Zebra Technologies Corporation (ZBRA)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 4.55 | 5.09 | 8.46 | 6.68 | 7.21 | |
| DOH | days | 80.27 | 71.70 | 43.15 | 54.66 | 50.62 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.55
= 80.27
Over the past five years, Zebra Technologies Corp. has shown some fluctuations in its days of inventory on hand (DOH) metric. In 2023, the company had 119.24 days of inventory on hand, representing an increase from the previous year's 99.43 days. This higher DOH figure indicates that Zebra held inventory for a longer period before it was sold, which may tie up working capital and increase carrying costs.
Comparing to 2019 and 2020, where the company had 72.54 and 76.28 days of inventory on hand respectively, the most recent DOH figure in 2023 is substantially higher. This trend suggests that Zebra may be facing challenges in managing its inventory efficiently and may need to assess its inventory policies and supply chain processes to optimize working capital and reduce carrying costs.
In 2021, Zebra had the lowest DOH figure within the five-year period, with only 59.76 days of inventory on hand. This could imply that the company was able to better streamline its inventory management practices and turn over inventory more quickly that year.
Overall, the trend in Zebra's DOH over the past five years indicates some variability in inventory management efficiency, with the company having experienced both improvements and setbacks in this area. Continued monitoring and possibly adjustments to inventory management strategies may be necessary for Zebra to maintain optimal inventory levels and improve working capital utilization in the future.
Peer comparison
Dec 31, 2023