Zebra Technologies Corporation (ZBRA)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.40% | 46.33% | 45.41% | 46.77% | 45.95% |
| Operating profit margin | 14.88% | 10.50% | 9.16% | 17.42% | 14.93% |
| Pretax margin | 12.74% | 7.29% | 9.42% | 17.23% | 12.85% |
| Net profit margin | 10.59% | 6.46% | 8.01% | 14.90% | 11.56% |
Based on the provided data, we can analyze the profitability ratios of Zebra Technologies Corporation over the years from 2020 to 2024.
1. Gross Profit Margin:
- Zebra's gross profit margin has shown a fluctuating trend, increasing from 45.95% in 2020 to 48.40% in 2024, with a dip in 2022 at 45.41%.
- The company's ability to control the cost of goods sold and generate profits from its core operations improved over the years.
2. Operating Profit Margin:
- Zebra's operating profit margin has displayed variability, reaching its peak at 17.42% in 2021 before dropping to 9.16% in 2022 and rising again to 14.88% in 2024.
- This ratio indicates the efficiency of the company in managing its operating expenses and reflects improvements in operating efficiency.
3. Pretax Margin:
- The pretax margin of Zebra Technologies Corporation has also fluctuated, with a significant increase from 12.85% in 2020 to 17.23% in 2021, followed by a decline in the subsequent years.
- The company's ability to generate profits before taxes relative to its total revenue has shown some volatility throughout the period.
4. Net Profit Margin:
- Zebra's net profit margin, representing the percentage of revenue that translates into actual profits after all expenses, exhibited a similar pattern of fluctuation.
- It increased from 11.56% in 2020 to 14.90% in 2021, followed by declines to 6.46% in 2023 and then a recovery to 10.59% in 2024.
- This ratio reflects the company's overall profitability and efficiency in managing its cost structure and operational performance.
In conclusion, Zebra Technologies Corporation's profitability ratios demonstrate a mixed performance over the years, with fluctuations in margins indicating varying levels of operational efficiency, cost management, and profitability. It would be important for stakeholders to further investigate the factors impacting these ratios to assess the company's financial health and performance accurately.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.31% | 6.58% | 7.03% | 15.75% | 12.11% |
| Return on assets (ROA) | 6.63% | 4.05% | 6.15% | 13.47% | 9.38% |
| Return on total capital | 13.07% | 9.46% | 11.65% | 24.91% | 21.02% |
| Return on equity (ROE) | 14.72% | 9.75% | 16.94% | 28.05% | 23.51% |
Zebra Technologies Corporation has shown varying levels of profitability over the past five years based on the provided financial ratios.
1. Operating Return on Assets (Operating ROA):
- The operating return on assets has fluctuated over the years, ranging from 12.11% in 2020 to 15.75% in 2021, indicating efficient utilization of assets to generate operating profits. However, this ratio decreased to 6.58% in 2023 and then slightly increased to 9.31% in 2024, suggesting some challenges in maintaining profitability from operations.
2. Return on Assets (ROA):
- The return on assets also shows a similar trend, with the highest ratio of 13.47% in 2021 and the lowest of 4.05% in 2023. This indicates the overall effectiveness of the company in generating profits from its total assets. The increase in 2021 followed by a decrease in subsequent years may suggest the need for better asset management strategies.
3. Return on Total Capital:
- The return on total capital measures the efficiency of the company in generating returns for both equity and debt holders. The ratios range from 21.02% in 2020 to 13.07% in 2024, showing a declining trend. This could signify a decrease in the overall returns generated by the company on its invested capital.
4. Return on Equity (ROE):
- The return on equity reflects the profitability specifically for the company's shareholders. Zebra Technologies Corporation achieved the highest ROE of 28.05% in 2021, indicating a strong return on equity investments. However, this ratio declined in the following years, with the lowest ROE of 9.75% in 2023.
Overall, the profitability ratios of Zebra Technologies Corporation illustrate a mixed performance in terms of asset utilization, capital efficiency, and returns to shareholders. The company should focus on improving its operational efficiency and capital management strategies to sustain and enhance profitability in the future.