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 financial trends over the analyzed period reveal notable fluctuations in both debt levels and equity, influencing the overall debt-to-equity ratio.
- Debt Levels (Short-term borrowings and long-term debt)
- Debt saw substantial growth from 582 million US dollars in 2012 to a peak of 7,904 million US dollars in 2022. An initial sharp rise occurred between 2012 and 2013, increasing over six-fold. Throughout the subsequent years, debt remained elevated, generally trending upward with minor fluctuations, including a decrease in 2023 to 6,567 million US dollars.
- Equity Trends (Total equity)
- Equity started relatively modest at 4026 million US dollars in 2012, dropped markedly to 940 million in 2013, but then demonstrated recovery and growth over the following years. From 2014 onward, equity increased steadily, reaching 4,997 million US dollars in 2023, reflecting strengthening shareholder value despite initial volatility.
- Debt to Equity Ratio
- The ratio exhibited considerable volatility corresponding to movements in debt and equity. It spiked dramatically to 3.89 in 2013 from 0.14 in 2012, reflecting the sharp increase in debt relative to equity. Subsequent years showed a gradual decline in leverage, reaching a low of 1.31 in 2023, indicating a reduction in reliance on debt financing relative to equity capital. This improvement suggests a trend toward a more balanced capital structure.
Overall, the company experienced significant debt accumulation early in the period, followed by efforts to stabilize and reduce debt relative to equity in recent years. Equity's recovery offset high debt levels, contributing to improved leverage ratios and potentially enhancing financial stability.
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 | 0.73 |
| Dec 31, 2021 | 1.45 | 0.79 |
| Dec 31, 2020 | 1.91 | 0.92 |
| Dec 31, 2019 | 2.38 | 0.92 |
| Dec 31, 2018 | 2.95 | 0.86 |
| Dec 31, 2017 | 2.80 | 0.81 |
| Dec 31, 2016 | 3.00 | 0.76 |
| Dec 31, 2015 | 4.56 | 0.69 |
| Dec 31, 2014 | 2.78 | 0.52 |
| Dec 31, 2013 | 3.89 | 0.49 |
| 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).