Zebra Technologies Corporation (ZBRA)

Liquidity ratios

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
Current ratio 1.43 1.37 0.99 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
Quick ratio 1.01 0.89 0.49 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
Cash ratio 0.59 0.43 0.10 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

Zebra Technologies Corporation's liquidity ratios have shown variations over the analyzed period. The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has generally improved from 0.85 as of December 31, 2019, to 1.43 as of December 31, 2024. This indicates a positive trend in the company's ability to meet its short-term obligations.

In terms of the quick ratio, which provides a more stringent measure of liquidity by excluding inventories from current assets, Zebra Technologies Corporation experienced fluctuations but overall demonstrated an increase from 0.02 as of December 31, 2019, to 1.01 as of December 31, 2024. This suggests a strengthening ability to meet short-term obligations without relying on selling inventory.

Additionally, the cash ratio, which assesses the company's ability to cover current liabilities with only cash and cash equivalents, also improved over time for Zebra Technologies Corporation. It increased from 0.02 as of December 31, 2019, to 0.59 as of December 31, 2024, indicating a positive trend in the company's cash position and ability to cover immediate obligations with cash on hand.

Overall, the improvement in these liquidity ratios reflects positively on Zebra Technologies Corporation's ability to manage its short-term financial obligations and suggests a healthier liquidity position over the analyzed period.

Additional liquidity measure

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
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

The cash conversion cycle of Zebra Technologies Corporation has shown considerable fluctuations over the periods under review. The cycle, which represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales, has ranged from negative to positive days.

During the initial periods up to September 2021, Zebra Technologies Corporation maintained a negative cash conversion cycle, indicating efficient management of working capital. However, starting from December 2021, the cycle turned positive, reaching as high as 81.63 days by September 30, 2023. This change suggests potential issues with inventory management and collection of receivables during this period.

Subsequently, the cash conversion cycle improved, decreasing to around 59.85 days by December 31, 2024. This improvement indicates potentially more effective management of working capital and enhanced operational efficiency during the latter periods examined.

Overall, it is crucial for Zebra Technologies Corporation to closely monitor its cash conversion cycle and ensure efficient management of working capital to support its operational activities and maintain healthy cash flows.