Zebra Technologies Corporation (ZBRA)

Days of inventory on hand (DOH)

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
DOH days 67.56 80.27 71.70 43.15 54.66

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.40
= 67.56

The days of inventory on hand (DOH) for Zebra Technologies Corporation has fluctuated over the past five years. In December 2020, the company held inventory for an average of 54.66 days before it was sold. This number decreased to 43.15 days by December 2021, indicating an improvement in inventory turnover efficiency. However, there was a significant increase in DOH to 71.70 days by December 2022, and a further rise to 80.27 days by December 2023, suggesting a potential issue with inventory management or slow-moving inventory.

By December 2024, the DOH decreased to 67.56 days, but remained above the levels seen in 2020 and 2021. These fluctuations in DOH indicate varying levels of efficiency in managing inventory levels and the potential need for Zebra Technologies Corporation to focus on optimizing its supply chain and inventory control processes to ensure a balanced level of inventory that meets customer demand while minimizing carrying costs.