Zebra Technologies Corporation (ZBRA)

The solvency ratios of Zebra Technologies Corp., as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, demonstrate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.

The debt-to-assets ratio has been relatively stable over the past five years, ranging between 0.16 and 0.30. This indicates that Zebra Technologies Corp. has maintained a moderate level of debt in relation to its total assets, with 30% of assets being funded by debt as of December 31, 2023.

Similarly, the debt-to-capital ratio has also shown consistency, varying between 0.25 and 0.43. This ratio reflects the proportion of the company's capital that is financed through debt, with the latest value of 0.42 indicating that 42% of the company's capital structure is comprised of debt as of the end of 2023.

The debt-to-equity ratio has fluctuated over the years, ranging from 0.33 to 0.74. As of December 31, 2023, the ratio stands at 0.73, implying that for every dollar of equity, Zebra Technologies Corp. has $0.73 in debt. This suggests that the company relies moderately on debt financing to support its operations.

Lastly, the financial leverage ratio, which measures the proportion of the company's assets that are financed by debt, has also shown variability but has generally been within a narrow range. The ratio was 2.41 as of December 31, 2023, indicating that Zebra Technologies Corp. has $2.41 in assets for every dollar of equity, illustrating the company's leverage position in utilizing debt to finance its operations.

Overall, the solvency ratios of Zebra Technologies Corp. suggest that the company has maintained a prudent level of debt relative to its assets, capital, and equity over the years, demonstrating a reasonable ability to manage its financial obligations and leverage effectively.

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Coverage ratios

The interest coverage ratio provides insight into Zebra Technologies Corp.'s ability to meet its interest obligations through its operating income.

Looking at the data provided:
- In 2023, the interest coverage ratio was 4.40 times, indicating that the company's operating income was sufficient to cover its interest expenses 4.40 times over.
- The ratio for 2022 is missing, but it improved significantly in 2021 to 202.20 times, showing a substantial increase in the company's ability to cover interest costs.
- In 2020, the interest coverage ratio was 9.01 times, indicating a solid ability to cover interest expenses.
- Similarly, in 2019, the interest coverage ratio was 8.13 times, reflecting a healthy coverage of interest payments.

The fluctuation in the interest coverage ratio over the years may indicate changes in the company's profitability and its ability to generate sufficient operating income to meet interest expenses. The significant increase in 2021 suggests a notable improvement in Zebra Technologies Corp.'s financial flexibility. Further analysis of the company's financial performance and interest obligations is recommended to better understand the factors driving these changes in the interest coverage ratio.