Stock Analysis on Net

Zoetis Inc. (NYSE:ZTS)

This company has been moved to the archive! The financial data has not been updated since May 5, 2022.

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Zoetis Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Inventory turnover 1.20 1.26 1.41 1.37 1.24
Receivables turnover 6.86 6.59 5.76 5.62 5.32
Payables turnover 5.28 4.50 6.62 6.11 6.80
Working capital turnover 1.51 1.50 2.13 1.83 1.70
Average No. Days
Average inventory processing period 305 289 258 266 293
Add: Average receivable collection period 53 55 63 65 69
Operating cycle 358 344 321 331 362
Less: Average payables payment period 69 81 55 60 54
Cash conversion cycle 289 263 266 271 308

Based on: 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Zoetis Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. Zoetis Inc. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Zoetis Inc. payables turnover ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Zoetis Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Zoetis Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Zoetis Inc. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Zoetis Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Zoetis Inc. number of days of payables outstanding increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Zoetis Inc. cash conversion cycle improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Inventory Turnover

Zoetis Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of sales 2,303 2,057 1,992 1,911 1,775
Inventories 1,923 1,628 1,410 1,391 1,427
Short-term Activity Ratio
Inventory turnover1 1.20 1.26 1.41 1.37 1.24
Benchmarks
Inventory Turnover, Competitors2
AbbVie Inc. 5.58 4.65 4.10
Amgen Inc. 1.58 1.58 1.22
Bristol-Myers Squibb Co. 4.74 5.68 1.88
Eli Lilly & Co. 1.88 1.38 1.48
Gilead Sciences Inc. 4.08 2.72 5.07
Johnson & Johnson 2.87 3.04 3.05
Merck & Co. Inc. 2.29 2.45 2.36
Pfizer Inc. 3.40 1.08 1.23
Regeneron Pharmaceuticals Inc. 1.25 0.58 0.55
Thermo Fisher Scientific Inc. 3.88 4.02 4.22
Vertex Pharmaceuticals Inc. 2.56 2.62 3.27
Inventory Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 3.05 2.54 2.30
Inventory Turnover, Industry
Health Care 11.04 9.94 10.06

Based on: 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).

1 2021 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 2,303 ÷ 1,923 = 1.20

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Zoetis Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Receivables Turnover

Zoetis Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Revenue 7,776 6,675 6,260 5,825 5,307
Accounts receivable, less allowance for doubtful accounts 1,133 1,013 1,086 1,036 998
Short-term Activity Ratio
Receivables turnover1 6.86 6.59 5.76 5.62 5.32
Benchmarks
Receivables Turnover, Competitors2
AbbVie Inc. 5.63 5.19 6.13
Amgen Inc. 4.96 5.36 5.47
Bristol-Myers Squibb Co. 5.65 5.72 3.89
Eli Lilly & Co. 4.24 4.18 4.91
Gilead Sciences Inc. 6.01 4.98 6.18
Johnson & Johnson 6.14 6.08 5.67
Merck & Co. Inc. 5.28 6.11 6.91
Pfizer Inc. 7.08 5.28 5.93
Regeneron Pharmaceuticals Inc. 2.66 2.07 2.94
Thermo Fisher Scientific Inc. 4.92 5.61 5.87
Vertex Pharmaceuticals Inc. 6.66 7.01 6.57
Receivables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.49 5.32 5.56
Receivables Turnover, Industry
Health Care 9.51 9.58 9.88

Based on: 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).

1 2021 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, less allowance for doubtful accounts
= 7,776 ÷ 1,133 = 6.86

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Zoetis Inc. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Payables Turnover

Zoetis Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of sales 2,303 2,057 1,992 1,911 1,775
Accounts payable 436 457 301 313 261
Short-term Activity Ratio
Payables turnover1 5.28 4.50 6.62 6.11 6.80
Benchmarks
Payables Turnover, Competitors2
AbbVie Inc. 6.05 6.76 5.12
Amgen Inc. 4.72 4.33 3.18
Bristol-Myers Squibb Co. 3.37 4.34 3.30
Eli Lilly & Co. 4.38 3.41 3.36
Gilead Sciences Inc. 9.36 5.42 6.56
Johnson & Johnson 2.70 2.99 3.23
Merck & Co. Inc. 2.96 3.37 3.78
Pfizer Inc. 5.53 2.02 2.42
Regeneron Pharmaceuticals Inc. 4.32 2.36 1.87
Thermo Fisher Scientific Inc. 6.83 7.45 7.40
Vertex Pharmaceuticals Inc. 4.64 4.75 6.25
Payables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.21 3.79 3.67
Payables Turnover, Industry
Health Care 7.67 7.52 8.05

Based on: 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).

1 2021 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 2,303 ÷ 436 = 5.28

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Zoetis Inc. payables turnover ratio decreased from 2019 to 2020 but then slightly increased from 2020 to 2021.

Working Capital Turnover

Zoetis Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current assets 6,930 6,611 4,748 4,399 4,217
Less: Current liabilities 1,797 2,170 1,806 1,223 1,094
Working capital 5,133 4,441 2,942 3,176 3,123
 
Revenue 7,776 6,675 6,260 5,825 5,307
Short-term Activity Ratio
Working capital turnover1 1.51 1.50 2.13 1.83 1.70
Benchmarks
Working Capital Turnover, Competitors2
AbbVie Inc. 0.98
Amgen Inc. 3.37 2.55 3.96
Bristol-Myers Squibb Co. 3.95 3.72 2.28
Eli Lilly & Co. 8.33 4.93 11.54
Gilead Sciences Inc. 8.54 5.30 1.08
Johnson & Johnson 5.95 9.44 8.81
Merck & Co. Inc. 7.62 109.83 8.90
Pfizer Inc. 4.78 4.58
Regeneron Pharmaceuticals Inc. 1.59 1.20 1.41
Thermo Fisher Scientific Inc. 5.87 2.76 4.48
Vertex Pharmaceuticals Inc. 1.02 0.99 1.19
Working Capital Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.75 5.50 3.51
Working Capital Turnover, Industry
Health Care 13.56 13.45 8.95

Based on: 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).

1 2021 Calculation
Working capital turnover = Revenue ÷ Working capital
= 7,776 ÷ 5,133 = 1.51

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Zoetis Inc. working capital turnover ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021.

Average Inventory Processing Period

Zoetis Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Inventory turnover 1.20 1.26 1.41 1.37 1.24
Short-term Activity Ratio (no. days)
Average inventory processing period1 305 289 258 266 293
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
AbbVie Inc. 65 79 89
Amgen Inc. 231 231 300
Bristol-Myers Squibb Co. 77 64 194
Eli Lilly & Co. 194 265 247
Gilead Sciences Inc. 89 134 72
Johnson & Johnson 127 120 119
Merck & Co. Inc. 159 149 155
Pfizer Inc. 107 338 296
Regeneron Pharmaceuticals Inc. 292 625 661
Thermo Fisher Scientific Inc. 94 91 87
Vertex Pharmaceuticals Inc. 143 139 112
Average Inventory Processing Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 120 144 159
Average Inventory Processing Period, Industry
Health Care 33 37 36

Based on: 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).

1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.20 = 305

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Zoetis Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Receivable Collection Period

Zoetis Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Receivables turnover 6.86 6.59 5.76 5.62 5.32
Short-term Activity Ratio (no. days)
Average receivable collection period1 53 55 63 65 69
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AbbVie Inc. 65 70 60
Amgen Inc. 74 68 67
Bristol-Myers Squibb Co. 65 64 94
Eli Lilly & Co. 86 87 74
Gilead Sciences Inc. 61 73 59
Johnson & Johnson 59 60 64
Merck & Co. Inc. 69 60 53
Pfizer Inc. 52 69 62
Regeneron Pharmaceuticals Inc. 137 177 124
Thermo Fisher Scientific Inc. 74 65 62
Vertex Pharmaceuticals Inc. 55 52 56
Average Receivable Collection Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 66 69 66
Average Receivable Collection Period, Industry
Health Care 38 38 37

Based on: 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).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.86 = 53

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Zoetis Inc. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021.

Operating Cycle

Zoetis Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 305 289 258 266 293
Average receivable collection period 53 55 63 65 69
Short-term Activity Ratio
Operating cycle1 358 344 321 331 362
Benchmarks
Operating Cycle, Competitors2
AbbVie Inc. 130 149 149
Amgen Inc. 305 299 367
Bristol-Myers Squibb Co. 142 128 288
Eli Lilly & Co. 280 352 321
Gilead Sciences Inc. 150 207 131
Johnson & Johnson 186 180 183
Merck & Co. Inc. 228 209 208
Pfizer Inc. 159 407 358
Regeneron Pharmaceuticals Inc. 429 802 785
Thermo Fisher Scientific Inc. 168 156 149
Vertex Pharmaceuticals Inc. 198 191 168
Operating Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences 186 213 225
Operating Cycle, Industry
Health Care 71 75 73

Based on: 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).

1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 305 + 53 = 358

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Zoetis Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Payables Payment Period

Zoetis Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Payables turnover 5.28 4.50 6.62 6.11 6.80
Short-term Activity Ratio (no. days)
Average payables payment period1 69 81 55 60 54
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
AbbVie Inc. 60 54 71
Amgen Inc. 77 84 115
Bristol-Myers Squibb Co. 108 84 110
Eli Lilly & Co. 83 107 109
Gilead Sciences Inc. 39 67 56
Johnson & Johnson 135 122 113
Merck & Co. Inc. 123 108 97
Pfizer Inc. 66 181 151
Regeneron Pharmaceuticals Inc. 84 155 195
Thermo Fisher Scientific Inc. 53 49 49
Vertex Pharmaceuticals Inc. 79 77 58
Average Payables Payment Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 87 96 99
Average Payables Payment Period, Industry
Health Care 48 49 45

Based on: 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).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.28 = 69

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Zoetis Inc. number of days of payables outstanding increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Cash Conversion Cycle

Zoetis Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Average inventory processing period 305 289 258 266 293
Average receivable collection period 53 55 63 65 69
Average payables payment period 69 81 55 60 54
Short-term Activity Ratio
Cash conversion cycle1 289 263 266 271 308
Benchmarks
Cash Conversion Cycle, Competitors2
AbbVie Inc. 70 95 78
Amgen Inc. 228 215 252
Bristol-Myers Squibb Co. 34 44 178
Eli Lilly & Co. 197 245 212
Gilead Sciences Inc. 111 140 75
Johnson & Johnson 51 58 70
Merck & Co. Inc. 105 101 111
Pfizer Inc. 93 226 207
Regeneron Pharmaceuticals Inc. 345 647 590
Thermo Fisher Scientific Inc. 115 107 100
Vertex Pharmaceuticals Inc. 119 114 110
Cash Conversion Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences 99 117 126
Cash Conversion Cycle, Industry
Health Care 23 26 28

Based on: 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).

1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 305 + 5369 = 289

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Zoetis Inc. cash conversion cycle improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.