Zebra Technologies Corporation (ZBRA)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 742,000 | 481,000 | 529,000 | 973,000 | 636,000 |
| Interest expense | US$ in thousands | 98,000 | 133,000 | 23,000 | 5,000 | 76,000 |
| Interest coverage | 7.57 | 3.62 | 23.00 | 194.60 | 8.37 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $742,000K ÷ $98,000K
= 7.57
Based on the provided data, Zebra Technologies Corporation's interest coverage ratio has shown significant fluctuations over the years.
In December 31, 2020, the interest coverage ratio stood at 8.37, indicating that the company generated sufficient earnings to cover its interest expense 8.37 times.
By December 31, 2021, the interest coverage ratio surged to 194.60, reflecting a substantial improvement in the company's ability to meet its interest obligations through its operating earnings.
In December 31, 2022, the interest coverage ratio decreased to 23.00, but still remained at a healthy level, signifying that the company's operating income was 23 times higher than its interest expense.
However, in December 31, 2023, the interest coverage ratio dropped to 3.62, indicating a decline in the company's ability to cover its interest payments from its operating profits.
By December 31, 2024, the interest coverage ratio improved slightly to 7.57, yet it remained below the levels seen in the previous years.
Overall, while Zebra Technologies Corporation has experienced fluctuations in its interest coverage ratio, it is essential for investors and stakeholders to monitor this metric closely to assess the company's financial health and its ability to meet its debt obligations.
Peer comparison
Dec 31, 2024