Zebra Technologies Corporation (ZBRA)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 649,000 | 412,000 | 415,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 114,000 | 126,000 | 111,000 | 131,000 | 117,000 | 99,000 | 86,000 | 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 |
| Interest coverage | 5.69 | 3.27 | 3.74 | 3.67 | 5.70 | 8.90 | 6.30 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $649,000K ÷ $114,000K
= 5.69
The interest coverage ratio of Zebra Technologies Corporation has shown fluctuations over the period from December 31, 2019, to December 31, 2024.
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates that the company is more capable of covering its interest expenses.
Zebra's interest coverage ratio started at 7.78 on December 31, 2019, showing that the company could cover its interest payments nearly 8 times with its operating income. The ratio then fluctuated over the subsequent quarters, indicating certain variability in the company's ability to cover its interest expenses with operating income.
The ratio peaked at 51.53 on December 31, 2021, indicating a significant improvement in Zebra's ability to cover its interest costs. However, over the following quarters, the ratio declined, reaching 3.67 on December 31, 2023.
The sharp decline in the interest coverage ratio in late 2023 may suggest potential concerns regarding Zebra's ability to service its debt obligations. However, it is important to perform a more comprehensive analysis of the company's financial position and future outlook to understand the reasons behind these fluctuations in the interest coverage ratio.
Peer comparison
Dec 31, 2024