Zebra Technologies Corporation (ZBRA)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 481,000 | 667,000 | 881,000 | 542,000 | 529,000 | 492,000 | 527,000 | 919,000 | 979,000 | 987,000 | 900,000 | 772,000 | 651,000 | 608,000 | 643,000 | 684,000 | 692,000 | 742,000 | 701,000 | 642,000 |
| Long-term debt | US$ in thousands | 2,047,000 | 2,121,000 | 2,042,000 | 1,880,000 | 1,809,000 | 2,017,000 | 2,017,000 | 913,000 | 922,000 | 940,000 | 944,000 | 956,000 | 881,000 | 1,086,000 | 986,000 | 1,167,000 | 1,080,000 | 1,314,000 | 1,561,000 | 1,605,000 |
| Total stockholders’ equity | US$ in thousands | 3,036,000 | 3,013,000 | 2,992,000 | 2,891,000 | 2,733,000 | 2,657,000 | 2,513,000 | 2,906,000 | 2,984,000 | 2,816,000 | 2,589,000 | 2,411,000 | 2,144,000 | 1,931,000 | 1,803,000 | 1,727,000 | 1,839,000 | 1,694,000 | 1,559,000 | 1,467,000 |
| Return on total capital | 9.46% | 12.99% | 17.50% | 11.36% | 11.65% | 10.53% | 11.63% | 24.06% | 25.06% | 26.28% | 25.47% | 22.93% | 21.52% | 20.15% | 23.05% | 23.64% | 23.71% | 24.67% | 22.47% | 20.90% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $481,000K ÷ ($2,047,000K + $3,036,000K)
= 9.46%
Based on the provided data, Zebra Technologies Corp.'s return on total capital has exhibited some fluctuations over the past eight quarters. The return on total capital was highest in Q1 2022 at 23.84% and has since shown a decreasing trend, reaching a low of 11.13% in Q4 2023.
The company's return on total capital has generally been above 10% throughout the period, indicating a relatively efficient use of both equity and debt to generate profits. However, the decreasing trend in the most recent quarters may raise some concerns about the company's ability to maintain or improve its profitability levels in the future.
Further analysis would be required to understand the factors driving the fluctuations in return on total capital and to assess the company's overall financial performance and efficiency in capital allocation.
Peer comparison
Dec 31, 2023