Stock Analysis on Net
Stock Analysis on Net

Motorola Solutions Inc. (NYSE:MSI)

This company has been moved to the archive! The financial data has not been updated since August 1, 2024.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Motorola Solutions Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
United States Federal 269 240 134 117 94
Other nations 125 159 98 98 93
States (U.S.) 70 83 36 31 27
Current income tax expense 464 482 268 246 214
United States Federal (30) (179) (2) (21) (61)
Other nations (9) (118) 22 8 (22)
States (U.S.) 7 (37) 14 (12) (1)
Deferred income tax expense (benefit) (32) (334) 34 (25) (84)
Income tax expense 432 148 302 221 130

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Current income tax expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Motorola Solutions Inc. current income tax expense increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred income tax expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Motorola Solutions Inc. deferred income tax expense (benefit) decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Motorola Solutions Inc. income tax expense decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Effective Income Tax Rate (EITR)

Motorola Solutions Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State income taxes, net of federal benefit 3.30% 5.00% 3.50% 3.30% 3.20%
Non-U.S. tax expense on non-U.S. earnings 0.70% 0.10% 0.50% 0.50% 0.40%
U.S. tax expense (benefit) on undistributed non-U.S. earnings -2.10% -2.80% 0.40% -0.20% 0.60%
Intra-group IP transfer 0.00% -5.10% 0.00% 0.00% 0.00%
Stock compensation -1.50% -4.50% -2.10% -4.10% -2.70%
Valuation allowances -0.60% -3.40% -2.20% 0.30% -7.90%
Research credits -0.90% -1.10% -1.30% -2.40% -1.00%
Reserve for uncertain tax positions -0.10% -0.40% -0.60% 0.00% -0.30%
Other tax expense (benefit) 0.30% 1.00% 0.30% 0.40% -0.30%
Effective tax rate 20.10% 9.80% 19.50% 18.80% 13.00%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Motorola Solutions Inc. effective tax rate decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Components of Deferred Tax Assets and Liabilities

Motorola Solutions Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Inventory 30 38 29 22 45
Accrued liabilities and allowances 77 67 86 67 65
Employee benefits 270 290 321 372 392
Capitalized items 146 95 (86) (61) (129)
Tax basis differences on investments 4 6 (1) (3) 2
Depreciation tax basis differences on fixed assets (2) 1 23 52 68
Undistributed non-U.S. earnings (28) (38) (36) (33) (27)
Tax attribute carryforwards 115 298 410 449 471
Business reorganization 9 7 8 16 10
Warranty and customer liabilities 22 22 27 24 33
Deferred revenue and costs 406 382 213 203 165
Valuation allowances (63) (221) (275) (341) (349)
Operating lease assets (120) (116) (95) (103) (125)
Operating lease liabilities 129 129 108 119 139
Other 10 4 1 3 (1)
Net deferred tax assets (liabilities) 1,005 964 733 786 759

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Motorola Solutions Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

Motorola Solutions Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 1,062 1,036 916 966 943
Deferred tax liabilities 55 73 183 180 184

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Motorola Solutions Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Motorola Solutions Inc. deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Deferred Taxes

Motorola Solutions Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 13,336 12,814 12,189 10,876 10,642
Less: Noncurrent deferred tax assets, net 1,062 1,036 916 966 943
Total assets (adjusted) 12,274 11,778 11,273 9,910 9,699
Adjustment to Total Liabilities
Total liabilities (as reported) 12,597 12,683 12,212 11,417 11,325
Less: Noncurrent deferred tax liabilities, net 55 73 183 180 184
Total liabilities (adjusted) 12,542 12,610 12,029 11,237 11,141
Adjustment to Total Motorola Solutions, Inc. Stockholders’ Equity (deficit)
Total Motorola Solutions, Inc. stockholders’ equity (deficit) (as reported) 724 116 (40) (558) (700)
Less: Net deferred tax assets (liabilities) 1,005 964 733 786 759
Total Motorola Solutions, Inc. stockholders’ equity (deficit) (adjusted) (281) (848) (773) (1,344) (1,459)
Adjustment to Net Earnings Attributable To Motorola Solutions, Inc.
Net earnings attributable to Motorola Solutions, Inc. (as reported) 1,709 1,363 1,245 949 868
Add: Deferred income tax expense (benefit) (32) (334) 34 (25) (84)
Net earnings attributable to Motorola Solutions, Inc. (adjusted) 1,677 1,029 1,279 924 784

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Motorola Solutions Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Motorola Solutions Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 17.13% 14.96% 15.24% 12.80% 11.01%
Adjusted net profit margin 16.81% 11.29% 15.65% 12.46% 9.94%
Total Asset Turnover
Reported total asset turnover 0.75 0.71 0.67 0.68 0.74
Adjusted total asset turnover 0.81 0.77 0.72 0.75 0.81
Financial Leverage
Reported financial leverage 18.42 110.47 — — —
Adjusted financial leverage — — — — —
Return on Equity (ROE)
Reported ROE 236.05% 1,175.00% — — —
Adjusted ROE — — — — —
Return on Assets (ROA)
Reported ROA 12.81% 10.64% 10.21% 8.73% 8.16%
Adjusted ROA 13.66% 8.74% 11.35% 9.32% 8.08%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Motorola Solutions Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Motorola Solutions Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Motorola Solutions Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Motorola Solutions Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Motorola Solutions, Inc. 1,709 1,363 1,245 949 868
Net sales 9,978 9,112 8,171 7,414 7,887
Profitability Ratio
Net profit margin1 17.13% 14.96% 15.24% 12.80% 11.01%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Motorola Solutions, Inc. 1,677 1,029 1,279 924 784
Net sales 9,978 9,112 8,171 7,414 7,887
Profitability Ratio
Adjusted net profit margin2 16.81% 11.29% 15.65% 12.46% 9.94%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net earnings attributable to Motorola Solutions, Inc. ÷ Net sales
= 100 × 1,709 ÷ 9,978 = 17.13%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to Motorola Solutions, Inc. ÷ Net sales
= 100 × 1,677 ÷ 9,978 = 16.81%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Motorola Solutions Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales 9,978 9,112 8,171 7,414 7,887
Total assets 13,336 12,814 12,189 10,876 10,642
Activity Ratio
Total asset turnover1 0.75 0.71 0.67 0.68 0.74
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales 9,978 9,112 8,171 7,414 7,887
Adjusted total assets 12,274 11,778 11,273 9,910 9,699
Activity Ratio
Adjusted total asset turnover2 0.81 0.77 0.72 0.75 0.81

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 9,978 ÷ 13,336 = 0.75

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 9,978 ÷ 12,274 = 0.81

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Motorola Solutions Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 13,336 12,814 12,189 10,876 10,642
Total Motorola Solutions, Inc. stockholders’ equity (deficit) 724 116 (40) (558) (700)
Solvency Ratio
Financial leverage1 18.42 110.47 — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 12,274 11,778 11,273 9,910 9,699
Adjusted total Motorola Solutions, Inc. stockholders’ equity (deficit) (281) (848) (773) (1,344) (1,459)
Solvency Ratio
Adjusted financial leverage2 — — — — —

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 13,336 ÷ 724 = 18.42

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 12,274 ÷ -281 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Motorola Solutions, Inc. 1,709 1,363 1,245 949 868
Total Motorola Solutions, Inc. stockholders’ equity (deficit) 724 116 (40) (558) (700)
Profitability Ratio
ROE1 236.05% 1,175.00% — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Motorola Solutions, Inc. 1,677 1,029 1,279 924 784
Adjusted total Motorola Solutions, Inc. stockholders’ equity (deficit) (281) (848) (773) (1,344) (1,459)
Profitability Ratio
Adjusted ROE2 — — — — —

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net earnings attributable to Motorola Solutions, Inc. ÷ Total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 100 × 1,709 ÷ 724 = 236.05%

2 Adjusted ROE = 100 × Adjusted net earnings attributable to Motorola Solutions, Inc. ÷ Adjusted total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 100 × 1,677 ÷ -281 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Motorola Solutions, Inc. 1,709 1,363 1,245 949 868
Total assets 13,336 12,814 12,189 10,876 10,642
Profitability Ratio
ROA1 12.81% 10.64% 10.21% 8.73% 8.16%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Motorola Solutions, Inc. 1,677 1,029 1,279 924 784
Adjusted total assets 12,274 11,778 11,273 9,910 9,699
Profitability Ratio
Adjusted ROA2 13.66% 8.74% 11.35% 9.32% 8.08%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net earnings attributable to Motorola Solutions, Inc. ÷ Total assets
= 100 × 1,709 ÷ 13,336 = 12.81%

2 Adjusted ROA = 100 × Adjusted net earnings attributable to Motorola Solutions, Inc. ÷ Adjusted total assets
= 100 × 1,677 ÷ 12,274 = 13.66%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Motorola Solutions Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.