Zhengye Biotechnology maintains a conservative capital structure characterized by a 0.25 debt-to-equity ratio, which provides a buffer against current market volatility.
| Metric | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Total Current Assets | 177.57M | 205.59M | 214.31M | 164.94M |
| Cash & Short-Term Investments | 20.04M | 16.3M | 9.75M | 6.28M |
| Cash Only | 18.6M | 15.07M | 9.75M | 6.28M |
| Short-Term Investments | 1.43M | 1.22M | 0 | 0 |
| Accounts Receivable | 88.52M | 99.42M | 134.25M | 102.19M |
| Days Sales Outstanding | 173.37 | 171.46 | 188.27 | 174.24 |
| Inventory | 58.22M | 58.3M | 55.42M | 43.62M |
| Days Inventory Outstanding | 223.54 | 260.15 | 189.51 | 179.56 |
| Other Current Assets | 2K | 24.03M | 12.46M | 11.14M |
| Total Non-Current Assets | 315.68M | 294.3M | 305.37M | 280.33M |
| Property, Plant & Equipment | 255.16M | 271.5M | 283.67M | 255.12M |
| Fixed Asset Turnover | 0.73x | 0.78x | 0.92x | 0.84x |
| Goodwill | 0 | 0 | 0 | 0 |
| Intangible Assets | 22.78M | 16.3M | 19.46M | 12.05M |
| Long-Term Investments | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 26.75M | 6.5M | 2.23M | 13.17M |
| Total Assets | 493.25M | 499.89M | 519.67M | 445.28M |
| Asset Turnover | 0.38x | 0.42x | 0.50x | 0.48x |
| Asset Growth % | -1.33% | -3.81% | 16.71% | - |
| Total Current Liabilities | 135.91M | 150.23M | 152.23M | 125.63M |
| Accounts Payable | 42.96M | 45.66M | 79.28M | 77.57M |
| Days Payables Outstanding | 164.95 | 203.75 | 271.06 | 319.28 |
| Short-Term Debt | 81.63M | 79.86M | 54.89M | 30M |
| Deferred Revenue (Current) | 3.69M | 3.98M | 4.7M | 4.28M |
| Other Current Liabilities | 3.28M | 0 | 0 | 0 |
| Current Ratio | 1.31x | 1.37x | 1.41x | 1.31x |
| Quick Ratio | 0.88x | 0.98x | 1.04x | 0.97x |
| Cash Conversion Cycle | 231.97 | 227.86 | 106.72 | 34.52 |
| Total Non-Current Liabilities | 4.8M | 10.38M | 10.58M | 816K |
| Long-Term Debt | 4.8M | 9.99M | 9.99M | 0 |
| Capital Lease Obligations | 0 | 0 | 0 | 0 |
| Deferred Tax Liabilities | 0 | 0 | 0 | 0 |
| Other Non-Current Liabilities | 0 | 393K | 590K | 816K |
| Total Liabilities | 140.71M | 160.62M | 162.81M | 126.44M |
| Total Debt | 86.43M | 89.85M | 64.88M | 30M |
| Net Debt | 67.83M | 74.78M | 55.13M | 23.72M |
| Debt / Equity | 0.25x | 0.26x | 0.18x | 0.09x |
| Debt / EBITDA | 2.13x | 1.30x | 0.77x | 0.44x |
| Net Debt / EBITDA | 1.67x | 1.09x | 0.65x | 0.35x |
| Interest Coverage | 4.07x | 10.17x | 23.19x | 50.08x |
| Total Equity | 352.54M | 339.27M | 356.87M | 318.84M |
| Equity Growth % | 3.91% | -4.93% | 11.93% | - |
| Book Value per Share | 7.72 | - | - | - |
| Total Shareholders' Equity | 283.96M | 272.85M | 296.5M | 267.47M |
| Common Stock | 8K | 8K | 8K | 8K |
| Retained Earnings | 48.15M | 38.38M | 65.77M | 42.33M |
| Treasury Stock | 0 | 0 | 0 | 0 |
| Accumulated OCI | 32.65M | 31.31M | 27.57M | 21.99M |
| Minority Interest | 68.58M | 66.42M | 60.37M | 51.36M |
Swine cycle demand volatility
As indicated by the company's financial profile, ZYBT maintains a conservative capital structure with a debt-to-equity ratio of 0.25%, which provides a defensive buffer against the recent 11.95% revenue contraction that has challenged the firm's ability to sustain historical growth trajectories in the veterinary vaccine market.
The company's low leverage suggests a strategic preference for financial stability, likely intended to weather the cyclical nature of the Chinese swine industry. However, this conservative stance may also reflect a lack of aggressive investment in new product lines, which warrants further investigation into whether the firm is prioritizing preservation over long-term market share expansion.
Based on reported figures, ZYBT operates with a debt-to-equity ratio of 0.25%, suggesting that the firm is largely insulated from interest rate volatility and does not rely on external financing to maintain its specialized biological manufacturing facilities in the Jilin region of Northeast China.
This minimal reliance on debt appears to be a deliberate management choice to mitigate risks associated with the lumpy cash flow inherent in government procurement contracts. Investors should monitor whether this low-leverage profile remains a permanent feature or if the company will eventually need to tap credit markets to fund necessary R&D or facility upgrades.
According to internal company intelligence, ZYBT holds approximately $18.6 million in cash, providing a critical liquidity buffer that supports the firm's ongoing operations despite the recent revenue decline and the extended payment cycles typical of provincial government procurement tenders in the domestic agricultural sector.
The presence of this cash reserve appears to be the primary defense against the volatility of the swine cycle, allowing the company to maintain its P3 laboratory certifications without immediate liquidity concerns. However, the effectiveness of this buffer depends on the company's ability to manage its working capital efficiently as it navigates a period of contracting top-line performance.
While the balance sheet appears healthy due to low debt, the reliance on specialized P3 laboratory assets and potential aging accounts receivable suggests that the firm's true liquidity may be less flexible than the headline cash position implies, based on standard industry accounting nuances.
The high fixed-cost nature of these biological assets means that a significant portion of the company's value is tied to regulatory compliance and specialized infrastructure that cannot be easily liquidated. Investors should be cautious that the reported cash position may be partially offset by the need to fund ongoing maintenance capital expenditures to keep these critical facilities operational.
Quick answers to the most common questions about buying ZYBT stock.
As of 2024, Zhengye Biotechnology Holding Limited (ZYBT) had total assets of $493.2M including $177.6M in current assets.
Zhengye Biotechnology Holding Limited (ZYBT) carries total debt of $86.4M, offset by $20.0M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Zhengye Biotechnology Holding Limited (ZYBT) has total shareholders' equity (book value) of $284.0M ($7.72 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Zhengye Biotechnology Holding Limited (ZYBT) reported a current ratio of 1.31x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.