Zebra Technologies Corporation (ZBRA)
Activity ratios
Short-term
Turnover ratios
| 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 |
| Receivables turnover | 6.78 | 6.25 | 6.89 | 7.85 | 8.53 | 7.92 | — | 7.28 | — | — | — | 7.39 | — | — | — | — | — | — | — | — |
| Payables turnover | 5.76 | 6.56 | 7.42 | 7.94 | 9.01 | 7.28 | 7.14 | 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 |
| Working capital turnover | 6.56 | 7.75 | — | 61.93 | 55.06 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The activity ratios of Zebra Technologies Corporation provide insights into its operational efficiency over time.
1. Inventory Turnover: Zebra's inventory turnover has shown fluctuations but generally indicates that the company is efficiently managing its inventory. The ratio has gradually decreased from a high of 9.09 in March 2022 to 5.26 in December 2024, which could imply either changes in sales volumes or inventory management practices.
2. Receivables Turnover: The data shows that Zebra Technologies Corporation started reporting receivables turnovers in December 2021. The turnover has ranged between 6.25 and 8.53, indicating that the company collects its receivables efficiently. However, the exact trend over time cannot be determined due to missing data for some periods.
3. Payables Turnover: Zebra's payables turnover ratio has also fluctuated over time, reflecting changes in the company's payment practices and relationships with suppliers. The ratio has varied from a low of 5.28 in June 2022 to a high of 9.01 in September 2023, suggesting potential changes in the company's payment terms or supplier negotiations.
4. Working Capital Turnover: The working capital turnover ratio for Zebra Technologies Corporation suggests that the company has been utilizing its working capital efficiently over time, particularly with a significant increase from 55.06 in September 2023 to 61.93 in December 2023. However, the ratio has not been consistently reported for all periods, making it difficult to evaluate trends accurately.
In conclusion, the activity ratios of Zebra Technologies Corporation reflect its ability to manage its resources effectively, such as inventory, receivables, payables, and working capital, to support its operational activities and financial performance. Monitoring these ratios can help stakeholders assess the company's efficiency and effectiveness in managing its assets and liabilities.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (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 |
| Days of sales outstanding (DSO) | days | 53.84 | 58.44 | 52.98 | 46.51 | 42.80 | 46.10 | — | 50.16 | — | — | — | 49.39 | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 63.40 | 55.65 | 49.22 | 45.98 | 40.51 | 50.12 | 51.15 | 68.11 | 70.16 | 69.09 | 59.14 | 62.07 | 56.18 | 57.83 | 59.45 | 64.92 | 59.94 | 55.79 | 48.26 | 59.57 |
Zebra Technologies Corporation's Days of Inventory on Hand (DOH) ratio has fluctuated over the years, indicating changes in the company's inventory management efficiency. The DOH decreased from 51.16 days on December 31, 2019, to a low of 40.14 days on March 31, 2022, before increasing to 69.41 days on December 31, 2024. This suggests that the company may have faced challenges in managing its inventory levels effectively during certain periods.
In contrast, the Days of Sales Outstanding (DSO) ratio, which measures how quickly the company collects its accounts receivable, was not provided for the initial years but ranged from 42.80 days on September 30, 2023, to 58.44 days on September 30, 2024. A lower DSO is generally preferable as it indicates faster cash collection from customers.
The Number of Days of Payables ratio, reflecting how long it takes for the company to pay its suppliers, showed variations as well. It ranged from 40.51 days on September 30, 2023, to 70.16 days on September 30, 2022, before decreasing to 63.40 days on December 31, 2024. A higher number of days of payables may suggest that the company is taking longer to settle its payables and may have cash flow concerns.
Overall, analyzing these activity ratios can provide insights into Zebra Technologies Corporation's operational efficiency and effectiveness in managing its inventory, receivables, and payables over the specified periods.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 15.83 | 14.66 | 14.39 | 14.83 | 16.41 | 17.97 | 20.28 | 20.78 | 21.33 | 22.00 | 21.17 | 20.65 | 19.90 | 19.09 | 17.59 | 16.18 | 16.29 | 17.14 | 17.39 | 17.31 |
| Total asset turnover | 0.61 | 0.58 | 0.60 | 0.63 | 0.68 | 0.73 | 0.76 | 0.77 | 0.78 | 0.79 | 0.94 | 0.90 | 0.93 | 0.92 | 0.87 | 0.82 | 0.82 | 0.94 | 0.98 | 0.95 |
Zebra Technologies Corporation's long-term activity ratios provide insights into how efficiently the company utilizes its fixed assets and total assets to generate sales revenue.
1. Fixed Asset Turnover: This ratio measures how effectively the company is utilizing its fixed assets to generate sales. Zebra Technologies Corporation's fixed asset turnover ratio has been consistently increasing from 2019 to 2022, peaking at 22.00 in June 30, 2022. However, it decreased slightly to 20.78 by December 31, 2022. There was a further drop in the ratio to 14.83 by December 31, 2023, signifying a decrease in the efficiency of converting fixed assets into sales. The ratio improved slightly to 15.83 by December 31, 2024, indicating some recovery.
2. Total Asset Turnover: This ratio assesses the efficiency of the company in generating sales revenue from its total assets. Zebra Technologies Corporation's total asset turnover ratio fluctuated over the years, with a general downward trend. The ratio decreased from 0.95 in December 31, 2019, to 0.61 by December 31, 2024. This decline suggests that the company is becoming less efficient in using its total assets to generate sales revenue.
In summary, the fixed asset turnover ratio showed some volatility but maintained an overall increasing trend until 2022, while the total asset turnover ratio experienced a continuous decline. These ratios indicate that Zebra Technologies Corporation may need to improve its asset utilization efficiency, especially in leveraging its total assets to generate sales.