Zebra Technologies Corporation (ZBRA)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.11 | 4.23 | 4.37 | 4.77 | 5.05 | 5.34 | 6.91 | 9.09 | 8.38 | 9.03 | 7.77 | 6.66 | 6.61 | 6.87 | 6.42 | 7.63 | 7.14 | 7.12 | 6.85 | 6.40 | |
| DOH | days | 88.77 | 86.29 | 83.45 | 76.54 | 72.23 | 68.40 | 52.80 | 40.14 | 43.54 | 40.40 | 46.98 | 54.78 | 55.20 | 53.13 | 56.90 | 47.82 | 51.16 | 51.24 | 53.28 | 57.01 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.11
= 88.77
The days of inventory on hand (DOH) for Zebra Technologies Corp. have shown a general increasing trend over the past eight quarters, indicating a potential inefficiency in managing inventory levels. In Q1 2022, the company had 55.19 days of inventory on hand, which then steadily increased to 119.24 days by Q4 2023.
The significant rise in DOH suggests that Zebra Technologies Corp. may be carrying excess inventory relative to its sales volume, potentially tying up capital that could be deployed elsewhere more efficiently. The longer inventory remains on hand, the higher the risk of obsolescence, storage costs, and decreased liquidity.
The firm should carefully monitor and evaluate its inventory management practices to optimize working capital and improve operational efficiency. Actions such as adjusting production levels, refining demand forecasting, and enhancing supply chain logistics could help minimize excess inventory and bring DOH to more optimal levels.
Peer comparison
Dec 31, 2023