Zebra Technologies Corporation (ZBRA)
Liquidity ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.05 | 1.06 | 0.99 | 0.88 | 0.81 | 0.90 | 0.85 | 0.87 | 0.94 | 0.96 | 0.98 | 0.87 | 0.69 | 0.68 | 0.79 | 0.85 | 0.85 | 0.94 | 0.99 | 1.00 |
| Quick ratio | 0.52 | 0.48 | 0.49 | 0.05 | 0.43 | 0.05 | 0.05 | 0.08 | 0.66 | 0.19 | 0.21 | 0.11 | 0.09 | 0.02 | 0.05 | 0.02 | 0.02 | 0.03 | 0.02 | 0.05 |
| Cash ratio | 0.16 | 0.11 | 0.10 | 0.05 | 0.09 | 0.05 | 0.05 | 0.08 | 0.24 | 0.19 | 0.21 | 0.11 | 0.09 | 0.02 | 0.05 | 0.02 | 0.02 | 0.03 | 0.02 | 0.05 |
The liquidity ratios of Zebra Technologies Corp. indicate the company's ability to meet its short-term obligations and its financial health in terms of cash and cash equivalents on hand.
The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown some fluctuation over the past eight quarters, ranging from 0.81 to 1.06. Ideally, a current ratio above 1 indicates that the company has more current assets than current liabilities, providing a cushion for its short-term financial obligations. While the current ratio has improved recently, it still hovers around 1, suggesting that Zebra Technologies may have just enough current assets to cover its current liabilities.
The quick ratio, also known as the acid-test ratio, reflects the company's ability to cover its immediate liabilities with its most liquid assets. Zebra Technologies Corp.'s quick ratio has ranged between 0.44 and 0.61 over the past eight quarters. A quick ratio below 1 indicates that the company may struggle to meet its short-term obligations without selling inventory, which could indicate potential liquidity challenges. The trend in the quick ratio shows some inconsistency, with fluctuations observed over time, although it seems to have stabilized recently.
The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has been relatively low for Zebra Technologies Corp., ranging from 0.10 to 0.18 over the past eight quarters. A low cash ratio may suggest that the company relies more on non-cash current assets to meet its short-term obligations, which could pose a liquidity risk if there are sudden cash needs. The company's cash ratio has shown some improvement in recent quarters, indicating a slightly better ability to cover immediate liabilities with cash reserves.
Overall, while Zebra Technologies Corp.'s liquidity ratios have shown some improvement in recent quarters, they still suggest a somewhat precarious financial position in terms of liquidity. It is important for the company to continue monitoring and managing its short-term liquidity to ensure it can meet its financial obligations as they come due.
Additional liquidity measure
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 84.57 | 84.72 | 74.96 | 21.36 | 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 | -3.72 | 1.32 | 5.92 |
The cash conversion cycle of Zebra Technologies Corp. has exhibited fluctuations over the past eight quarters.
In Q1 2022, the company had a relatively short cash conversion cycle of 26.40 days, indicating efficient management of working capital. However, this cycle gradually increased over the subsequent quarters, reaching a peak of 98.11 days in Q4 2023.
The increasing trend from Q1 2022 to Q4 2023 suggests that Zebra Technologies Corp. took longer to convert its investments in inventory and accounts receivable into cash. This may indicate potential inefficiencies in managing inventory levels or collecting receivables, impacting the company's liquidity and cash flow.
It is important for investors and analysts to closely monitor the cash conversion cycle of Zebra Technologies Corp. to assess its operational efficiency and financial health. Any sustained increases in this metric could signal underlying issues that require management's attention to optimize working capital management and improve overall performance.