Zebra Technologies Corporation (ZBRA)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 649,000 | 412,000 | 415,000 | 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 |
| Long-term debt | US$ in thousands | 2,092,000 | 2,080,000 | 1,815,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 3,586,000 | 3,421,000 | 3,169,000 | 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 |
| Return on total capital | 11.43% | 7.49% | 8.33% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $649,000K ÷ ($2,092,000K + $3,586,000K)
= 11.43%
The return on total capital for Zebra Technologies Corporation has shown fluctuations over the reported periods, indicating variability in the company's ability to generate returns from its total invested capital.
The return on total capital stood at around 23% in the first quarter of 2020 before slightly declining in the subsequent quarters. The metric bounced back to 25.47% in the second quarter of 2021, showing improved efficiency in capital utilization. However, there was a gradual decline in the return on total capital from the fourth quarter of 2021 to the first quarter of 2024, dropping to as low as 8.33% in March 2024.
The sharp decrease in the return on total capital in the first quarter of 2024 could be a cause for concern, suggesting a potential decline in the company's profitability relative to its total capital base. Investors and stakeholders may need to closely monitor this trend to assess the underlying factors affecting the company's profitability and capital efficiency.
Peer comparison
Dec 31, 2024