The company has improved its capital structure by lowering the debt-to-equity ratio from 1.66 in 2021Q4 to 0.89 in 2025Q4, while simultaneously expanding its net property, plant, and equipment to $863.3 million.
Ermenegildo Zegna N.V. (ZGN) balance sheet — 8-year assets, liabilities & shareholders' equity history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Total Current Assets | 1.2B | 1.19B | 1.21B | 1.29B | 1.29B | 1.38B | 1.24B | 1.25B | 1.37B |
| Cash & Short-Term Investments | 294.44M | 295.68M | 296.13M | 387.03M | 572.99M | 800.17M | 667.45M | 595.06M | 763.21M |
| Cash Only | 226.62M | 220.03M | 219.13M | 296.28M | 254.32M | 459.79M | 317.29M | 210.63M | 218.33M |
| Short-Term Investments | 67.81M | 75.65M | 77M | 90.75M | 318.67M | 340.38M | 350.16M | 384.43M | 544.88M |
| Accounts Receivable | 227.06M | 260.38M | 281.56M | 240.46M | 177.21M | 160.36M | 138.83M | 178.22M | 161.71M |
| Days Sales Outstanding | 23.71 | 51.61 | 52.79 | 46.08 | 43.33 | 45.29 | 49.67 | 49.23 | 49.91 |
| Inventory | 544.52M | 506.69M | 521.01M | 522.59M | 410.85M | 338.48M | 321.47M | 78.65M | 314.36M |
| Days Inventory Outstanding | 126.32 | 226.34 | 292.53 | 280.41 | 265.5 | 251.3 | 243.33 | 73.7 | 381.49 |
| Other Current Assets | 132.23M | 126.97M | 107.45M | 137.56M | 124.6M | 580.13M | 111.4M | 380.46M | 126.69M |
| Total Non-Current Assets | 1.89B | 1.64B | 1.63B | 1.48B | 1.14B | 1.07B | 1.18B | 1.39B | 1.42B |
| Property, Plant & Equipment | 1.07B | 863.32M | 786.24M | 694.13M | 501.65M | 481.94M | 595.77M | 734.98M | 771.86M |
| Fixed Asset Turnover | 4.41x | 2.13x | 2.48x | 2.74x | 2.98x | 2.68x | 1.71x | 1.80x | 1.53x |
| Goodwill | 252.11M | 247.13M | 275.63M | 256.27M | 239.71M | 227.23M | 208.88M | 226.06M | 213.72M |
| Intangible Assets | 309.79M | 306.72M | 338.73M | 316M | 216.2M | 197.99M | 178.97M | 193.92M | 190.05M |
| Long-Term Investments | 247.18M | 62.65M | 59.59M | 51.55M | 53.42M | 54.1M | 69.42M | 81.88M | 120.63M |
| Other Non-Current Assets | 3 | 3 | 1.58M | 160.77M | 5.47M | 3.72M | 50.95M | 96.32M | 54.72M |
| Total Assets | 3.09B | 2.83B | 2.83B | 2.77B | 2.43B | 2.46B | 2.42B | 2.64B | 2.79B |
| Asset Turnover | 1.36x | 0.65x | 0.69x | 0.69x | 0.62x | 0.53x | 0.42x | 0.50x | 0.42x |
| Asset Growth % | 13.67% | -0.02% | 2.42% | 14.02% | -1.26% | 1.77% | -8.5% | -5.53% | - |
| Total Current Liabilities | 816.09M | 750.07M | 852.88M | 1.01B | 866.98M | 702.32M | 535.45M | 607.38M | 648.53M |
| Accounts Payable | 316.93M | 256.02M | 248.6M | 261.1M | 220.79M | 177.8M | 150.26M | 190.4M | 228.97M |
| Days Payables Outstanding | 70.82 | 114.37 | 139.58 | 140.1 | 142.68 | 132.01 | 113.74 | 178.42 | 277.86 |
| Short-Term Debt | 243.05M | 84.07M | 177.17M | 289.34M | 286.18M | 157.29M | 106.03M | 120.28M | 142.85M |
| Deferred Revenue (Current) | 77.23M | 7.95M | 69.27M | 834.46K | 57.8M | 48.83M | 39.71M | 36.83M | 36.94M |
| Other Current Liabilities | 219.22M | 206.75M | 62.66M | 172.47M | 96.14M | 107.3M | 47.39M | 46.37M | 134.52M |
| Current Ratio | 1.47x | 1.59x | 1.41x | 1.27x | 1.48x | 1.97x | 2.31x | 2.05x | 2.12x |
| Quick Ratio | 0.80x | 0.91x | 0.80x | 0.76x | 1.01x | 1.49x | 1.71x | 1.92x | 1.64x |
| Cash Conversion Cycle | 79.21 | 163.59 | 205.74 | 186.39 | 166.15 | 164.58 | 179.27 | -55.49 | 153.54 |
| Total Non-Current Liabilities | 1.16B | 984.82M | 998.2M | 853.99M | 827.42M | 1.11B | 1.23B | 1.3B | 1.42B |
| Long-Term Debt | 128.09M | 162.05M | 196.4M | 113.28M | 184.88M | 471.65M | 563.01M | 521.82M | 619.95M |
| Capital Lease Obligations | 2.44B | 590.4M | 518.73M | 471.08M | 332.05M | 331.41M | 314.85M | 405.64M | 443.07M |
| Deferred Tax Liabilities | 317.71M | 76M | 78.13M | 73.89M | 60.53M | 61.23M | 70.73M | 76.15M | 75.17M |
| Other Non-Current Liabilities | 162.29M | 156.36M | 204.94M | 195.74M | 249.96M | 254.21M | 3.78M | 0 | 207.75M |
| Total Liabilities | 1.98B | 1.73B | 1.85B | 1.87B | 1.69B | 1.81B | 1.77B | 1.91B | 2.07B |
| Total Debt | 1.15B | 977.36M | 1.04B | 996.35M | 914.56M | 1.07B | 1.08B | 1.15B | 1.31B |
| Net Debt | 924.9M | 757.33M | 816.12M | 700.07M | 660.24M | 607.2M | 759.43M | 939.63M | 1.09B |
| Debt / Equity | 1.04x | 0.89x | 1.05x | 1.11x | 1.25x | 1.66x | 1.67x | 1.58x | 1.81x |
| Debt / EBITDA | 1.76x | 2.49x | 2.57x | 2.48x | 2.86x | 17.73x | 7.50x | 4.33x | 5.13x |
| Net Debt / EBITDA | 1.42x | 1.93x | 2.03x | 1.74x | 2.07x | 10.09x | 5.29x | 3.54x | 4.28x |
| Interest Coverage | 3.76x | 3.68x | 4.29x | 6.51x | 10.21x | -5.97x | -0.93x | 4.69x | 4.92x |
| Total Equity | 1.11B | 1.1B | 982.89M | 900.95M | 732.32M | 644.3M | 645.03M | 729.75M | 725.49M |
| Equity Growth % | 41.65% | 11.77% | 9.1% | 23.03% | 13.66% | -0.11% | -11.61% | 0.59% | - |
| Book Value per Share | 4.11 | 4.20 | 3.87 | 3.57 | 3.04 | 3.17 | 2.90 | 3.01 | 2.99 |
| Total Shareholders' Equity | 1.04B | 1.03B | 916.12M | 840.29M | 678.95M | 601.21M | 601.76M | 688.77M | 691.28M |
| Common Stock | 9.15M | 9.15M | 9.15M | 9.15M | 5.94M | 5.94M | 4.3M | 1.07M | 4.3M |
| Retained Earnings | 730.69M | 739.31M | 668.73M | 640.99M | 528.32M | 498.59M | 893.24M | 944.49M | 936.55M |
| Treasury Stock | -281.68M | -287.08M | -418.35M | -436.62M | -451.17M | -455M | -76.62M | 0 | 0 |
| Accumulated OCI | -203.19M | -213.06M | -126.01M | -133.68M | -125.32M | -244.49M | -295.77M | -180.71M | -249.58M |
| Minority Interest | 73.21M | 68.04M | 66.77M | 60.65M | 53.37M | 43.09M | 43.27M | 40.98M | 34.21M |
Quick answers to the most common questions about buying ZGN stock.
As of 2025, Ermenegildo Zegna N.V. (ZGN) had total assets of $2.83B including $1.19B in current assets.
Ermenegildo Zegna N.V. (ZGN) carries total debt of $977.4M, offset by $295.7M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Ermenegildo Zegna N.V. (ZGN) has total shareholders' equity (book value) of $1.03B ($4.20 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Ermenegildo Zegna N.V. (ZGN) reported a current ratio of 1.59x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.
Key Metrics
Top Statement Risk
China luxury market exposure
Balance Sheet Strengthening Through Deleveraging
As reported in recent financial filings, ZGN has successfully reduced its debt-to-equity ratio from a peak of 1.66 in 2021Q4 to 0.89 by 2025Q4, signaling a deliberate shift toward a more conservative capital structure despite the ongoing integration of the Tom Ford Fashion business.
The consistent reduction in leverage suggests management is prioritizing balance sheet resilience during a period of macro uncertainty. This trend appears to provide the company with greater financial flexibility to navigate the current retail downturn without the immediate pressure of aggressive debt servicing.
Strategic Leverage Amidst Operational Transition
Based on the company's reported figures, total debt has remained relatively stable near $1 billion over the last ten quarters, indicating that the firm is managing its capital structure with a focus on long-term stability rather than rapid, debt-fueled expansion of its retail footprint.
While the absolute debt level remains flat, the improvement in the debt-to-equity ratio is primarily driven by the accumulation of retained earnings. Investors should monitor whether this debt load remains manageable if the current revenue contraction persists and limits the company's ability to generate internal cash.
Asset Base Reflects Manufacturing Commitment
According to quarterly balance sheet data, ZGN's net property, plant, and equipment has grown from $481.9 million in 2021Q4 to $863.3 million in 2025Q4, underscoring the company's heavy investment in its proprietary textile manufacturing capabilities and the expansion of its direct-to-consumer retail estate.
This asset-heavy profile distinguishes ZGN from pure-play luxury brands that outsource production, suggesting a structural commitment to quality control. However, the increasing concentration in fixed assets may heighten the company's sensitivity to operating leverage if retail footfall in key markets like China continues to decline.
Liquidity Buffer Supports Operational Continuity
As indicated by the latest financial statements, ZGN maintains a current ratio of 1.59 as of 2025Q4, which provides a sufficient buffer against short-term shocks despite the cash-intensive nature of managing global inventory and the ongoing integration of new luxury brand licenses.
The liquidity position appears adequate to support current operations, though the fluctuation in cash balances suggests that working capital requirements remain a primary driver of cash volatility. Maintaining this ratio is critical for the company to sustain its brand elevation strategy without resorting to dilutive financing.