Aureus
AExcellent

Zoetis Inc.(ZTS)

A

Financial data as of Dec 31, 2024Stable · Healthcare

FCF Margin24.8%Free Cash Flow / Revenue
Cash Conversion118.8%Operating CF / Net Income
Free Cash Flow$2.3B
Revenue$9.3B
Net Cash-$4.8BNet debt position
Debt / FCF2.9xManageable debt load
Current Ratio1.75Adequate short-term liquidity
YoY FCF Growth+2.7%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (24.8%, 2.9x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (24.8%)
  • Excellent cash conversion (119%)

Concerns

  • Net debt position ($4.8B)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin24.8%
Net Margin26.9%
Operating CF Margin31.9%
CapEx Ratio7.1%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$4.8BNet debt position
Debt / FCF2.9xManageable debt load
Current Ratio1.75Strong liquidity
Debt / Equity1.41Moderate leverage

Quarterly FCF Trend

+2.7% YoYStable (+2.7%)

Free cash flow per quarter

Sector Comparison — Healthcare

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameZoetis Inc.
SectorHealthcare
Free Cash Flow$2.3B
Revenue$9.3B
Net Income$2.5B
Operating Cash Flow$3.0B
Capital Expenditure$655.0M
FCF Margin24.8%
Cash Conversion Rate118.8%
Net Margin26.9%
Total Debt$6.7B
Total Cash$2.0B
Net Cash-$4.8B
Current Ratio1.75
Debt / Equity1.41
Debt / FCF2.9x
YoY FCF Growth+2.7%
Positive Quarters5 of 5
Trend DirectionStable
Report DateDec 31, 2024
GradeA
Data SourceYahoo Finance

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