ZTS · 10-Q · 2026Q2 · Full report
Liquidity and Debt Position
Zoetis Inc. · 2026-08-06 · Importance 70 · Surprise 56 · From source text
Cash and cash equivalents declined 40% to $1,476 million at June 30, 2026, from $2,450 million at December 31, 2025, while long-term debt remained nearly flat at $9,048 million versus $9,042 million. Working capital decreased to $4,295 million from $4,600 million, and the current-assets-to-current-liabilities ratio declined to 3.08:1 from 3.12:1. Zoetis had access to a $1.25 billion senior unsecured revolving credit facility expiring in August 2030, expandable to $1.75 billion subject to conditions, with no amounts drawn. The company was in compliance with its financial covenants and had no borrowings under its additional $46 million of credit lines as of June 30, 2026.
Key facts
- Net cash used in financing activities was $1,653 million for the six months ended June 30, 2026, compared with $1,241 million for the six months ended June 30, 2025. source
- Net decrease in cash and cash equivalents was $(974) million for the six months ended June 30, 2026, compared with $(482) million for the six months ended June 30, 2025. source
- Cash and cash equivalents were $1,476 million as of June 30, 2026 and $2,450 million as of December 31, 2025. source
- Accounts receivable, net were $1,571 million as of June 30, 2026 and $1,409 million as of December 31, 2025. source
- Working capital was $4,295 million as of June 30, 2026 and $4,600 million as of December 31, 2025. source
- Two rating agencies assigned long-term debt ratings: Moody’s A3 with Stable outlook (last action January 2025) and S&P BBB+ with Stable outlook (last action April 2025). source
- As of June 30, 2026, Zoetis had access to $46 million of additional lines of credit which expire at various times and are generally renewed annually, with no borrowings outstanding under these facilities as of June 30, 2026 and December 31, 2025. source
- Ratio of current assets to current liabilities was 3.08:1 as of June 30, 2026 and 3.12:1 as of December 31, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -6.5% | Cash and cash equivalents were $1,476 million as of June 30, 2026 and $2,450 million as of December 31, 2025. |
| cash | negative | realized | -3.3% | Net decrease in cash and cash equivalents was $(974) million for the six months ended June 30, 2026, compared with $(482) million for the… |
| cash | negative | realized | -2.7% | Net cash used in financing activities was $1,653 million for the six months ended June 30, 2026, compared with $1,241 million for the six… |
| assets | negative | realized | -2.0% | Working capital was $4,295 million as of June 30, 2026 and $4,600 million as of December 31, 2025. |
| assets | positive | realized | +1.1% | Accounts receivable, net were $1,571 million as of June 30, 2026 and $1,409 million as of December 31, 2025. |