Stock Analysis on Net
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 2, 2024.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Zoetis Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Short-term borrowings 0.02 0.01 0.00 0.03 0.00
Current portion of long-term debt 0.00 9.05 0.00 4.41 4.33
Accounts payable 2.88 2.71 3.14 3.36 2.61
Dividends payable 1.39 1.17 1.11 0.87 0.82
Accrued expenses 4.78 4.57 5.11 4.09 4.70
Accrued compensation and related items 2.67 2.01 2.82 2.17 2.39
Income taxes payable 0.77 1.05 0.27 0.34 0.31
Finance lease liabilities, current 0.01 0.00 0.00 0.00 0.00
Other current liabilities 0.71 0.65 0.48 0.68 0.48
Current liabilities 13.22% 21.22% 12.93% 15.95% 15.64%
Long-term debt, net of discount and issuance costs, excluding current portion 45.95 43.90 47.42 48.46 51.51
Noncurrent deferred tax liabilities 1.02 0.95 2.30 2.78 3.76
Operating lease liabilities, noncurrent 1.32 1.25 1.09 1.20 1.42
Other taxes payable 1.90 1.73 1.85 1.91 2.23
Finance lease liabilities, noncurrent 0.06 0.00 0.00 0.00 0.00
Other noncurrent liabilities 1.60 1.45 1.72 1.98 1.98
Noncurrent liabilities 51.84% 49.28% 54.38% 56.33% 60.90%
Total liabilities 65.06% 70.50% 67.31% 72.28% 76.54%
Common stock, $0.01 par value 0.03 0.03 0.04 0.04 0.04
Treasury stock, at cost -39.18 -30.41 -21.24 -16.39 -17.69
Additional paid-in capital 7.93 7.29 7.68 7.83 9.04
Retained earnings 72.06 58.08 51.70 41.58 38.35
Accumulated other comprehensive loss -5.87 -5.47 -5.50 -5.36 -6.29
Total Zoetis Inc. equity 34.98% 29.51% 32.68% 27.69% 23.46%
Equity attributable to noncontrolling interests -0.04 -0.01 0.01 0.03 0.00
Total equity 34.94% 29.50% 32.69% 27.72% 23.46%
Total liabilities and equity 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The capital structure reveals a strategic shift toward a more equity-weighted balance sheet over the five-year period. Total liabilities decreased from 76.54% of total liabilities and equity in 2019 to 65.06% in 2023, while total equity grew from 23.46% to 34.94% during the same interval. This transition indicates a reduction in overall leverage and an increase in the proportion of internally generated and shareholder-funded capital.

Long-Term Debt and Noncurrent Liabilities
Long-term debt remains the most significant component of the liability structure. It experienced a gradual decline from 51.51% in 2019 to 45.95% in 2023. Total noncurrent liabilities followed a similar downward trajectory, moving from 60.90% to 51.84%. The decrease is primarily attributed to the reduction in long-term debt and a notable decline in noncurrent deferred tax liabilities, which fell from 3.76% in 2019 to 1.02% in 2023.
Current Liability Volatility
Current liabilities exhibited fluctuations, ending at 13.22% in 2023 compared to 15.64% in 2019. A significant spike occurred in 2022, where current liabilities peaked at 21.22%, driven largely by a sharp increase in the current portion of long-term debt, which reached 9.05% that year. Other current items, such as accounts payable and accrued expenses, remained relatively stable, typically oscillating between 2% and 5% of the total structure.
Equity Composition and Shareholder Returns
The growth in total equity is characterized by two opposing forces: a substantial increase in retained earnings and an aggressive expansion of treasury stock. Retained earnings grew from 38.35% in 2019 to 72.06% in 2023, signaling strong profitability and capital retention. Simultaneously, treasury stock expanded from -17.69% to -39.18%, reflecting a consistent and increasing commitment to share repurchases. This suggests that while the company is generating significant earnings, a substantial portion of that value is being returned to shareholders via buybacks.
Other Financial Indicators
Accumulated other comprehensive loss remained relatively stable, fluctuating between -5.36% and -6.29%. Additional paid-in capital showed a slight downward trend, decreasing from 9.04% in 2019 to 7.93% in 2023, indicating that equity growth is being driven by earnings rather than new capital contributions.

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