Zebra Technologies Corporation (ZBRA)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash 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
Receivables US$ in thousands 712,000 584,000 794,000 760,000 524,000
Total current liabilities US$ in thousands 1,704,000 1,598,000 2,332,000 1,800,000 1,851,000
Quick ratio 1.01 0.52 0.43 0.66 0.42

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($901,000K + $110,000K + $712,000K) ÷ $1,704,000K
= 1.01

The quick ratio of Zebra Technologies Corporation has shown some variability over the years. In December 2020, the quick ratio was relatively low at 0.42, indicating that the company had a limited ability to cover its short-term liabilities with its most liquid assets.

However, there was a notable improvement in the quick ratio by the end of 2021, standing at 0.66. This suggests that Zebra Technologies had a better liquidity position in that year, with a slightly improved ability to meet its short-term obligations using its liquid assets.

The quick ratio slightly dropped to 0.43 by the end of 2022, which may indicate a slight decrease in liquidity compared to the previous year. Nevertheless, the ratio improved to 0.52 by the end of 2023, signifying a more favorable liquidity position.

By the end of 2024, Zebra Technologies Corporation's quick ratio significantly increased to 1.01, which indicates a substantial improvement in its ability to cover short-term liabilities with liquid assets. This suggests that the company had a strong liquidity position at the end of 2024, which could potentially enhance its financial stability and ability to meet its short-term obligations promptly.