Zebra Technologies Corporation (ZBRA)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 742,000 481,000 529,000 979,000 651,000
Total assets US$ in thousands 7,968,000 7,306,000 7,529,000 6,215,000 5,375,000
Operating ROA 9.31% 6.58% 7.03% 15.75% 12.11%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $742,000K ÷ $7,968,000K
= 9.31%

Zebra Technologies Corporation's operating return on assets (operating ROA) has experienced fluctuations over the past five years. It stood at 12.11% on December 31, 2020, increased to 15.75% by December 31, 2021, but then declined to 7.03% by December 31, 2022. The trend continued with a further decrease to 6.58% by December 31, 2023, and then a subsequent increase to 9.31% as of December 31, 2024.

The variations in operating ROA suggest changes in the company's operational efficiency in generating profits from its assets. A higher operating ROA indicates that the company is effectively utilizing its assets to generate earnings, while a lower figure may signify inefficiencies in asset utilization or declining profitability relative to the asset base.

It is important for Zebra Technologies Corporation to analyze the factors contributing to the fluctuations in operating ROA and consider strategies to improve asset efficiency and profitability in the future. By closely monitoring and addressing the drivers behind these variations, the company can enhance its overall financial performance and create sustainable value for its stakeholders.