Zebra Technologies Corporation (ZBRA)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 3,744,000 | 3,656,000 | 4,378,000 | 4,153,000 | 3,412,000 |
| Payables | US$ in thousands | 633,000 | 456,000 | 811,000 | 700,000 | 601,000 |
| Payables turnover | 5.91 | 8.02 | 5.40 | 5.93 | 5.68 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $3,744,000K ÷ $633,000K
= 5.91
The payables turnover ratio measures how efficiently Zebra Technologies Corporation is managing its accounts payable. The trend in the payables turnover ratio from 2020 to 2024 shows some fluctuations.
From December 31, 2020, to December 31, 2021, there was a slight increase in the payables turnover ratio from 5.68 to 5.93, indicating that the company was able to pay off its suppliers slightly faster in 2021. This could suggest improved liquidity or better negotiation with suppliers.
However, from December 31, 2021, to December 31, 2022, there was a decrease in the payables turnover ratio to 5.40, which might imply that Zebra Technologies Corporation took longer to pay its suppliers in 2022. This could be a sign of strained liquidity or a change in payment terms with vendors.
The ratio then significantly increased to 8.02 by December 31, 2023, reflecting a notable improvement in managing accounts payable. A higher payables turnover ratio may indicate that the company is efficiently settling its payables, possibly taking advantage of discounts or managing its working capital effectively.
By December 31, 2024, the payables turnover ratio dropped slightly to 5.91, showing a mild decrease in the speed of paying suppliers compared to the previous year. Overall, while there have been fluctuations, the company has generally maintained a reasonable level of efficiency in managing its accounts payable over the analyzed period.
Peer comparison
Dec 31, 2024