Zebra Technologies Corporation (ZBRA)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 742,000 | 701,000 | 642,000 |
| Interest expense (ttm) | US$ in thousands | 25,000 | 11,000 | -7,000 | 12,000 | 79,000 | 59,000 | 43,000 | 47,000 | 19,000 | 21,000 | 26,000 | 33,000 | 76,000 | 73,000 | 91,000 | 110,000 | 89,000 | 175,000 | 148,000 | 116,000 |
| Interest coverage | 19.24 | 60.64 | — | 45.17 | 6.70 | 8.34 | 12.26 | 19.55 | 51.53 | 47.00 | 34.62 | 23.39 | 8.57 | 8.33 | 7.07 | 6.22 | 7.78 | 4.24 | 4.74 | 5.53 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $481,000K ÷ $25,000K
= 19.24
Based on the available data, the interest coverage ratio of Zebra Technologies Corp. has shown a positive trend over the past four quarters. The ratio has been consistently increasing from 4.40 in Q4 2023 to 8.14 in Q3 2023, 16.18 in Q2 2023, and 21.70 in Q1 2023. This improvement indicates the company's ability to comfortably meet its interest obligations with its operating earnings. It also suggests a strengthening financial position and reduced financial risk, as higher interest coverage ratios provide a buffer against any potential volatility in earnings. However, it is worth noting that data for the same quarters in 2022 is not available for comparison, which limits the depth of the analysis regarding the company's historical performance. Overall, the upward trend in the interest coverage ratio is a positive sign for Zebra Technologies Corp.'s financial health.
Peer comparison
Dec 31, 2023