Zebra Technologies Corporation (ZBRA)

Return on equity (ROE)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands 528,000 296,000 463,000 837,000 504,000
Total stockholders’ equity US$ in thousands 3,586,000 3,036,000 2,733,000 2,984,000 2,144,000
ROE 14.72% 9.75% 16.94% 28.05% 23.51%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $528,000K ÷ $3,586,000K
= 14.72%

The return on equity (ROE) for Zebra Technologies Corporation has been fluctuating over the past five years.

- On December 31, 2020, the company's ROE stood at 23.51%, indicating that for every dollar of shareholders' equity, Zebra generated a profit of 23.51 cents. This suggests effective utilization of shareholder funds to generate earnings.

- The ROE increased to 28.05% by December 31, 2021, showing an improvement in profitability and efficiency in using equity to generate income. This could indicate effective management decision-making or operational enhancements.

- However, the ROE dipped to 16.94% by December 31, 2022, reflecting a decrease in profitability relative to the previous year. This could be a result of various factors such as increased expenses, lower revenue, or changes in the capital structure.

- The trend continued with a further decline in ROE to 9.75% by December 31, 2023, indicating a significant drop in the profitability and efficiency of equity utilization. This decline may raise concerns among investors and stakeholders.

- There was a slight recovery in ROE to 14.72% by December 31, 2024, but it remained below the levels seen in the earlier years. This could suggest efforts to improve profitability, but the company may still need to focus on enhancing operational performance and managing costs effectively.

Overall, the fluctuating trend in ROE for Zebra Technologies Corporation highlights the importance of closely monitoring and evaluating the company's financial performance and efficiency in generating returns for its shareholders.