Zebra Technologies Corporation (ZBRA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.40 | 4.55 | 5.09 | 8.46 | 6.68 |
| Receivables turnover | 7.00 | 7.85 | 7.28 | 7.39 | 8.32 |
| Payables turnover | 5.91 | 8.02 | 5.40 | 5.93 | 5.68 |
| Working capital turnover | 6.77 | 61.92 | — | — | — |
Zebra Technologies Corporation's inventory turnover ratio has shown fluctuations over the years, decreasing from 6.68 in 2020 to 4.55 in 2023 before slightly increasing to 5.40 in 2024. This indicates that the company is now turning over its inventory less frequently compared to earlier years.
In terms of receivables turnover, Zebra Technologies Corporation has maintained a relatively stable performance with values ranging between 7.00 and 8.32 during the period from 2020 to 2024. This implies that the company is efficient in collecting payments from its customers.
The payables turnover ratio for Zebra Technologies Corporation has also varied, with a significant increase in 2023 to 8.02, indicating that the company took longer to pay its suppliers in that year compared to other years. However, the ratio returned to a more typical level of 5.91 in 2024.
Regarding the working capital turnover ratio, data is unavailable for the years 2020 to 2022, but in 2023, there was a substantial increase to 61.92, suggesting that Zebra Technologies Corporation efficiently utilized its working capital during that year. However, this ratio dropped significantly to 6.77 in 2024, indicating a decrease in the company's ability to generate revenue from its working capital.
Overall, these activity ratios provide insights into Zebra Technologies Corporation's management of inventory, receivables, payables, and working capital, highlighting areas of efficiency and areas for potential improvement in the company's operations.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 67.56 | 80.27 | 71.70 | 43.15 | 54.66 |
| Days of sales outstanding (DSO) | days | 52.12 | 46.52 | 50.16 | 49.37 | 43.88 |
| Number of days of payables | days | 61.71 | 45.53 | 67.61 | 61.52 | 64.29 |
Zebra Technologies Corporation's activity ratios indicate the efficiency of its operations in managing inventory, collecting receivables, and paying its suppliers.
1. Days of Inventory on Hand (DOH): The company's DOH decreased from 54.66 days in 2020 to 43.15 days in 2021, indicating improved efficiency in managing inventory levels. However, there was a significant increase in 2023 to 80.27 days, which suggests potential issues with inventory management. The ratio decreased to 67.56 days in 2024, but it still remains relatively high compared to previous years.
2. Days of Sales Outstanding (DSO): Zebra's DSO increased from 43.88 days in 2020 to 49.37 days in 2021, indicating a slight delay in collecting receivables. The ratio remained relatively stable around 50 days in the following years, suggesting consistent collection practices.
3. Number of Days of Payables: The days of payables decreased from 64.29 days in 2020 to 45.53 days in 2023, indicating a more efficient payment system with suppliers. However, the days of payables increased slightly to 61.71 days in 2024, which could suggest delayed payments to suppliers.
Overall, Zebra Technologies Corporation should monitor its inventory levels closely to optimize efficiency, maintain consistent collection practices, and ensure timely payments to suppliers to improve its working capital management and overall performance.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 16.35 | 14.83 | 20.78 | 20.66 | 15.91 |
| Total asset turnover | 0.63 | 0.63 | 0.77 | 0.90 | 0.81 |
From the data provided, we can observe notable trends in Zebra Technologies Corporation's long-term activity ratios:
1. Fixed Asset Turnover: This ratio indicates how efficiently the company generates sales revenue from its fixed assets. Zebra's fixed asset turnover has shown an increasing trend over the years, from 15.91 in 2020 to 16.35 in 2024. This suggests that the company has been able to utilize its fixed assets more effectively to generate sales.
2. Total Asset Turnover: The total asset turnover ratio measures the efficiency with which the company uses its total assets to generate sales. Zebra's total asset turnover ratio started at 0.81 in 2020, increased to 0.90 in 2021, but then decreased to 0.63 in both 2023 and 2024. The declining trend indicates a potential decrease in the company's ability to generate sales in proportion to its total assets.
Overall, while Zebra Technologies Corporation has been able to improve its efficiency in utilizing fixed assets to generate sales, there seems to be a concerning trend of declining efficiency in utilizing total assets for revenue generation. Further analysis would be needed to understand the specific factors contributing to these changes and their implications for the company's long-term performance.