Zebra Technologies Corporation (ZBRA)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 901,000 137,000 105,000 332,000 168,000
Short-term investments US$ in thousands 110,000 113,000 113,000 101,000 77,000
Total current liabilities US$ in thousands 1,704,000 1,598,000 2,332,000 1,800,000 1,851,000
Cash ratio 0.59 0.16 0.09 0.24 0.13

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($901,000K + $110,000K) ÷ $1,704,000K
= 0.59

The cash ratio of Zebra Technologies Corporation has shown fluctuations over the past five years. In December 31, 2020, the cash ratio was 0.13, indicating that the company had $0.13 in cash and cash equivalents for every $1 of current liabilities. The ratio increased to 0.24 by December 31, 2021, reflecting an improvement in the company's liquidity position.

However, there was a decline in the cash ratio to 0.09 by December 31, 2022, suggesting a decrease in the company's ability to cover its short-term obligations with its available cash resources. The ratio then rebounded to 0.16 by December 31, 2023, showing a partial recovery in liquidity.

Notably, by December 31, 2024, the cash ratio significantly improved to 0.59, indicating that Zebra Technologies Corporation had $0.59 in cash and cash equivalents for every $1 of current liabilities. This substantial increase reflects a strong cash position relative to its short-term obligations, demonstrating improved financial stability and liquidity management by the company.