Zebra Technologies Corporation (ZBRA)

The solvency ratios of Zebra Technologies Corporation indicate its ability to meet its long-term financial obligations. The Debt-to-assets ratio decreased slightly from 0.16 in 2020 to 0.15 in 2021 before rising to 0.26 in 2024, suggesting that the company's level of debt relative to its assets has been relatively stable with a slight increase over the years.

The Debt-to-capital ratio also showed a similar pattern, decreasing from 0.29 in 2020 to 0.24 in 2021, before increasing to 0.37 in 2024. This ratio reflects the proportion of debt compared to the total capital structure, including both debt and equity.

The Debt-to-equity ratio decreased from 0.41 in 2020 to 0.31 in 2021 before rising to 0.58 in 2024. This ratio shows the extent to which the company is financed by debt versus equity, with higher values indicating higher financial risk.

Lastly, the Financial leverage ratio fluctuated over the period, ranging from 2.08 in 2021 to 2.75 in 2022, before reducing to 2.22 in 2024. This ratio measures the company's reliance on debt to finance its assets and operations, with lower values indicating lower financial risk.

Overall, while Zebra Technologies Corporation experienced fluctuations in its solvency ratios over the years, the analysis suggests that the company maintained a reasonable balance between debt and assets, capital, and equity, indicating a stable financial position.

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Coverage ratios

The interest coverage ratio for Zebra Technologies Corporation has fluctuated over the past five years.

On December 31, 2020, the interest coverage ratio was 8.37, indicating that the company's operating income was able to cover its interest expenses approximately 8 times over. This suggests a moderate ability to meet interest obligations.

By December 31, 2021, the interest coverage ratio significantly improved to 194.60, reflecting a substantial increase in the company's ability to cover its interest payments. This significant improvement indicates a strong financial position and a decreased risk of default on interest payments.

However, on December 31, 2022, the interest coverage ratio decreased to 23.00, though still at a healthy level, indicating that the company's operating income continued to comfortably cover its interest expenses.

As of December 31, 2023, the interest coverage ratio fell to 3.62, signaling a decline in the company's ability to cover its interest obligations. A lower ratio may indicate increased financial risk and potential challenges in meeting interest payments.

By December 31, 2024, the interest coverage ratio slightly improved to 7.57, showing a modest recovery from the previous year but still below the levels seen in 2021 and 2022.

Overall, Zebra Technologies Corporation has shown varying levels of interest coverage over the years, with periods of strong coverage and fluctuations. It is important for the company to maintain a healthy interest coverage ratio to ensure financial stability and meet its debt obligations effectively.