Zebra Technologies Corporation (ZBRA)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 59.85 | 69.51 | 78.06 | 81.60 | 81.63 | 73.03 | 19.80 | 54.27 | -1.76 | -16.29 | -19.00 | 30.85 | -15.77 | -10.85 | -4.67 | -9.72 | -6.81 | 1.11 | -0.43 | -8.42 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 69.41 + 53.84 – 63.40
= 59.85
The cash conversion cycle of Zebra Technologies Corporation has displayed varying trends over the periods outlined. Initially, from December 2019 to June 2021, the company operated with negative cash conversion cycles, indicating efficient management of cash flows from operations, inventory, and receivables. This suggests that Zebra Technologies was able to collect cash from customers before paying its suppliers, leading to a negative cycle.
However, the cash conversion cycle turned positive in the latter half of 2021, reaching a peak of 81.63 days by September 2023. A positive cash conversion cycle signifies that the company was taking longer to convert its investments in raw materials and other resources into cash from sales. This increase could potentially be due to inventory build-up, longer collection periods from customers, or delays in supplier payments.
Subsequently, there was a slight decrease in the cash conversion cycle by December 2024, indicating some improvement in the company's cash flow management compared to the previous quarters. Overall, monitoring and managing the cash conversion cycle is crucial for Zebra Technologies to optimize its working capital and liquidity position efficiently.
Peer comparison
Dec 31, 2024