Motorola Solutions Inc. (NYSE:MSI)

Total Asset Turnover Ratios

Both reported and adjusted total asset turnover ratios show a slight decrease from 2019 through 2021, reaching their lowest points in 2021 (0.67 reported, 0.72 adjusted). From 2022 onwards, these ratios recover steadily, with 2023 values exceeding those of 2019, indicating an improvement in asset utilization efficiency over this period.

Current Ratios

The reported and adjusted current ratios generally increased from 2019 to 2021, suggesting improving short-term liquidity during this timeframe. However, in 2022 and 2023, a decline is observed, reaching near 1.00 in 2023 for both metrics, which implies a reduction in liquidity and potentially tighter working capital management.

Debt to Equity Ratio

Reported debt to equity ratio data are only available for 2022 and 2023, showing a substantial decrease from 51.84 in 2022 to 8.31 in 2023. This significant drop may indicate a major deleveraging effort or equity base change. Adjusted data are unavailable for this measure.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios demonstrate a consistent declining trend from 2019 through 2023. This steady reduction suggests a gradual decrease in financial leverage and reliance on debt financing relative to total capital over time.

Financial Leverage

Reported financial leverage figures available for 2022 and 2023 exhibit a marked decline from 110.47 to 18.42, indicating a substantial reduction in leverage during this period. Adjusted data are not provided.

Net Profit Margin

Reported net profit margin increased from 11.01% in 2019 to 15.24% in 2021, followed by a slight dip in 2022, and a peak at 17.13% in 2023. Adjusted margins are more volatile, peaking in 2021 at 15.92%, dropping notably in 2022 to 9.55%, and recovering to 16.81% in 2023. This overall trend reflects strong profitability with some fluctuations potentially due to adjustments in accounting or operational factors.

Return on Equity (ROE)

Reported ROE data are limited to the years 2022 and 2023, showing exceedingly high values (1175% and 236.05%, respectively), which are atypical and may indicate extraordinary gains or changes in equity structure. Adjusted ROE data are unavailable.

Return on Assets (ROA)

Both reported and adjusted ROA metrics show growth from 2019 through 2021, with reported ROA increasing from 8.16% to 10.21%, and adjusted ROA showing similar positivity. However, in 2022, adjusted ROA declines sharply to 7.35% while reported ROA continues a modest increase. By 2023, both reported and adjusted ROA reach their highest points (12.81% and 13.59%, respectively), indicating improved asset profitability.

The data presents financial metrics over a five-year period, focusing on net sales, asset values, and asset turnover ratios, both reported and adjusted.

Net Sales

Net sales demonstrate a generally positive trend from 2019 through 2023, increasing from 7,887 million US$ in 2019 to 9,978 million US$ in 2023. There is an observed dip in 2020 to 7,414 million US$, likely reflecting external market or economic impacts. Subsequent years show strong recovery and growth, with 2023 recording the highest value within the observed period.

Total Assets

Total assets have shown consistent growth, rising each year from 10,642 million US$ in 2019 to 13,336 million US$ in 2023. This steady increase suggests ongoing investments or acquisitions expanding the company’s asset base.

Reported Total Asset Turnover

The reported total asset turnover ratio illustrates a decline from 0.74 in 2019 to 0.67 in 2021, indicating a decreased efficiency in using assets to generate sales during these years. However, from 2021 onwards, the ratio improves, reaching 0.75 in 2023. This upward movement aligns with the growth in net sales and suggests improved operational efficiency or optimized asset utilization in recent years.

Adjusted Total Assets

Adjusted total assets similarly rise year-over-year, from 9,762 million US$ in 2019 to 12,343 million US$ in 2023. The adjusted figures remain consistently below reported total assets, reflecting possible reclassifications or valuation adjustments. The steady increase in this metric aligns with the trend seen in reported total assets, confirming expansion of asset base on an adjusted basis as well.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio mirrors the overall pattern seen with the reported figure but remains slightly higher throughout the years. It decreases from 0.81 in 2019 to 0.72 in 2021, indicating a reduction in asset efficiency initially, followed by a rebound to 0.81 in 2023. By the last year, the ratio returns to its initial level, supporting the conclusion of improved asset utilization efficiency.

In summary, the company’s operational performance reveals a period of challenge around 2020-2021, with declines in sales and asset efficiency ratios. However, subsequent years reflect recovery and growth, characterized by rising net sales and total assets, alongside improving asset turnover ratios. The trajectory toward 2023 indicates enhanced productivity in asset use and successful growth initiatives.

The analysis of the provided financial data reveals several distinct trends concerning liquidity and working capital management over the period from 2019 to 2023.

Current Assets

Current assets show a generally increasing trajectory, rising from $4,178 million in 2019 to $5,725 million in 2023. This reflects a positive trend in the availability of liquid assets or assets that can be readily converted into cash to meet short-term obligations.

Current Liabilities

Current liabilities also increase over the same period but at a notably higher rate, moving from $3,439 million in 2019 to $5,736 million in 2023. The growth in liabilities outpaces the growth in current assets, which may indicate increasing short-term financial obligations or operational expenses.

Reported Current Ratio

The reported current ratio, which is the ratio of current assets to current liabilities, experiences moderate fluctuations throughout the period. It starts at 1.21 in 2019, peaks at 1.33 in 2021, and declines steadily thereafter to 1.00 by 2023. This decrease signals a deterioration in the company's ability to cover its short-term liabilities with its current assets.

Adjusted Current Assets and Adjusted Current Ratio

Adjusted current assets consistently remain slightly above reported current assets, increasing from $4,241 million in 2019 to $5,794 million in 2023. Correspondingly, the adjusted current ratio remains marginally higher than the reported current ratio but follows a similar pattern, rising to 1.35 in 2021 before descending to approximately 1.01 in 2023. This parallel trend indicates the adjustments do not significantly alter the overall liquidity perspective but confirm the weakening short-term financial position.

In summary, while the company's current assets have grown over the five-year span, the pace of growth in current liabilities has been proportionally faster, resulting in a compressed current ratio nearing the threshold of 1.0 by 2023. This trend reflects a decline in liquidity buffer, suggesting potential pressure on the company's short-term financial flexibility and a need for attention to working capital management going forward.

The financial data indicates a consistent increase in total debt over the five-year period from 2019 to 2023. Total debt rose from US$5,129 million in 2019 to US$6,018 million in 2023, reflecting steady growth in the company’s leverage obligations.

Stockholders’ equity showed a significant positive trend over the same period. Initially, equity was negative at -US$700 million in 2019 but improved each year, reaching a positive US$724 million by the end of 2023. This indicates a recovery and strengthening of the company’s financial position, moving from a deficit to substantial equity.

The reported debt to equity ratio, available only for the years 2022 and 2023, demonstrates a dramatic decrease—from 51.84 in 2022 to 8.31 in 2023. This sharp decline illustrates the effect of the improved equity base in reducing the relative burden of debt against equity, suggesting enhanced financial stability and a stronger balance sheet.

When considering adjusted values, total adjusted debt also experienced an upward trend, increasing from US$5,748 million in 2019 to US$6,550 million in 2023. Adjusted stockholders’ equity, while still negative throughout the period, showed improvement from -US$1,301 million in 2019 to -US$169 million in 2023. This narrowing of the equity deficit implies a positive move toward financial health, though adjusted equity has yet to fully turn positive.

Adjusted debt to equity ratios are not reported, limiting analysis on adjusted leverage levels. However, the combination of rising adjusted debt and improving adjusted equity values suggests a gradual reduction in financial risk.

Total Debt Trend

Continuous increase over the period, indicating higher leverage.

Stockholders’ Equity Trend

Improvement from negative to positive territory, signaling strengthened financial position.

Debt to Equity Ratio

Significant decrease in reported ratio from 2022 to 2023, driven by equity growth.

Adjusted Debt and Equity

Adjusted debt increased, while adjusted equity improved but remained negative, suggesting ongoing efforts to reduce financial risk.

Financial Stability Insights

Overall, the patterns indicate enhanced capital structure management and a gradual shift towards improved solvency.

Total Debt

The total debt has exhibited a gradual increase over the five-year period, rising from $5,129 million to $6,018 million. The growth was more pronounced between 2020 and 2022, but it plateaued in 2023.

Total Capital

Total capital followed an upward trajectory throughout the period, increasing from $4,429 million in 2019 to $6,742 million in 2023, showing consistent growth each year.

Reported Debt to Capital Ratio

The reported debt to capital ratio steadily declined from 1.16 in 2019 to 0.89 in 2023, indicating an improvement in the capital structure and lower relative debt burden over time.

Adjusted Total Debt

Adjusted total debt mirrored the rise seen in total debt, expanding from $5,748 million in 2019 to $6,550 million in 2023. This increase was fairly steady, though the rate of growth slowed somewhat after 2021.

Adjusted Total Capital

Adjusted total capital also increased consistently from $4,447 million to $6,381 million between 2019 and 2023, reflecting an overall strengthening in capital resources.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio decreased from 1.29 in 2019 to 1.03 in 2023, showing a marked reduction in relative debt levels when considering adjustments. The ratio remained relatively stable between 2021 and 2022 before improving further in 2023.

The financial data reveals several notable trends in the company's asset base and equity position over the five-year period from 2019 to 2023.

Total Assets

Total assets show a consistent upward trend throughout the period. Starting at US$10,642 million in 2019, total assets increased annually, reaching US$13,336 million by the end of 2023. This growth signifies an expansion of the company's resource base over time.

Stockholders’ Equity (Reported)

Reported stockholders' equity exhibits a significant improvement trend. Beginning with a deficit of US$700 million in 2019, the deficit steadily decreased each year, turning positive by 2022 at US$116 million and further increasing to US$724 million by 2023. This transition from negative to positive equity reflects a strengthening financial position and possibly effective equity-boosting measures or profit retention.

Reported Financial Leverage

Financial leverage is only available for 2022 and 2023, showing a pronounced decline from an extremely high ratio of 110.47 to 18.42. This dramatic reduction suggests a substantial decrease in reliance on debt relative to equity, possibly due to the normalization of equity figures and deleveraging efforts.

Adjusted Total Assets

Adjusted total assets follow a similar, albeit slightly lower, growth pattern compared to reported total assets. Values increased from US$9,762 million in 2019 to US$12,343 million in 2023, indicating consistent asset growth after adjusting for certain factors or reclassifications.

Adjusted Stockholders’ Equity (Deficit)

Adjusted stockholders' equity remains negative throughout the period but shows a clear trend toward reduction of the deficit. The deficit narrowed from US$1,301 million in 2019 to US$169 million in 2023. Despite remaining negative, the continuous improvement implies ongoing efforts to enhance the equity position under adjusted measures.

Adjusted Financial Leverage

No data is available for adjusted financial leverage in the provided period, limiting the ability to analyze leverage trends based on adjusted figures.

In summary, the company demonstrates a steady asset growth and a marked improvement in equity, shifting from negative to positive territory in reported metrics. The reported financial leverage exhibits a significant decrease, indicating a reduction in financial risk or improved capitalization. The adjusted figures parallel these trends but show persistent negative equity, possibly reflecting conservative adjustments or unresolved structural equity challenges. The absence of adjusted leverage data restricts a complete assessment of financing structure trends under adjusted conditions.

Net Earnings Attributable to Motorola Solutions, Inc.

There is a consistent upward trend in net earnings from 2019 to 2023, increasing from $868 million to $1709 million. This represents a near doubling over the five-year period, with particularly notable growth between 2022 and 2023.

Net Sales

Net sales show general growth throughout the years, starting at $7887 million in 2019 and rising to $9978 million in 2023. The increases are steady, with the largest annual increment observed between 2021 and 2022, suggesting expanding business operations or higher revenue generation capacity.

Reported Net Profit Margin

The reported net profit margin demonstrates improvement over the period, increasing from 11.01% in 2019 to 17.13% in 2023. The margin peaked slightly in 2021 at 15.24%, experienced a modest dip in 2022, and then rose to the highest point in 2023. This indicates enhanced profitability relative to sales despite the year-to-year variations.

Adjusted Net Earnings

Adjusted net earnings exhibit more volatility compared to net earnings. There was an initial decline from $1118 million in 2019 to $935 million in 2020, followed by a recovery and peak at $1301 million in 2021. However, a significant drop to $870 million occurred in 2022 before a strong rebound to $1677 million in 2023. This suggests fluctuating adjustments possibly due to extraordinary items or one-time factors affecting reported figures.

Adjusted Net Profit Margin

The adjusted net profit margin follows a similar variable pattern as adjusted net earnings. It decreased from 14.18% in 2019 to 12.61% in 2020, increased to 15.92% in 2021, then fell sharply to 9.55% in 2022, and finally rose again to 16.81% in 2023. The dip in 2022 indicates a temporary decline in operational profitability when excluding certain items, but the margin’s recovery in 2023 signals restored efficiency or improved earnings quality.

The annual financial data reveals distinct trends in profitability, equity, and returns over the five-year period ending in 2023.

Net Earnings

Net earnings attributable to the entity increased consistently from 868 million US dollars in 2019 to 1709 million US dollars in 2023. The growth was steady each year, indicating improving profitability and operational performance.

Total Stockholders’ Equity

The total stockholders’ equity experienced a significant upward trend from a deficit of 700 million US dollars in 2019 to a positive 724 million US dollars by 2023. This shift from negative to positive equity suggests a strengthening balance sheet and improved financial position over the period. The equity deficit diminished steadily each year until turning positive in 2022, continuing to increase in 2023.

Return on Equity (ROE)

Reported ROE data was unavailable until 2022, with a startlingly high value of 1175% recorded that year, followed by 236.05% in 2023. These figures are exceptionally elevated and may reflect distortions due to previously negative or minimal equity values, making normal ROE interpretation challenging for these years.

Adjusted Net Earnings

Adjusted net earnings showed variability, starting at 1118 million US dollars in 2019 and decreasing to 870 million US dollars in 2022 before rising sharply to 1677 million US dollars in 2023. This pattern suggests some operational or accounting adjustments affecting profitability, with a strong recovery or improvement reflected in the final year.

Adjusted Total Stockholders’ Equity

The adjusted equity figures remained negative throughout the period but showed a decreasing deficit, improving from -1301 million US dollars in 2019 to -169 million US dollars in 2023. Despite still being negative, this trend indicates progress toward equity stabilization when adjusted for certain factors.

Adjusted Return on Equity

No data was provided for adjusted ROE, limiting analysis in this regard.

Overall, the data suggests improving profitability and financial strength as evidenced by rising net earnings and a transition from equity deficit to surplus on a reported basis. The high reported ROE percentages in 2022 and 2023 likely reflect the impact of previously low or negative equity bases. Adjusted figures indicate ongoing challenges in fully recovering stockholders’ equity but a positive momentum in earnings by the end of the period.

Net Earnings Attributable to Motorola Solutions, Inc.

Net earnings exhibited a consistent upward trend over the five-year period, increasing from $868 million in 2019 to $1,709 million in 2023. The growth was relatively steady each year, with a particularly notable increase between 2022 and 2023.

Total Assets

Total assets demonstrated gradual growth, rising from $10,642 million in 2019 to $13,336 million in 2023. The increase in assets was steady, showing the company's expanding asset base year over year.

Reported Return on Assets (ROA)

Reported ROA improved consistently across the period, moving from 8.16% in 2019 to 12.81% in 2023. This indicates enhanced efficiency in generating earnings from the asset base, with a particularly strong increase in the final year.

Adjusted Net Earnings

Adjusted net earnings fluctuated over the years, initially decreasing from $1,118 million in 2019 to $935 million in 2020, then rising to $1,301 million in 2021. A decline to $870 million occurred in 2022, followed by a significant recovery to $1,677 million in 2023. The variability suggests the presence of adjustments that impact profitability in certain years.

Adjusted Total Assets

Adjusted total assets increased steadily from $9,762 million in 2019 to $12,343 million in 2023. This trajectory mirrors the growth seen in reported total assets, albeit at a consistently lower base due to adjustments applied.

Adjusted Return on Assets (ROA)

Adjusted ROA demonstrated more volatility compared to the reported ROA. Starting at 11.45% in 2019, it declined to 9.36% in 2020, then increased to 11.47% in 2021 before dropping sharply to 7.35% in 2022. The metric rebounded strongly in 2023 to 13.59%, surpassing previous years. This fluctuation highlights varying impacts of adjustments on asset efficiency and profitability over time.