Zebra Technologies Corporation (ZBRA)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 481,000 | 529,000 | 973,000 | 636,000 | 687,000 |
| Long-term debt | US$ in thousands | 2,047,000 | 1,809,000 | 922,000 | 881,000 | 1,080,000 |
| Total stockholders’ equity | US$ in thousands | 3,036,000 | 2,733,000 | 2,984,000 | 2,144,000 | 1,839,000 |
| Return on total capital | 9.46% | 11.65% | 24.91% | 21.02% | 23.54% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $481,000K ÷ ($2,047,000K + $3,036,000K)
= 9.46%
Zebra Technologies Corp.'s return on total capital has exhibited a decreasing trend over the past five years. The company's return on total capital was 23.23% in 2019, showing a gradual decline to 20.21% in 2020, further reducing to 25.43% in 2021, and down to 19.68% in 2022. However, by the end of 2023, there was a slight improvement with a return on total capital of 11.13%.
This decline in return on total capital may indicate challenges in efficiently utilizing the company's total capital to generate profits. It is important for the company to assess and address the factors contributing to this trend to enhance its overall financial performance and sustainable growth in the future.
Peer comparison
Dec 31, 2023