Name: Zoetis Inc. (NYSE:ZTS) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Short-term borrowings	3)	2)	—)	4)	—)
Current portion of long-term debt	—)	1,350)	—)	600)	500)
Accounts payable	411)	405)	436)	457)	301)
Dividends payable	198)	174)	154)	119)	95)
Accrued expenses	683)	682)	710)	556)	543)
Accrued compensation and related items	382)	300)	392)	295)	276)
Income taxes payable	110)	157)	38)	46)	36)
Finance lease liabilities, current	1)	—)	—)	—)	—)
Other current liabilities	101)	97)	67)	93)	55)
Current liabilities	1,889)	3,167)	1,797)	2,170)	1,806)
Long-term debt, net of discount and issuance costs, excluding current portion	6,564)	6,552)	6,592)	6,595)	5,947)
Noncurrent deferred tax liabilities	146)	142)	320)	378)	434)
Operating lease liabilities, noncurrent	188)	186)	151)	163)	164)
Other taxes payable	271)	258)	257)	260)	257)
Finance lease liabilities, noncurrent	8)	—)	—)	—)	—)
Other noncurrent liabilities	229)	217)	239)	270)	229)
Noncurrent liabilities	7,406)	7,355)	7,559)	7,666)	7,031)
Total liabilities	9,295)	10,522)	9,356)	9,836)	8,837)
Common stock, $0.01 par value	5)	5)	5)	5)	5)
Treasury stock, at cost	(5,597)	(4,539)	(2,952)	(2,230)	(2,042)
Additional paid-in capital	1,133)	1,088)	1,068)	1,065)	1,044)
Retained earnings	10,295)	8,668)	7,186)	5,659)	4,427)
Accumulated other comprehensive loss	(839)	(817)	(764)	(730)	(726)
Total Zoetis Inc. equity	4,997)	4,405)	4,543)	3,769)	2,708)
Equity attributable to noncontrolling interests	(6)	(2)	1)	4)	—)
Total equity	4,991)	4,403)	4,544)	3,773)	2,708)
Total liabilities and equity	14,286)	14,925)	13,900)	13,609)	11,545)

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 financial position of the entity from 2019 to 2023 is characterized by a stable long-term debt profile and a significant expansion of stockholders' equity, primarily driven by the accumulation of retained earnings and an aggressive share repurchase program.

Liability Structure and Trends: Total liabilities exhibited fluctuations over the five-year period, peaking at 10,522 million US$ in 2022 before declining to 9,295 million US$ in 2023. Current liabilities showed notable volatility, specifically a sharp increase to 3,167 million US$ in 2022, which was primarily attributable to a spike in the current portion of long-term debt reaching 1,350 million US$. This figure returned to a lower level in 2023, suggesting the settlement or refinancing of maturing obligations.; Noncurrent liabilities remained relatively stable, ranging between 7,031 million US$ and 7,666 million US$. Long-term debt, net of discount and issuance costs, consistently stayed around the 6.5 billion US$ mark from 2020 through 2023, indicating a consistent long-term borrowing strategy. Notably, noncurrent deferred tax liabilities showed a marked downward trend, decreasing from 434 million US$ in 2019 to 146 million US$ by 2023.
Equity and Shareholder Value: Total equity demonstrated a strong upward trajectory, growing from 2,708 million US$ in 2019 to 4,991 million US$ in 2023. This growth was predominantly fueled by retained earnings, which more than doubled from 4,427 million US$ to 10,295 million US$ over the period, reflecting consistent profitability and a strategy of reinvestment.; A significant counter-trend is observed in treasury stock, which expanded from a negative value of 2,042 million US$ in 2019 to 5,597 million US$ in 2023. This indicates a sustained and aggressive program of share buybacks, which served to offset a portion of the equity growth derived from retained earnings.
Operational Obligations: Accounts payable and accrued expenses remained relatively steady, though accrued expenses grew from 543 million US$ in 2019 to 683 million US$ in 2023, suggesting a scaling of operational activity. Dividends payable showed a consistent annual increase, rising from 95 million US$ in 2019 to 198 million US$ in 2023, signaling an increase in the magnitude of cash distributions to shareholders.

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