Common-Size Balance Sheet: Assets
Quarterly Data
Zoetis Inc., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).
The asset composition reflects a strategic shift from high liquidity and intangible-heavy valuations toward a more operational, asset-intensive structure. Over the analyzed period, there is a discernible migration of capital from cash and intangible assets into tangible operating assets such as property, plant, and equipment and inventories.
- Liquidity and Short-Term Asset Trends
- Cash and cash equivalents exhibited significant volatility, beginning at 15.88% in early 2019 and peaking at 26.62% in September 2020. Following this peak, a steady decline occurred, with the ratio falling to 13.76% by March 2024. Total current assets followed a similar trajectory, increasing from approximately 40% to a peak of 50.10% in June 2021 before settling at 44.32% by the end of the period. Accounts receivable remained relatively stable, fluctuating within a narrow band between 7.37% and 9.62%.
- Operational Asset Expansion
- A consistent upward trend is observed in the proportion of total assets dedicated to physical operations. Inventories grew from 12.51% in March 2019 to 18.48% in March 2024, suggesting an increase in stock levels to support growth or mitigate supply chain risks. Similarly, property, plant, and equipment, net of depreciation, rose from 15.46% to 22.66% over the same period, indicating sustained investment in production capacity and infrastructure.
- Intangible Asset Amortization and Valuation
- There is a marked reduction in the weight of intangible assets relative to the total balance sheet. Identifiable intangible assets decreased significantly from 18.28% to 9.03%, likely reflecting the impact of scheduled amortization. Goodwill also experienced a gradual decline from 23.17% in early 2019 to 19.23% in March 2024, contributing to the overall reduction in noncurrent assets from 59.76% to 55.68%.
- Long-Term Asset Structure
- Noncurrent deferred tax assets showed a gradual increase, moving from 0.60% to 1.62%, while operating lease right-of-use assets remained essentially flat, hovering between 1.26% and 1.77%. The overall balance sheet has transitioned from being dominated by goodwill and intangibles to one more heavily weighted toward tangible fixed assets and inventory.
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