Interest costs incurred 244 248 236 215 179

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Debt item Description The company
Interest expense, net of capitalized interest Amount of the cost of borrowed funds accounted for as interest expense for debt. Zoetis Inc. interest expense, net of capitalized interest increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Capitalized interest expense Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Zoetis Inc. capitalized interest expense increased from 2019 to 2020 and from 2020 to 2021.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Zoetis Inc. interest costs incurred increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Adjusted Interest Coverage Ratio

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income attributable to Zoetis Inc. 2,037 1,638 1,500 1,428 864
Add: Net income attributable to noncontrolling interest (3) (2) (4) (2)
Add: Income tax expense 454 360 301 266 663
Add: Interest expense, net of capitalized interest 224 231 223 206 175
Earnings before interest and tax (EBIT) 2,712 2,227 2,024 1,896 1,700
 
Interest costs incurred 244 248 236 215 179
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 12.11 9.64 9.08 9.20 9.71
Adjusted interest coverage ratio (with capitalized interest)2 11.11 8.98 8.58 8.82 9.50

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net of capitalized interest
= 2,712 ÷ 224 = 12.11

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 2,712 ÷ 244 = 11.11


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Zoetis Inc. adjusted interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.