Zebra Technologies Corporation (ZBRA)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,306,000 | 7,529,000 | 6,215,000 | 5,375,000 | 4,711,000 |
| Total stockholders’ equity | US$ in thousands | 3,036,000 | 2,733,000 | 2,984,000 | 2,144,000 | 1,839,000 |
| Financial leverage ratio | 2.41 | 2.75 | 2.08 | 2.51 | 2.56 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,306,000K ÷ $3,036,000K
= 2.41
The financial leverage ratio of Zebra Technologies Corp. has fluctuated over the past five years, indicating changes in the company's capital structure and debt levels. The ratio decreased from 2.56 in 2019 to 2.51 in 2020, then increased to 2.75 in 2022 before dropping to 2.41 in 2023.
A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity financing. Zebra's ratio has generally been above 2, indicating a significant reliance on debt to finance its operations and investments.
The decrease in the ratio from 2022 to 2023 may indicate that Zebra Technologies Corp. either reduced its debt levels or increased its equity base during that period. However, further analysis of the company's debt structure and capital management practices would be necessary to fully understand the implications of these changes in the financial leverage ratio.
Peer comparison
Dec 31, 2023