Zebra Technologies Corporation (ZBRA)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 67.56 | 80.27 | 71.70 | 43.15 | 54.66 |
| Days of sales outstanding (DSO) | days | 52.12 | 46.52 | 50.16 | 49.37 | 43.88 |
| Number of days of payables | days | 61.71 | 45.53 | 67.61 | 61.52 | 64.29 |
| Cash conversion cycle | days | 57.97 | 81.26 | 54.24 | 31.00 | 34.25 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 67.56 + 52.12 – 61.71
= 57.97
The cash conversion cycle of Zebra Technologies Corporation has displayed fluctuations over the years. From December 31, 2020, to December 31, 2021, the cycle decreased from 34.25 days to 31.00 days, indicating an improvement in the company's efficiency in converting its investments into cash. However, there was a significant increase in the cycle from December 31, 2021, to December 31, 2022, where it rose to 54.24 days. This increase suggests a longer time taken to convert investments into cash, which may have been influenced by changes in the company's operations or market conditions.
Subsequently, the cash conversion cycle continued to rise from December 31, 2022, to December 31, 2023, reaching 81.26 days. This extended cycle duration may indicate challenges in managing working capital efficiently, potentially affecting the company's liquidity and operational performance. However, there was a slight improvement in the cycle by December 31, 2024, where it decreased to 57.97 days, albeit still higher than the levels seen in the previous years.
Overall, the fluctuating trend in Zebra Technologies Corporation's cash conversion cycle points to changing dynamics in its cash management and working capital practices. It is essential for the company to closely monitor and address the factors influencing these fluctuations to optimize its cash flow efficiency and overall financial health.
Peer comparison
Dec 31, 2024