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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Motorola Solutions Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Jun 29, 2024 182.54% = 10.97% × 16.64
Mar 30, 2024 267.18% = 10.45% × 25.58
Dec 31, 2023 236.05% = 12.81% × 18.42
Sep 30, 2023 470.17% = 13.69% × 34.35
Jul 1, 2023 450.15% = 12.38% × 36.36
Apr 1, 2023 587.18% = 11.12% × 52.79
Dec 31, 2022 1,175.00% = 10.64% × 110.47
Oct 1, 2022 — = 10.11% × —
Jul 2, 2022 — = 10.31% × —
Apr 2, 2022 — = 10.89% × —
Dec 31, 2021 — = 10.21% × —
Oct 2, 2021 — = 11.00% × —
Jul 3, 2021 — = 10.37% × —
Apr 3, 2021 — = 9.56% × —
Dec 31, 2020 — = 8.73% × —
Sep 26, 2020 — = 7.53% × —
Jun 27, 2020 — = 8.12% × —
Mar 28, 2020 — = 8.53% × —
Dec 31, 2019 — = 8.16% × —
Sep 28, 2019 — = — × —
Jun 29, 2019 — = — × —
Mar 30, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2024 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Motorola Solutions Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jun 29, 2024 182.54% = 14.05% × 0.78 × 16.64
Mar 30, 2024 267.18% = 13.65% × 0.77 × 25.58
Dec 31, 2023 236.05% = 17.13% × 0.75 × 18.42
Sep 30, 2023 470.17% = 17.30% × 0.79 × 34.35
Jul 1, 2023 450.15% = 15.71% × 0.79 × 36.36
Apr 1, 2023 587.18% = 14.63% × 0.76 × 52.79
Dec 31, 2022 1,175.00% = 14.96% × 0.71 × 110.47
Oct 1, 2022 — = 13.47% × 0.75 × —
Jul 2, 2022 — = 14.22% × 0.72 × —
Apr 2, 2022 — = 15.30% × 0.71 × —
Dec 31, 2021 — = 15.24% × 0.67 × —
Oct 2, 2021 — = 15.46% × 0.71 × —
Jul 3, 2021 — = 14.64% × 0.71 × —
Apr 3, 2021 — = 13.22% × 0.72 × —
Dec 31, 2020 — = 12.80% × 0.68 × —
Sep 26, 2020 — = 10.38% × 0.73 × —
Jun 27, 2020 — = 11.02% × 0.74 × —
Mar 28, 2020 — = 11.59% × 0.74 × —
Dec 31, 2019 — = 11.01% × 0.74 × —
Sep 28, 2019 — = — × — × —
Jun 29, 2019 — = — × — × —
Mar 30, 2019 — = — × — × —

Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).

The primary reason for the decrease in return on equity ratio (ROE) over Q2 2024 is the decrease in financial leverage ratio.

Two-Component Disaggregation of ROA

Motorola Solutions Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jun 29, 2024 10.97% = 14.05% × 0.78
Mar 30, 2024 10.45% = 13.65% × 0.77
Dec 31, 2023 12.81% = 17.13% × 0.75
Sep 30, 2023 13.69% = 17.30% × 0.79
Jul 1, 2023 12.38% = 15.71% × 0.79
Apr 1, 2023 11.12% = 14.63% × 0.76
Dec 31, 2022 10.64% = 14.96% × 0.71
Oct 1, 2022 10.11% = 13.47% × 0.75
Jul 2, 2022 10.31% = 14.22% × 0.72
Apr 2, 2022 10.89% = 15.30% × 0.71
Dec 31, 2021 10.21% = 15.24% × 0.67
Oct 2, 2021 11.00% = 15.46% × 0.71
Jul 3, 2021 10.37% = 14.64% × 0.71
Apr 3, 2021 9.56% = 13.22% × 0.72
Dec 31, 2020 8.73% = 12.80% × 0.68
Sep 26, 2020 7.53% = 10.38% × 0.73
Jun 27, 2020 8.12% = 11.02% × 0.74
Mar 28, 2020 8.53% = 11.59% × 0.74
Dec 31, 2019 8.16% = 11.01% × 0.74
Sep 28, 2019 — = — × —
Jun 29, 2019 — = — × —
Mar 30, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).

The primary reason for the increase in return on assets ratio (ROA) over Q2 2024 is the increase in profitability measured by net profit margin ratio.