Stock Analysis on Net
Stock Analysis on Net

Zoetis Inc. (NYSE:ZTS)

Cash Flow Statement
Quarterly Data

Beginner level

The cash flow statement provides information about a company’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company’s balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Zoetis Inc., consolidated cash flow statement (quarterly data)

US$ in millions

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3 months ended: Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Oct 1, 2017 Jul 2, 2017 Apr 2, 2017 Dec 31, 2016 Oct 2, 2016 Jul 3, 2016 Apr 3, 2016 Dec 31, 2015 Sep 27, 2015 Jun 28, 2015 Mar 29, 2015
Net income (loss) before allocation to noncontrolling interests 479  376  423  384  433  371  312  345  347  382  350  80  296  247  239  154  237  224  204  20  190  (36) 165 
Depreciation and amortization expense 111  111  110  109  107  98  98  101  84  63  60  63  58  59  62  63  60  60  57  55  46  50  48 
Share-based compensation expense 14  16  16  16  16  17  18  17  14  11  11  11  11  11  11  10  12  10  11  10 
Asset write-offs and asset impairments —  —  —  (3) —  —  —  —  12  10  37 
Net (gain) loss on sales of assets (1) (1) (17) —  (20) —  —  (42) —  —  —  —  —  —  (33) —  —  —  — 
Provision for losses on inventory 24  19  13  24  15  15  14  17  12  16  24  16  40  30  19  16  35  22  19  18 
Deferred taxes (2) (29) (9) (49) (8) (6) (16) 43  —  (14) (141) 130  (16) (11) 24  (3) (69) 42  (25) (4) (8) (70) (3)
Foreign currency loss related to Venezuela Revaluation, excluding impact on cash —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Employee benefit plan contribution from Pfizer Inc. —  —  —  —  —  — 
Loss on treasury locks —  (6) —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Other non-cash adjustments —  (1) (11) —  —  (21) (1) 11  (4) (1)
Accounts receivable (2) (38) 109  (51) (47) (46) 75  (104) 46  (69) 60  (17) (19) (22) (29) (9) 32  21  92  (79) (67) (4)
Inventories (61) (136) (97) (1) (53) (67) 17  32  52  10  (33) 54  11  (52) 32  (46) (84) (3) (61) (30) (94) (77)
Other assets (108) 23  (65) (12) (4) (59) 24  35  (14) (61) (2) 116  (26) (93) (13) 19  (36) (36) 55  (34) (25) (5)
Accounts payable 12  72  (35) 18  (6) 57  (79) 76  (11) 18  (46) 46  10  (29) (37) 28  15  13  (84) (13) 32  24  (26)
Other liabilities 107  (28) (128) 159  51  (16) (103) 87  37  (13) (55) 69  41  —  (148) 16  (33) (82) (191) 103  247  (82)
Other tax accounts, net (22) 48  87  (16) 27  (46) 27  (27) (75) 163  12  52  (13) 34  (38) 19  (75) 114  (34) 37  20  11 
Other changes in assets and liabilities, net of acquisitions and divestitures (74) (59) (129) 97  (32) (177) (39) 99  116  (190) 87  305  71  (148) (238) 12  (35) (232) (179) 142  (69) 105  (183)
Adjustments to reconcile net income (loss) before noncontrolling interests to net cash provided by operating activities 83  62  (15) 198  73  (53) 77  239  203  (115) 39  528  143  (67) (120) 132  (87) (153) 258  14  158  (105)
Net cash provided by operating activities 562  438  408  582  506  318  389  584  550  267  389  608  439  180  119  286  239  137  51  278  204  122  60 
Capital expenditures (117) (90) (94) (166) (128) (103) (63) (138) (74) (73) (53) (83) (48) (51) (42) (60) (57) (54) (45) (81) (52) (46) (45)
Acquisition of Abaxis, net of cash acquired —  —  —  —  —  —  —  —  (1,884) —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Other acquisitions (30) (72) (6) (58) (137) —  —  (6) (108) —  —  —  (79) —  (3) —  (68) (8) (12) (654) —  (230)
Proceeds from maturities and redemptions of investments —  —  —  12  13  40  36  28  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Settlement on swaps designated as net investment hedges (28) (4) 24  —  37  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Net proceeds from sale of assets (2) 20  20  —  —  48  —  —  36  —  —  13  75  —  — 
Other investing activities (1) (1) (2) (14) (6) (3) —  (7) (1) 10  (3) —  —  —  —  (2) (8) —  — 
Net cash (used in) provided by investing activities (174) (164) (57) (213) (209) (59) (23) (74) (2,064) (76) (45) (54) (128) (40) (48) (59) (124) (49) 18  (737) (60) (44) (274)
Increase (decrease) in short-term borrowings, net —  —  —  —  —  (9) —  —  —  —  —  —  —  —  (4) —  (1) (4) (5)
Issuance of commercial paper —  —  —  —  —  —  —  —  —  —  —  —  (100) 100  —  —  —  —  —  —  —  —  — 
Proceeds from issuance of long-term debt, senior notes, net of discount —  1,240  —  —  —  —  —  —  1,485  —  —  —  1,231  —  —  —  —  —  —  1,236  —  —  — 
Principal payments on long-term debt —  —  —  —  —  —  —  —  —  —  —  (750) —  —  —  —  —  —  (400) —  —  —  — 
Payment of contingent consideration related to previously acquired assets —  —  —  —  (1) —  (8) —  —  —  (12) (2) —  —  (5) (4) (6) —  (22) —  —  —  — 
Acquisition of a noncontrolling interest, net of cash acquired —  —  —  —  —  —  —  (26) —  —  (43) —  —  —  —  —  —  —  —  —  —  — 
Share-based compensation-related proceeds, net of taxes paid on withholding shares 17  (3) 12  14 
Purchases of treasury stock —  —  (250) (176) (150) (150) (150) (150) (143) (215) (190) (125) (125) (125) (125) (75) (74) (75) (76) (53) (50) (52) (48)
Cash dividends paid (95) (95) (95) (79) (78) (78) (79) (60) (61) (60) (62) (51) (52) (51) (52) (47) (47) (47) (47) (41) (42) (43) (42)
Cash paid to settle Pharmaq debt —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  (119) —  —  — 
Payment of debt issuance costs —  (12) —  —  —  —  —  —  —  —  —  —  —  —  —  (3) —  —  —  —  —  —  — 
Net cash provided by (used in) financing activities (93) 1,141  (328) (250) (232) (226) (243) (197) 1,263  (271) (262) (967) 956  (64) (176) (128) (124) (108) (543) 1,026  (86) (91) (94)
Effect of exchange-rate changes on cash and cash equivalents (13) (6) —  (5) (6) (21) (16) (4) —  (23) (5) (5) (10) (2) (15)
Net increase (decrease) in cash and cash equivalents 301  1,402  17  119  60  27  126  316  (272) (96) 90  (417) 1,276  76  (98) 76  (7) (17) (479) 562  48  (15) (323)

Based on: 10-Q (filing date: 2020-11-05), 10-Q (filing date: 2020-08-06), 10-Q (filing date: 2020-05-06), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-11-07), 10-Q (filing date: 2019-08-06), 10-Q (filing date: 2019-05-02), 10-K (filing date: 2019-02-14), 10-Q (filing date: 2018-11-01), 10-Q (filing date: 2018-08-02), 10-Q (filing date: 2018-05-02), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-11-02), 10-Q (filing date: 2017-08-08), 10-Q (filing date: 2017-05-04), 10-K (filing date: 2017-02-16), 10-Q (filing date: 2016-11-03), 10-Q (filing date: 2016-08-05), 10-Q (filing date: 2016-05-06), 10-K (filing date: 2016-02-24), 10-Q (filing date: 2015-11-05), 10-Q (filing date: 2015-08-06), 10-Q (filing date: 2015-05-07).

Cash flow statement item Description The company
Net cash provided by operating activities Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. Zoetis Inc.’s net cash provided by operating activities increased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Net cash (used in) provided by investing activities Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. Zoetis Inc.’s net cash (used in) provided by investing activities decreased from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Net cash provided by (used in) financing activities Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. Zoetis Inc.’s net cash provided by (used in) financing activities increased from Q1 2020 to Q2 2020 but then slightly decreased from Q2 2020 to Q3 2020 not reaching Q1 2020 level.