Analysis of Inventory
Paying user area
Try for free
Zoetis Inc. pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Zoetis Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Inventory Disclosure
Zoetis Inc., balance sheet: inventory
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Finished goods | |||||||||||
| Work-in-process | |||||||||||
| Raw materials and supplies | |||||||||||
| Inventories |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Inventory Trends
- The total inventory value has shown a consistent upward trend over the five-year period. From US$1,410 million in 2019, it increased steadily each year to reach US$2,564 million by 2023, reflecting a cumulative rise of approximately 82%. This suggests an expansion in stock levels or valuation over time.
- Finished Goods
- Finished goods inventories increased from US$701 million in 2019 to US$1,147 million in 2023. The growth is notable and fairly steady, with an approximate 64% increase across the period. This upward movement may indicate either higher production outputs being prepared for sale or increased valuation of finished goods stock.
- Work-in-Process
- Work-in-process inventories grew from US$511 million in 2019 to US$966 million in 2023, denoting an 89% increase. The growth rate here is relatively higher compared to finished goods, possibly reflecting increased production activity, longer processing times, or buildup of intermediate goods in the supply chain.
- Raw Materials and Supplies
- Raw materials and supplies inventories exhibited the most significant relative increase over the period, rising from US$198 million in 2019 to US$451 million in 2023. This represents a growth of approximately 128%, implying either higher procurement levels or increased costs of materials. The increase is sharpest between 2020 and 2021, which could be indicative of strategic stockpiling or response to supply chain challenges.
- Overall Interpretation
- The inventory components all display positive growth trends, with raw materials and work-in-process inventories increasing at a faster rate than finished goods. This pattern may suggest a focus on expanding production capacity or managing supply chain and production lead times. The consistent rise in total inventory levels might warrant further examination of turnover rates and inventory management efficiency to ensure optimal working capital utilization.