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