Zebra Technologies Corporation (ZBRA)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 742,000 | 481,000 | 529,000 | 973,000 | 636,000 |
| Long-term debt | US$ in thousands | 2,092,000 | 2,047,000 | 1,809,000 | 922,000 | 881,000 |
| Total stockholders’ equity | US$ in thousands | 3,586,000 | 3,036,000 | 2,733,000 | 2,984,000 | 2,144,000 |
| Return on total capital | 13.07% | 9.46% | 11.65% | 24.91% | 21.02% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $742,000K ÷ ($2,092,000K + $3,586,000K)
= 13.07%
Over the past five years, Zebra Technologies Corporation's return on total capital has exhibited fluctuations. The return on total capital increased from 21.02% as of December 31, 2020, to 24.91% as of December 31, 2021, indicating improved efficiency in generating profits relative to the capital invested. However, the return on total capital decreased significantly to 11.65% as of December 31, 2022, and further dropped to 9.46% as of December 31, 2023, suggesting a decline in the company's profitability relative to its total capital base.
The return on total capital recovered slightly to 13.07% as of December 31, 2024, but it still remains below the levels seen in the earlier years. This fluctuation in the return on total capital may indicate varying levels of operational efficiency and capital utilization by Zebra Technologies Corporation over the years. Further analysis of the company's financial performance and operational strategies may be required to understand the factors contributing to these fluctuations and to assess the sustainability and improvement potential of its return on total capital in the future.
Peer comparison
Dec 31, 2024