ZTS · 10-Q · 2026Q3 · Full report

Liquidity and Debt Position

Zoetis Inc. · 2026-11-05 · Importance 34 · Surprise 14

At September 30, 2026, Zoetis had $1,333 million of cash and cash equivalents and $8,299 million of long-term debt, compared with $2,450 million and $9,042 million, respectively, at December 31, 2025. Working capital declined from $4,600 million to $3,611 million, and the current ratio fell from 3.12:1 to 2.35:1. Zoetis reported that it was in compliance with its credit-facility covenants and had no amounts drawn under the $1.25 billion revolving facility, which was extended in August 2026 to mature on August 27, 2031. The facility permits an increase to $1.75 billion subject to conditions and requires a maximum total leverage ratio of 3.50:1, rising to 4.00:1 following a material acquisition.

Key facts

• Zoetis issued $850 million of 4.150% senior notes due 2028 and $1.00 billion of 5.000% senior notes due 2035 on August 18, 2025. source
• Zoetis entered into a $1.25 billion senior unsecured revolving credit facility in August 2025, with a maturity date that was extended in August 2026 to August 27, 2031. source
• Zoetis used the proceeds from its 2025 senior notes to redeem $600 million of 5.400% 2022 notes due 2025 on August 28, 2025, and $750 million of 4.500% 2015 notes due 2025 on September 17, 2025. source
• At September 30, 2026, Zoetis had cash and cash equivalents of $1,333 million, accounts receivable of $1,692 million, long-term debt of $8,299 million, working capital of $3,611 million, and a current-assets-to-current-liabilities ratio of 2.35:1. source
• Subject to certain conditions, Zoetis may increase its revolving credit facility to up to $1.75 billion. source
• Zoetis identified failure to generate sufficient cash to service its substantial indebtedness as a risk. source
• The revolving credit facility requires Zoetis to maintain a maximum total leverage ratio of 3.50:1, increasing to 4.00:1 after a material acquisition through the fourth full consecutive fiscal quarter following its completion. source
• Zoetis stated that cash on hand, operating cash flows and existing financing arrangements are expected to be sufficient to support cash needs for the next twelve months and beyond, subject to the operating environment. source