Zebra Technologies Corporation (ZBRA)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 2,440,000 1,672,000 1,883,000 1,689,000 1,273,000
Total current liabilities US$ in thousands 1,704,000 1,598,000 2,332,000 1,800,000 1,851,000
Current ratio 1.43 1.05 0.81 0.94 0.69

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $2,440,000K ÷ $1,704,000K
= 1.43

The current ratio of Zebra Technologies Corporation has shown an upward trend over the past five years, indicating an improvement in the company's short-term liquidity position. As of December 31, 2020, the current ratio was 0.69, which was below 1, suggesting that the company may have had difficulty meeting its short-term obligations. However, by December 31, 2024, the current ratio had increased to 1.43, signaling that the company's current assets have become more sufficient to cover its current liabilities.

Overall, the increasing current ratio reflects a healthier liquidity position for Zebra Technologies Corporation, as it shows a strengthening ability to meet its short-term financial obligations. This improvement may be attributed to factors such as better inventory management, efficient accounts receivable collection, or an increase in cash reserves, which have bolstered the company's ability to meet its current liabilities.