Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
Zoetis Inc., solvency ratios
Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Zoetis Inc.’s debt to equity ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Zoetis Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Zoetis Inc.’s debt to capital ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Zoetis Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Zoetis Inc.’s debt to assets ratio improved from 2018 to 2019 and from 2019 to 2020. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Zoetis Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Zoetis Inc.’s financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Zoetis Inc.’s interest coverage ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Zoetis Inc.’s fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Equity
Zoetis Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4 | — | 9 | — | — | |
| Current portion of long-term debt | 600 | 500 | — | — | — | |
| Long-term debt, net of discount and issuance costs, excluding current portion | 6,595 | 5,947 | 6,443 | 4,953 | 4,468 | |
| Total debt | 7,199 | 6,447 | 6,452 | 4,953 | 4,468 | |
| Total Zoetis Inc. equity | 3,769 | 2,708 | 2,185 | 1,770 | 1,487 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.91 | 2.38 | 2.95 | 2.80 | 3.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Abbott Laboratories | 0.57 | 0.58 | 0.64 | 0.90 | 1.07 | |
| AbbVie Inc. | 6.58 | — | — | 7.33 | 7.95 | |
| Amgen Inc. | 3.51 | 3.09 | 2.71 | 1.40 | 1.16 | |
| Bristol-Myers Squibb Co. | 1.34 | 0.91 | 0.52 | 0.68 | 0.41 | |
| Eli Lilly & Co. | 2.94 | 5.88 | 1.30 | 1.18 | 0.74 | |
| Gilead Sciences Inc. | 1.73 | 1.09 | 1.28 | 1.64 | 1.39 | |
| Illumina Inc. | 0.25 | 0.25 | 0.53 | 0.49 | 0.58 | |
| Johnson & Johnson | 0.56 | 0.47 | 0.51 | 0.57 | 0.39 | |
| Merck & Co. Inc. | 1.26 | 1.02 | 0.94 | 0.71 | 0.62 | |
| Pfizer Inc. | 0.63 | 0.83 | 0.66 | 0.61 | 0.71 | |
| Regeneron Pharmaceuticals Inc. | 0.24 | 0.06 | 0.08 | 0.11 | 0.11 | |
| Vertex Pharmaceuticals Inc. | 0.07 | 0.09 | 0.13 | 0.29 | 0.71 | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals & Biotechnology | 1.20 | 1.12 | 1.00 | 0.94 | 0.84 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.92 | 0.91 | 0.83 | 0.84 | 0.79 | |
Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Debt to equity = Total debt ÷ Total Zoetis Inc. equity
= 7,199 ÷ 3,769 = 1.91
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Zoetis Inc.’s debt to equity ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Equity (including Operating Lease Liability)
Zoetis Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4 | — | 9 | — | — | |
| Current portion of long-term debt | 600 | 500 | — | — | — | |
| Long-term debt, net of discount and issuance costs, excluding current portion | 6,595 | 5,947 | 6,443 | 4,953 | 4,468 | |
| Total debt | 7,199 | 6,447 | 6,452 | 4,953 | 4,468 | |
| Operating lease liabilities, current (in Other current liabilities) | 40 | 35 | — | — | — | |
| Operating lease liabilities, noncurrent | 163 | 164 | — | — | — | |
| Total debt (including operating lease liability) | 7,402 | 6,646 | 6,452 | 4,953 | 4,468 | |
| Total Zoetis Inc. equity | 3,769 | 2,708 | 2,185 | 1,770 | 1,487 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.96 | 2.45 | 2.95 | 2.80 | 3.00 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.61 | 0.61 | 0.64 | 0.90 | 1.07 | |
| AbbVie Inc. | 6.66 | — | — | 7.33 | 7.95 | |
| Amgen Inc. | 3.55 | 3.15 | 2.71 | 1.40 | 1.16 | |
| Bristol-Myers Squibb Co. | 1.37 | 0.92 | 0.52 | 0.68 | 0.41 | |
| Eli Lilly & Co. | 3.06 | 6.11 | 1.30 | 1.18 | 0.74 | |
| Gilead Sciences Inc. | 1.76 | 1.12 | 1.28 | 1.64 | 1.39 | |
| Illumina Inc. | 0.41 | 0.41 | 0.53 | 0.49 | 0.58 | |
| Johnson & Johnson | 0.57 | 0.48 | 0.51 | 0.57 | 0.39 | |
| Merck & Co. Inc. | 1.32 | 1.06 | 0.94 | 0.71 | 0.62 | |
| Pfizer Inc. | 0.65 | 0.85 | 0.66 | 0.61 | 0.71 | |
| Regeneron Pharmaceuticals Inc. | 0.25 | 0.07 | 0.08 | 0.11 | 0.11 | |
| Vertex Pharmaceuticals Inc. | 0.11 | 0.11 | 0.13 | 0.29 | 0.71 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals & Biotechnology | 1.23 | 1.15 | 1.00 | 0.94 | 0.84 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.95 | 0.94 | 0.83 | 0.84 | 0.79 | |
Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Zoetis Inc. equity
= 7,402 ÷ 3,769 = 1.96
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Zoetis Inc.’s debt to equity ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Capital
Zoetis Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4 | — | 9 | — | — | |
| Current portion of long-term debt | 600 | 500 | — | — | — | |
| Long-term debt, net of discount and issuance costs, excluding current portion | 6,595 | 5,947 | 6,443 | 4,953 | 4,468 | |
| Total debt | 7,199 | 6,447 | 6,452 | 4,953 | 4,468 | |
| Total Zoetis Inc. equity | 3,769 | 2,708 | 2,185 | 1,770 | 1,487 | |
| Total capital | 10,968 | 9,155 | 8,637 | 6,723 | 5,955 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.66 | 0.70 | 0.75 | 0.74 | 0.75 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Abbott Laboratories | 0.36 | 0.37 | 0.39 | 0.47 | 0.52 | |
| AbbVie Inc. | 0.87 | 1.14 | 1.27 | 0.88 | 0.89 | |
| Amgen Inc. | 0.78 | 0.76 | 0.73 | 0.58 | 0.54 | |
| Bristol-Myers Squibb Co. | 0.57 | 0.48 | 0.34 | 0.40 | 0.29 | |
| Eli Lilly & Co. | 0.75 | 0.85 | 0.57 | 0.54 | 0.42 | |
| Gilead Sciences Inc. | 0.63 | 0.52 | 0.56 | 0.62 | 0.58 | |
| Illumina Inc. | 0.20 | 0.20 | 0.35 | 0.33 | 0.37 | |
| Johnson & Johnson | 0.36 | 0.32 | 0.34 | 0.37 | 0.28 | |
| Merck & Co. Inc. | 0.56 | 0.50 | 0.48 | 0.42 | 0.38 | |
| Pfizer Inc. | 0.39 | 0.45 | 0.40 | 0.38 | 0.41 | |
| Regeneron Pharmaceuticals Inc. | 0.20 | 0.06 | 0.07 | 0.10 | 0.10 | |
| Vertex Pharmaceuticals Inc. | 0.06 | 0.09 | 0.12 | 0.22 | 0.42 | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals & Biotechnology | 0.54 | 0.53 | 0.50 | 0.48 | 0.46 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.48 | 0.48 | 0.45 | 0.46 | 0.44 | |
Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,199 ÷ 10,968 = 0.66
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Zoetis Inc.’s debt to capital ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Capital (including Operating Lease Liability)
Zoetis Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4 | — | 9 | — | — | |
| Current portion of long-term debt | 600 | 500 | — | — | — | |
| Long-term debt, net of discount and issuance costs, excluding current portion | 6,595 | 5,947 | 6,443 | 4,953 | 4,468 | |
| Total debt | 7,199 | 6,447 | 6,452 | 4,953 | 4,468 | |
| Operating lease liabilities, current (in Other current liabilities) | 40 | 35 | — | — | — | |
| Operating lease liabilities, noncurrent | 163 | 164 | — | — | — | |
| Total debt (including operating lease liability) | 7,402 | 6,646 | 6,452 | 4,953 | 4,468 | |
| Total Zoetis Inc. equity | 3,769 | 2,708 | 2,185 | 1,770 | 1,487 | |
| Total capital (including operating lease liability) | 11,171 | 9,354 | 8,637 | 6,723 | 5,955 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.66 | 0.71 | 0.75 | 0.74 | 0.75 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.38 | 0.38 | 0.39 | 0.47 | 0.52 | |
| AbbVie Inc. | 0.87 | 1.14 | 1.27 | 0.88 | 0.89 | |
| Amgen Inc. | 0.78 | 0.76 | 0.73 | 0.58 | 0.54 | |
| Bristol-Myers Squibb Co. | 0.58 | 0.48 | 0.34 | 0.40 | 0.29 | |
| Eli Lilly & Co. | 0.75 | 0.86 | 0.57 | 0.54 | 0.42 | |
| Gilead Sciences Inc. | 0.64 | 0.53 | 0.56 | 0.62 | 0.58 | |
| Illumina Inc. | 0.29 | 0.29 | 0.35 | 0.33 | 0.37 | |
| Johnson & Johnson | 0.36 | 0.33 | 0.34 | 0.37 | 0.28 | |
| Merck & Co. Inc. | 0.57 | 0.51 | 0.48 | 0.42 | 0.38 | |
| Pfizer Inc. | 0.39 | 0.46 | 0.40 | 0.38 | 0.41 | |
| Regeneron Pharmaceuticals Inc. | 0.20 | 0.06 | 0.07 | 0.10 | 0.10 | |
| Vertex Pharmaceuticals Inc. | 0.10 | 0.10 | 0.12 | 0.22 | 0.42 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals & Biotechnology | 0.55 | 0.54 | 0.50 | 0.48 | 0.46 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.49 | 0.48 | 0.45 | 0.46 | 0.44 | |
Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 7,402 ÷ 11,171 = 0.66
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Zoetis Inc.’s debt to capital ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Assets
Zoetis Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4 | — | 9 | — | — | |
| Current portion of long-term debt | 600 | 500 | — | — | — | |
| Long-term debt, net of discount and issuance costs, excluding current portion | 6,595 | 5,947 | 6,443 | 4,953 | 4,468 | |
| Total debt | 7,199 | 6,447 | 6,452 | 4,953 | 4,468 | |
| Total assets | 13,609 | 11,545 | 10,777 | 8,586 | 7,649 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.53 | 0.56 | 0.60 | 0.58 | 0.58 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Abbott Laboratories | 0.26 | 0.27 | 0.29 | 0.37 | 0.42 | |
| AbbVie Inc. | 0.57 | 0.75 | 0.68 | 0.53 | 0.56 | |
| Amgen Inc. | 0.52 | 0.50 | 0.51 | 0.44 | 0.45 | |
| Bristol-Myers Squibb Co. | 0.43 | 0.36 | 0.21 | 0.24 | 0.20 | |
| Eli Lilly & Co. | 0.36 | 0.39 | 0.29 | 0.30 | 0.27 | |
| Gilead Sciences Inc. | 0.46 | 0.40 | 0.43 | 0.48 | 0.46 | |
| Illumina Inc. | 0.16 | 0.16 | 0.29 | 0.25 | 0.30 | |
| Johnson & Johnson | 0.20 | 0.18 | 0.20 | 0.22 | 0.19 | |
| Merck & Co. Inc. | 0.35 | 0.31 | 0.30 | 0.28 | 0.26 | |
| Pfizer Inc. | 0.26 | 0.31 | 0.26 | 0.25 | 0.25 | |
| Regeneron Pharmaceuticals Inc. | 0.16 | 0.05 | 0.06 | 0.08 | 0.07 | |
| Vertex Pharmaceuticals Inc. | 0.05 | 0.07 | 0.09 | 0.16 | 0.28 | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals & Biotechnology | 0.36 | 0.35 | 0.32 | 0.32 | 0.31 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.33 | 0.33 | 0.31 | 0.32 | 0.31 | |
Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,199 ÷ 13,609 = 0.53
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Zoetis Inc.’s debt to assets ratio improved from 2018 to 2019 and from 2019 to 2020. |
Debt to Assets (including Operating Lease Liability)
Zoetis Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Short-term borrowings | 4 | — | 9 | — | — | |
| Current portion of long-term debt | 600 | 500 | — | — | — | |
| Long-term debt, net of discount and issuance costs, excluding current portion | 6,595 | 5,947 | 6,443 | 4,953 | 4,468 | |
| Total debt | 7,199 | 6,447 | 6,452 | 4,953 | 4,468 | |
| Operating lease liabilities, current (in Other current liabilities) | 40 | 35 | — | — | — | |
| Operating lease liabilities, noncurrent | 163 | 164 | — | — | — | |
| Total debt (including operating lease liability) | 7,402 | 6,646 | 6,452 | 4,953 | 4,468 | |
| Total assets | 13,609 | 11,545 | 10,777 | 8,586 | 7,649 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.54 | 0.58 | 0.60 | 0.58 | 0.58 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Abbott Laboratories | 0.27 | 0.28 | 0.29 | 0.37 | 0.42 | |
| AbbVie Inc. | 0.58 | 0.75 | 0.68 | 0.53 | 0.56 | |
| Amgen Inc. | 0.53 | 0.51 | 0.51 | 0.44 | 0.45 | |
| Bristol-Myers Squibb Co. | 0.44 | 0.37 | 0.21 | 0.24 | 0.20 | |
| Eli Lilly & Co. | 0.37 | 0.41 | 0.29 | 0.30 | 0.27 | |
| Gilead Sciences Inc. | 0.47 | 0.41 | 0.43 | 0.48 | 0.46 | |
| Illumina Inc. | 0.25 | 0.26 | 0.29 | 0.25 | 0.30 | |
| Johnson & Johnson | 0.21 | 0.18 | 0.20 | 0.22 | 0.19 | |
| Merck & Co. Inc. | 0.37 | 0.32 | 0.30 | 0.28 | 0.26 | |
| Pfizer Inc. | 0.27 | 0.32 | 0.26 | 0.25 | 0.25 | |
| Regeneron Pharmaceuticals Inc. | 0.16 | 0.05 | 0.06 | 0.08 | 0.07 | |
| Vertex Pharmaceuticals Inc. | 0.08 | 0.08 | 0.09 | 0.16 | 0.28 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals & Biotechnology | 0.37 | 0.36 | 0.32 | 0.32 | 0.31 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.34 | 0.34 | 0.31 | 0.32 | 0.31 | |
Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 7,402 ÷ 13,609 = 0.54
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Zoetis Inc.’s debt to assets ratio (including operating lease liability) improved from 2018 to 2019 and from 2019 to 2020. |
Financial Leverage
Zoetis Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Total assets | 13,609 | 11,545 | 10,777 | 8,586 | 7,649 | |
| Total Zoetis Inc. equity | 3,769 | 2,708 | 2,185 | 1,770 | 1,487 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.61 | 4.26 | 4.93 | 4.85 | 5.14 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Abbott Laboratories | 2.21 | 2.18 | 2.20 | 2.47 | 2.56 | |
| AbbVie Inc. | 11.51 | — | — | 13.89 | 14.26 | |
| Amgen Inc. | 6.69 | 6.17 | 5.31 | 3.17 | 2.60 | |
| Bristol-Myers Squibb Co. | 3.13 | 2.52 | 2.49 | 2.86 | 2.08 | |
| Eli Lilly & Co. | 8.27 | 15.07 | 4.47 | 3.88 | 2.77 | |
| Gilead Sciences Inc. | 3.76 | 2.74 | 2.98 | 3.44 | 3.02 | |
| Illumina Inc. | 1.62 | 1.59 | 1.85 | 1.91 | 1.95 | |
| Johnson & Johnson | 2.76 | 2.65 | 2.56 | 2.61 | 2.01 | |
| Merck & Co. Inc. | 3.62 | 3.26 | 3.09 | 2.56 | 2.38 | |
| Pfizer Inc. | 2.44 | 2.65 | 2.51 | 2.41 | 2.88 | |
| Regeneron Pharmaceuticals Inc. | 1.56 | 1.34 | 1.34 | 1.43 | 1.57 | |
| Vertex Pharmaceuticals Inc. | 1.35 | 1.37 | 1.41 | 1.75 | 2.50 | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals & Biotechnology | 3.34 | 3.18 | 3.08 | 2.89 | 2.67 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.82 | 2.77 | 2.68 | 2.66 | 2.54 | |
Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Financial leverage = Total assets ÷ Total Zoetis Inc. equity
= 13,609 ÷ 3,769 = 3.61
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Zoetis Inc.’s financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020. |
Interest Coverage
Zoetis Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Zoetis | 1,638 | 1,500 | 1,428 | 864 | 821 | |
| Add: Net income attributable to noncontrolling interest | (2) | — | (4) | (2) | (2) | |
| Add: Income tax expense | 360 | 301 | 266 | 663 | 409 | |
| Add: Interest expense, net of capitalized interest | 231 | 223 | 206 | 175 | 166 | |
| Earnings before interest and tax (EBIT) | 2,227 | 2,024 | 1,896 | 1,700 | 1,394 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 9.64 | 9.08 | 9.20 | 9.71 | 8.40 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Abbott Laboratories | 10.10 | 7.09 | 4.48 | 3.47 | 4.28 | |
| AbbVie Inc. | 2.38 | 5.72 | 4.86 | 7.72 | 8.53 | |
| Amgen Inc. | 7.44 | 8.09 | 7.86 | 8.36 | 8.27 | |
| Bristol-Myers Squibb Co. | -3.84 | 8.58 | 33.61 | 27.18 | 36.42 | |
| Eli Lilly & Co. | 21.11 | 14.15 | 14.95 | 10.77 | 19.22 | |
| Gilead Sciences Inc. | 2.70 | 6.19 | 8.24 | 13.10 | 18.74 | |
| Illumina Inc. | 18.47 | 22.50 | 16.68 | 29.19 | 17.91 | |
| Johnson & Johnson | 83.07 | 55.49 | 18.91 | 19.92 | 28.28 | |
| Merck & Co. Inc. | 11.58 | 13.84 | 12.27 | 9.65 | 7.72 | |
| Pfizer Inc. | 6.17 | 12.23 | 10.03 | 10.69 | 8.04 | |
| Regeneron Pharmaceuticals Inc. | 67.97 | 81.43 | 91.55 | 83.75 | 185.82 | |
| Vertex Pharmaceuticals Inc. | 54.60 | 24.84 | 9.28 | 0.77 | 0.17 | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals & Biotechnology | 7.17 | 11.09 | 10.29 | 10.99 | 12.62 | |
| Interest Coverage, Industry | ||||||
| Health Care | 7.98 | 9.95 | 9.71 | 10.14 | 10.74 | |
Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,227 ÷ 231 = 9.64
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Zoetis Inc.’s interest coverage ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Fixed Charge Coverage
Zoetis Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income attributable to Zoetis | 1,638 | 1,500 | 1,428 | 864 | 821 | |
| Add: Net income attributable to noncontrolling interest | (2) | — | (4) | (2) | (2) | |
| Add: Income tax expense | 360 | 301 | 266 | 663 | 409 | |
| Add: Interest expense, net of capitalized interest | 231 | 223 | 206 | 175 | 166 | |
| Earnings before interest and tax (EBIT) | 2,227 | 2,024 | 1,896 | 1,700 | 1,394 | |
| Add: Operating lease expense | 46 | 40 | 45 | 27 | 25 | |
| Earnings before fixed charges and tax | 2,273 | 2,064 | 1,941 | 1,727 | 1,419 | |
| Interest expense, net of capitalized interest | 231 | 223 | 206 | 175 | 166 | |
| Operating lease expense | 46 | 40 | 45 | 27 | 25 | |
| Fixed charges | 277 | 263 | 251 | 202 | 191 | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 8.21 | 7.85 | 7.73 | 8.55 | 7.43 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Abbott Laboratories | 6.68 | 5.14 | 4.48 | 3.47 | 4.28 | |
| AbbVie Inc. | 2.28 | 5.42 | 4.44 | 6.86 | 7.54 | |
| Amgen Inc. | 6.48 | 7.12 | 7.13 | 7.56 | 7.57 | |
| Bristol-Myers Squibb Co. | -3.08 | 7.10 | 20.07 | 17.24 | 19.96 | |
| Eli Lilly & Co. | 15.06 | 10.18 | 8.66 | 5.89 | 9.31 | |
| Gilead Sciences Inc. | 2.45 | 5.46 | 7.58 | 12.26 | 17.36 | |
| Illumina Inc. | 7.44 | 9.22 | 8.98 | 13.57 | 8.11 | |
| Johnson & Johnson | 33.93 | 28.72 | 14.46 | 14.53 | 19.75 | |
| Merck & Co. Inc. | 8.47 | 10.31 | 8.95 | 7.03 | 5.73 | |
| Pfizer Inc. | 4.98 | 9.88 | 8.34 | 8.76 | 6.64 | |
| Vertex Pharmaceuticals Inc. | 39.35 | 20.79 | 7.69 | 0.82 | 0.33 | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals & Biotechnology | 5.90 | 9.00 | 8.63 | 9.13 | 10.29 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 6.14 | 7.68 | 7.66 | 7.99 | 8.46 | |
Based on: 10-K (filing date: 2021-02-16), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-14), 10-K (filing date: 2018-02-15), 10-K (filing date: 2017-02-16).
1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,273 ÷ 277 = 8.21
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Zoetis Inc.’s fixed charge coverage ratio improved from 2018 to 2019 and from 2019 to 2020. |