Zebra Technologies Corporation (ZBRA)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 296,000 | 463,000 | 837,000 | 504,000 | 544,000 |
| Total stockholders’ equity | US$ in thousands | 3,036,000 | 2,733,000 | 2,984,000 | 2,144,000 | 1,839,000 |
| ROE | 9.75% | 16.94% | 28.05% | 23.51% | 29.58% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $296,000K ÷ $3,036,000K
= 9.75%
The return on equity (ROE) of Zebra Technologies Corp. has fluctuated over the past five years. In 2019, the ROE was at its highest point at 29.58%, indicating the company generated a significant return for shareholders relative to its equity. However, there was a decrease in ROE in the following years with values of 23.51% in 2020, 28.05% in 2021, 16.94% in 2022, and 9.75% in 2023.
The declining trend in ROE from 2019 to 2023 suggests that Zebra Technologies' efficiency in generating profits from shareholders' equity has decreased over time. This could be a cause for concern as a lower ROE may indicate less effective utilization of the company's resources to generate profits for shareholders.
It is essential for the company to assess the factors contributing to the decline in ROE and take appropriate measures to improve efficiency and profitability to ensure sustainable returns for its shareholders in the future.
Peer comparison
Dec 31, 2023