Zebra Technologies Corporation (ZBRA)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 80.27 | 71.70 | 43.15 | 54.66 | 50.62 |
| Days of sales outstanding (DSO) | days | 46.52 | 50.16 | 49.37 | 43.88 | 53.60 |
| Number of days of payables | days | 45.53 | 67.61 | 61.52 | 64.29 | 58.95 |
| Cash conversion cycle | days | 81.26 | 54.24 | 31.00 | 34.25 | 45.27 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 80.27 + 46.52 – 45.53
= 81.26
The cash conversion cycle of Zebra Technologies Corp. has been fluctuating over the past five years. In 2023, the company's cash conversion cycle increased significantly to 98.11 days from 55.80 days in 2022. This indicates that the company took longer to convert its investments in inventory into cash during the most recent year.
Comparing back to 2021 and 2020, where the cash conversion cycle was 23.86 days and 29.56 days respectively, the company was more efficient in managing its working capital and converting its inventory into cash quicker. The improvement from 2020 to 2021 was especially notable, showing a more efficient utilization of resources.
However, in 2019, the cash conversion cycle was slightly higher at 40.55 days compared to the subsequent years, indicating that there was room for improvement even before the performance in 2020 and 2021.
Overall, the trend in the cash conversion cycle for Zebra Technologies Corp. shows some variability, with fluctuations indicating potential changes in the company's efficiency in managing its working capital over the years. Further analysis into the company's inventory management, accounts receivable collection, and accounts payable payment policies could provide insights into the reasons behind these fluctuations.
Peer comparison
Dec 31, 2023