Debt to Equity
since 2012
Calculation
Zoetis Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Short-term borrowings and long-term debt1 | ÷ | Total Zoetis Inc. equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2023 | 1.31 | = | 6,567) | ÷ | 4,997) |
| Dec 31, 2022 | 1.79 | = | 7,904) | ÷ | 4,405) |
| Dec 31, 2021 | 1.45 | = | 6,592) | ÷ | 4,543) |
| Dec 31, 2020 | 1.91 | = | 7,199) | ÷ | 3,769) |
| Dec 31, 2019 | 2.38 | = | 6,447) | ÷ | 2,708) |
| Dec 31, 2018 | 2.95 | = | 6,452) | ÷ | 2,185) |
| Dec 31, 2017 | 2.80 | = | 4,953) | ÷ | 1,770) |
| Dec 31, 2016 | 3.00 | = | 4,468) | ÷ | 1,487) |
| Dec 31, 2015 | 4.56 | = | 4,868) | ÷ | 1,068) |
| Dec 31, 2014 | 2.78 | = | 3,650) | ÷ | 1,311) |
| Dec 31, 2013 | 3.89 | = | 3,657) | ÷ | 940) |
| Dec 31, 2012 | 0.14 | = | 582) | ÷ | 4,026) |
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 capital structure of the organization has undergone significant transformations between 2012 and 2023, transitioning from a position of minimal leverage to a period of aggressive borrowing, followed by a sustained phase of equity growth and deleveraging.
- Debt to Equity Ratio Trends
- A sharp escalation in leverage is observed between 2012 and 2013, with the ratio rising from 0.14 to 3.89. The ratio peaked in 2015 at 4.56, marking the period of highest financial leverage. From 2016 onward, a general downward trajectory is evident, with the ratio decreasing to 1.31 by the end of 2023, indicating a strategic shift toward a more balanced capital structure.
- Analysis of Total Debt
- Short-term borrowings and long-term debt increased dramatically from 582 million in 2012 to 3.657 billion in 2013. Debt levels remained elevated throughout the following decade, reaching a maximum peak of 7.904 billion in 2022. A moderate reduction to 6.567 billion in 2023 suggests a recent trend toward liability reduction.
- Equity Growth and Stabilization
- Total equity experienced a substantial contraction between 2012 and 2013, falling from 4.026 billion to 940 million. Following this decline, a consistent and sustained recovery occurred over the subsequent ten years. Equity grew steadily from 940 million in 2013 to 4.997 billion in 2023. This continuous expansion of the equity base has been the primary driver in reducing the debt to equity ratio, even during periods when absolute debt levels remained high.
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Comparison to Competitors
Zoetis Inc., debt to equity, long-term trends, 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 | 1.31 | 5.73 | 10.37 | 1.35 | 0.34 | 2.34 | 1.09 | 0.43 | 0.93 | 0.81 | 0.10 | 0.75 | 0.02 |
| Dec 31, 2022 | 1.79 | 3.67 | 10.64 | 1.27 | 0.39 | 1.52 | 1.19 | 0.52 | 0.67 | 0.37 | 0.12 | 0.78 | 0.03 |
| Dec 31, 2021 | 1.45 | 4.98 | 4.97 | 1.24 | 0.49 | 1.88 | 1.27 | 0.46 | 0.87 | 0.50 | 0.14 | 0.85 | 0.06 |
| Dec 31, 2020 | 1.91 | 6.58 | 3.51 | 1.34 | 0.53 | 2.94 | 1.73 | 0.56 | 1.26 | 0.63 | 0.24 | 0.63 | 0.07 |
| Dec 31, 2019 | 2.38 | — | 3.09 | 0.91 | 0.72 | 5.88 | 1.09 | 0.47 | 1.02 | 0.83 | 0.06 | 0.60 | 0.09 |
| Dec 31, 2018 | 2.95 | — | 2.71 | 0.52 | 0.35 | 1.30 | 1.28 | 0.51 | 0.94 | 0.66 | 0.08 | 0.69 | 0.13 |
| Dec 31, 2017 | 2.80 | 7.33 | 1.40 | 0.68 | 0.40 | 1.18 | 1.64 | 0.57 | 0.71 | 0.60 | 0.11 | 0.83 | 0.29 |
| Dec 31, 2016 | 3.00 | 7.95 | 1.16 | 0.41 | 0.53 | 0.74 | 1.39 | 0.39 | 0.62 | 0.71 | 0.11 | 0.77 | 0.71 |
| Dec 31, 2015 | 4.56 | 8.03 | 1.12 | 0.47 | 0.54 | 0.55 | 1.20 | 0.28 | 0.59 | 0.60 | 0.10 | 0.59 | 0.86 |
| Dec 31, 2014 | 2.78 | 8.62 | 1.19 | 0.53 | 0.15 | 0.52 | 0.80 | 0.27 | 0.44 | 0.51 | 0.18 | 0.71 | 0.75 |
| Dec 31, 2013 | 3.89 | 3.28 | 1.45 | 0.55 | 0.16 | 0.30 | 0.58 | 0.25 | 0.50 | 0.48 | 0.26 | 0.62 | 0.36 |
| Dec 31, 2012 | 0.14 | 4.66 | 1.39 | 0.54 | 0.28 | 0.37 | 0.88 | 0.25 | 0.39 | 0.46 | 0.37 | 0.46 | 0.68 |
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., debt to equity, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Zoetis Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2023 | 1.31 | 0.97 |
| Dec 31, 2022 | 1.79 | 0.80 |
| Dec 31, 2021 | 1.45 | 0.93 |
| Dec 31, 2020 | 1.91 | 1.12 |
| Dec 31, 2019 | 2.38 | 1.09 |
| Dec 31, 2018 | 2.95 | 0.93 |
| Dec 31, 2017 | 2.80 | 0.87 |
| Dec 31, 2016 | 3.00 | 0.79 |
| Dec 31, 2015 | 4.56 | 0.68 |
| Dec 31, 2014 | 2.78 | 0.55 |
| Dec 31, 2013 | 3.89 | 0.52 |
| Dec 31, 2012 | 0.14 | 0.51 |
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., debt to equity, long-term trends, comparison to industry (health care)
| Zoetis Inc. | Health Care | |
|---|---|---|
| Dec 31, 2023 | 1.31 | 0.82 |
| Dec 31, 2022 | 1.79 | 0.72 |
| Dec 31, 2021 | 1.45 | 0.80 |
| Dec 31, 2020 | 1.91 | 0.92 |
| Dec 31, 2019 | 2.38 | 0.90 |
| Dec 31, 2018 | 2.95 | 0.80 |
| Dec 31, 2017 | 2.80 | 0.82 |
| Dec 31, 2016 | 3.00 | 0.77 |
| Dec 31, 2015 | 4.56 | 0.69 |
| Dec 31, 2014 | 2.78 | 0.54 |
| Dec 31, 2013 | 3.89 | 0.50 |
| Dec 31, 2012 | 0.14 | 0.54 |
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).