Zebra Technologies Corporation (ZBRA)

Solvency ratios

	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
Debt-to-assets ratio	0.26	0.27	0.25	0.28	0.29	0.27	0.25	0.24	0.27	0.27	0.15	0.15	0.16	0.17	0.18	0.16	0.21	0.21	0.26	0.23
Debt-to-capital ratio	0.37	0.38	0.36	0.40	0.41	0.41	0.39	0.40	0.43	0.45	0.24	0.24	0.25	0.27	0.28	0.29	0.36	0.35	0.40	0.37
Debt-to-equity ratio	0.58	0.61	0.57	0.67	0.70	0.68	0.65	0.66	0.76	0.80	0.31	0.31	0.33	0.36	0.40	0.41	0.56	0.55	0.68	0.59
Financial leverage ratio	2.22	2.25	2.29	2.41	2.43	2.49	2.59	2.75	2.80	2.94	2.11	2.08	2.08	2.16	2.24	2.51	2.72	2.56	2.63	2.56

Zebra Technologies Corporation's solvency ratios provide insights into the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio:
The debt-to-assets ratio for Zebra Technologies Corporation has shown a downward trend over the years, signaling a decreasing reliance on debt to finance its assets. This ratio hovered around 0.2 to 0.3 range for most periods, indicating that around 15% to 30% of the company's assets were funded by debt, with a spike observed in June 2020 and June 2022 at 0.26 and 0.27, respectively. The decrease in this ratio over time suggests improved financial stability.

2. Debt-to-capital ratio:
Similarly, the debt-to-capital ratio exhibited a declining pattern, indicating a reduction in the proportion of debt in the company's capital structure. The ratio fluctuated between 0.2 and 0.4, with a notable increase in June 2022 and September 2022 at 0.45 and 0.43, respectively. This ratio highlights the portion of the company's capital that is financed by debt, with the company maintaining a healthy balance between debt and equity financing.

3. Debt-to-equity ratio:
The debt-to-equity ratio portrays a similar decreasing trend over the periods, indicating a lower reliance on debt in relation to equity for financing. The ratio ranged between 0.3 and 0.8, with spikes in June 2022 and September 2022 at 0.80 and 0.76, respectively. Despite these spikes, the general downward trend signifies an improvement in the company's financial leverage and lower financial risk.

4. Financial leverage ratio:
The financial leverage ratio, which represents the company's total debt relative to its equity, also displayed a decreasing trend. This ratio fluctuated between 2.0 and 3.0, with the highest values seen in June 2022 and September 2022 at 2.94 and 2.80, respectively. The decreasing trend indicates a reduction in financial risk and a stronger equity position to support the company's operations.

Overall, the solvency ratios of Zebra Technologies Corporation suggest a prudent approach towards managing its long-term financial obligations, with a decreasing reliance on debt financing and improved financial stability over the analyzed periods.

Coverage ratios

	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
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

The interest coverage ratio of Zebra Technologies Corporation has shown fluctuations over the period under consideration.

From December 31, 2019, to September 30, 2021, the interest coverage ratio steadily increased from 7.78 to 47.00, indicating a strong ability to meet interest obligations with its earnings. This steep increase suggests improved profitability and earnings stability during this period.

However, there was a notable decline in the interest coverage ratio from September 30, 2021, to December 31, 2022, where it dropped to 6.70. This decrease may indicate potential challenges in generating sufficient earnings to cover interest expenses effectively.

Subsequently, from March 31, 2023, to December 31, 2024, the interest coverage ratio continued to fluctuate within a lower range, with a slight uptick towards the end of the period. This trend suggests ongoing variability in the company's ability to comfortably meet its interest payment obligations.

Overall, while the interest coverage ratio of Zebra Technologies Corporation has shown both strengths and weaknesses over the analyzed period, it is crucial for stakeholders to closely monitor this ratio to assess the company's financial stability and ability to service its debt effectively.