Calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2023 | 3.36 | = | 6,343) | ÷ | 1,889) |
| Dec 31, 2022 | 2.37 | = | 7,506) | ÷ | 3,167) |
| Dec 31, 2021 | 3.86 | = | 6,930) | ÷ | 1,797) |
| Dec 31, 2020 | 3.05 | = | 6,611) | ÷ | 2,170) |
| Dec 31, 2019 | 2.63 | = | 4,748) | ÷ | 1,806) |
| Dec 31, 2018 | 3.60 | = | 4,399) | ÷ | 1,223) |
| Dec 31, 2017 | 3.85 | = | 4,217) | ÷ | 1,094) |
| Dec 31, 2016 | 3.03 | = | 3,390) | ÷ | 1,117) |
| Dec 31, 2015 | 2.15 | = | 3,830) | ÷ | 1,781) |
| Dec 31, 2014 | 3.19 | = | 3,465) | ÷ | 1,086) |
| Dec 31, 2013 | 2.37 | = | 3,357) | ÷ | 1,415) |
| Dec 31, 2012 | 2.55 | = | 2,864) | ÷ | 1,123) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 US$ in millions
The short-term liquidity position of the organization has remained robust between 2012 and 2023, characterized by a current ratio that consistently exceeded 2.0. This indicates a sustained ability to cover short-term obligations with current assets, maintaining a significant margin of safety throughout the analyzed period.
- Current Asset Progression
- Current assets exhibited a general upward trajectory, increasing from 2,864 million US dollars in 2012 to 6,343 million US dollars by 2023. A peak in liquidity was observed in 2022, where assets reached 7,506 million US dollars, representing a substantial growth in short-term resource availability over the decade.
- Current Liability Fluctuations
- Current liabilities showed greater volatility than assets. While liabilities remained relatively stable between 1,000 and 2,000 million US dollars for much of the period, a significant spike occurred in 2022, reaching 3,167 million US dollars. This increase correlates with the lowest current ratio observed in the latter half of the period.
- Current Ratio Volatility and Trends
- The current ratio fluctuated between a minimum of 2.15 in 2015 and a maximum of 3.86 in 2021. Notable peaks occurred in 2017 (3.85) and 2021 (3.86), reflecting periods of exceptionally high liquidity relative to short-term debt. The decline to 2.37 in 2022 was primarily driven by the surge in current liabilities, followed by a recovery to 3.36 in 2023 as liabilities decreased to 1,889 million US dollars.
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Comparison to Competitors
| Zoetis Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | Vertex Pharmaceuticals Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 3.36 | 0.87 | 1.65 | 1.43 | 1.68 | 0.94 | 1.43 | 1.16 | 1.25 | 0.91 | 5.69 | 1.75 | 3.99 |
| Dec 31, 2022 | 2.37 | 0.96 | 1.41 | 1.25 | 1.89 | 1.05 | 1.29 | 0.99 | 1.47 | 1.22 | 5.06 | 1.48 | 4.83 |
| Dec 31, 2021 | 3.86 | 0.79 | 1.59 | 1.52 | 1.43 | 1.23 | 1.27 | 1.35 | 1.27 | 1.40 | 3.56 | 1.50 | 4.46 |
| Dec 31, 2020 | 3.05 | 0.84 | 1.81 | 1.58 | 1.86 | 1.40 | 1.40 | 1.21 | 1.02 | 1.35 | 3.63 | 2.13 | 4.33 |
| Dec 31, 2019 | 2.63 | 3.18 | 1.44 | 1.60 | 5.19 | 1.16 | 3.10 | 1.26 | 1.24 | 0.88 | 3.67 | 1.92 | 3.61 |
| Dec 31, 2018 | 3.60 | 0.98 | 2.79 | 1.61 | 1.47 | 1.73 | 3.38 | 1.47 | 1.17 | 1.57 | 4.47 | 1.73 | 3.43 |
| Dec 31, 2017 | 3.85 | 1.28 | 5.49 | 1.55 | 1.43 | 1.32 | 2.74 | 1.41 | 1.33 | 1.35 | 3.82 | 1.34 | 3.28 |
| Dec 31, 2016 | 3.03 | 1.65 | 4.11 | 1.55 | 0.97 | 1.37 | 2.22 | 2.47 | 1.78 | 1.25 | 2.56 | 1.44 | 2.31 |
| Dec 31, 2015 | 2.15 | 1.50 | 4.44 | 1.30 | 1.27 | 1.53 | 2.50 | 2.17 | 1.55 | 1.49 | 3.59 | 1.38 | 2.78 |
| Dec 31, 2014 | 3.19 | 1.41 | 4.95 | 1.73 | 1.75 | 1.09 | 3.07 | 2.36 | 1.77 | 2.67 | 3.31 | 1.22 | 4.20 |
| Dec 31, 2013 | 2.37 | 2.59 | 3.44 | 1.52 | 2.01 | 1.47 | 1.15 | 2.20 | 2.00 | 2.41 | 6.01 | 3.16 | 3.99 |
| Dec 31, 2012 | 2.55 | 2.27 | 3.81 | 1.15 | 1.80 | 1.55 | 1.44 | 1.90 | 1.90 | 2.15 | 7.37 | 2.31 | 3.67 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Zoetis Inc., current ratio, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Zoetis Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2023 | 3.36 | 1.27 |
| Dec 31, 2022 | 2.37 | 1.30 |
| Dec 31, 2021 | 3.86 | 1.36 |
| Dec 31, 2020 | 3.05 | 1.37 |
| Dec 31, 2019 | 2.63 | 1.66 |
| Dec 31, 2018 | 3.60 | 1.71 |
| Dec 31, 2017 | 3.85 | 1.74 |
| Dec 31, 2016 | 3.03 | 1.91 |
| Dec 31, 2015 | 2.15 | 1.90 |
| Dec 31, 2014 | 3.19 | 2.19 |
| Dec 31, 2013 | 2.37 | 2.17 |
| Dec 31, 2012 | 2.55 | 2.04 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Industry (Health Care)
| Zoetis Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | 3.36 | 1.23 |
| Dec 31, 2022 | 2.37 | 1.23 |
| Dec 31, 2021 | 3.86 | 1.31 |
| Dec 31, 2020 | 3.05 | 1.30 |
| Dec 31, 2019 | 2.63 | 1.48 |
| Dec 31, 2018 | 3.60 | 1.52 |
| Dec 31, 2017 | 3.85 | 1.55 |
| Dec 31, 2016 | 3.03 | 1.73 |
| Dec 31, 2015 | 2.15 | 1.70 |
| Dec 31, 2014 | 3.19 | 1.92 |
| Dec 31, 2013 | 2.37 | 1.96 |
| Dec 31, 2012 | 2.55 | 1.84 |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).