Zebra Technologies Corporation (ZBRA)

Days of inventory on hand (DOH)

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Inventory turnover 5.26 5.47 4.91 4.50 4.60 4.74 5.14 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
DOH days 69.41 66.71 74.31 81.07 79.34 77.05 70.94 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

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.26
= 69.41

The days of inventory on hand (DOH) for Zebra Technologies Corporation fluctuated over the periods analyzed. From December 31, 2019 to June 30, 2021, there was a generally declining trend in DOH, indicating that the company was more efficient in managing its inventory during this time. This efficiency is typically seen as positive, as lower DOH values suggest faster inventory turnover and better liquidity.

However, starting from September 30, 2021, there was an uptick in DOH, reaching a peak of 81.07 days on December 31, 2023. This increase may suggest potential issues with inventory management, such as overstocking or slower inventory turnover rates. Higher DOH values can tie up capital in excess inventory and may indicate inefficiencies in production, distribution, or sales processes.

It is important for Zebra Technologies Corporation to closely monitor its inventory levels and assess the reasons behind the fluctuations in DOH. By optimizing inventory management practices, the company can improve working capital efficiency, reduce carrying costs, and enhance overall operational performance.