Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
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
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
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
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
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
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
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
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
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
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 + 53 – 69 = 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. |