Zebra Technologies Corporation (ZBRA)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 481,000 | 529,000 | 979,000 | 651,000 | 692,000 |
| Total assets | US$ in thousands | 7,306,000 | 7,529,000 | 6,215,000 | 5,375,000 | 4,711,000 |
| Operating ROA | 6.58% | 7.03% | 15.75% | 12.11% | 14.69% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $481,000K ÷ $7,306,000K
= 6.58%
Zebra Technologies Corp.'s operating return on assets (operating ROA) has shown a declining trend over the past five years. The operating ROA decreased from 15.37% in 2019 to 8.01% in 2023. This may indicate potential inefficiencies in the company's operations, leading to lower profitability relative to its asset base. The drop in operating ROA could be attributed to various factors such as increased operating expenses, lower revenue generation, or inefficient asset utilization.
The fluctuation in operating ROA over the years suggests that Zebra Technologies Corp. may have experienced challenges in managing its assets effectively to generate operating income. Investors and stakeholders may need to further investigate the company's operational efficiency and asset management strategies to understand the reasons behind the declining trend in operating ROA. It is crucial for the company to address these issues to improve profitability and sustainable growth in the future.
Peer comparison
Dec 31, 2023