Zebra Technologies Corporation (ZBRA)
Payables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,306,000 | 3,587,000 | 3,779,000 | 3,982,000 | 4,346,000 | 4,344,000 | 4,369,000 | 4,265,000 | 4,116,000 | 3,957,000 | 3,768,000 | 3,518,000 | 3,379,000 | 3,325,000 | 3,291,000 | 3,381,000 | 3,382,000 | 3,334,000 | 3,316,000 | 3,265,000 |
| Payables | US$ in thousands | 456,000 | 433,000 | 562,000 | 602,000 | 811,000 | 835,000 | 827,000 | 691,000 | 700,000 | 609,000 | 597,000 | 573,000 | 601,000 | 546,000 | 503,000 | 447,000 | 552,000 | 502,000 | 472,000 | 457,000 |
| Payables turnover | 7.25 | 8.28 | 6.72 | 6.61 | 5.36 | 5.20 | 5.28 | 6.17 | 5.88 | 6.50 | 6.31 | 6.14 | 5.62 | 6.09 | 6.54 | 7.56 | 6.13 | 6.64 | 7.03 | 7.14 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $3,306,000K ÷ $456,000K
= 7.25
The payables turnover ratio measures how efficiently Zebra Technologies Corp. is managing its accounts payable by evaluating how many times the company pays off its suppliers within a given period. A higher payables turnover ratio typically indicates that the company is efficiently managing its payables and paying off its suppliers in a timely manner.
From the provided data, we observe fluctuations in Zebra Technologies Corp.'s payables turnover ratio over the past eight quarters. The payables turnover ratio ranged from a low of 3.76 in Q3 2022 to a high of 6.28 in Q3 2023.
The average payables turnover ratio over the eight quarters was approximately 4.85. However, it is essential to consider trends over time rather than focusing on a single data point.
The general trend appears to show an improvement in the efficiency of managing accounts payables, as the ratio has generally been increasing over the past quarters. This improvement may indicate that Zebra Technologies Corp. is paying off its suppliers more quickly, potentially enhancing relationships and securing better terms in the future.
Further investigation into the reasons behind the fluctuations in the payables turnover ratio, such as changes in payment terms, business operations, or supplier relationships, could provide a more in-depth understanding of the company's financial management practices. Monitoring this ratio over time is crucial to assess the company's ability to efficiently manage its payables and maintain strong supplier relationships.
Peer comparison
Dec 31, 2023