Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Profitability Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
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Long-term Activity Ratios (Summary)
Motorola Solutions Inc., long-term (investment) activity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net fixed asset turnover
- The net fixed asset turnover ratio exhibits a fluctuating yet generally upward trajectory over the five-year period. Starting at 7.95 in 2019, it dipped to 7.25 in 2020 but rebounded to 7.84 in 2021, followed by a notable increase to 9.83 in 2022 and further to 10.35 in 2023. This indicates an improving efficiency in utilizing fixed assets to generate sales, especially from 2021 onwards.
- Net fixed asset turnover including operating lease, right-of-use asset
- A similar pattern is observed in the adjusted net fixed asset turnover ratio. Beginning at 5.10 in 2019, the ratio slightly declined to 4.98 in 2020, then rose steadily to 5.74 in 2021, 6.45 in 2022, and 6.84 in 2023. The inclusion of lease-related assets reduces the turnover ratios compared to the basic measure but confirms an upward trend in asset utilization efficiency over time.
- Total asset turnover
- The total asset turnover ratio shows a modest decline from 0.74 in 2019 to 0.67 in 2021, suggesting a slight decrease in how effectively the company uses its total assets to generate revenue. However, the ratio improves to 0.71 in 2022 and further to 0.75 in 2023, indicating a recovery in asset productivity towards the end of the period.
- Equity turnover
- Equity turnover data is unavailable for the initial three years. In 2022, an unusually high ratio of 78.55 is reported, followed by a significant decline to 13.78 in 2023. The extraordinary value in 2022 may indicate an anomaly or exceptional event impacting equity efficiency, while the sharp decrease in 2023 suggests normalization or changes in equity or revenue components.
Net Fixed Asset Turnover
Motorola Solutions Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2023 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The financial data exhibits several key trends over the five-year period ending in 2023. Net sales show a consistent upward trajectory, indicating growth in revenue generation. Beginning at 7,887 million US dollars in 2019, net sales experienced a slight decline in 2020 to 7,414 million US dollars, likely influenced by external economic factors. However, a recovery and subsequent growth are observed from 2021 onward, with net sales rising to 8,171 million in 2021, 9,112 million in 2022, and reaching 9,978 million US dollars in 2023.
In contrast, the net value of property, plant, and equipment (PPE) has remained relatively stable, with minor fluctuations. The PPE value started at 992 million US dollars in 2019, increased slightly to 1,022 million in 2020 and 1,042 million in 2021, which suggests some capital investment or asset acquisition during these years. A decrease occurs in 2022 to 927 million US dollars, followed by a modest rise to 964 million in 2023. This could reflect asset disposals, depreciation, or adjustments in capital expenditure strategy.
The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate sales, has generally improved over the period. Starting from a ratio of 7.95 in 2019, it dipped to 7.25 in 2020, paralleling the decline in sales, before climbing to 7.84 in 2021. A significant increase is noted in 2022, with the ratio reaching 9.83, and further increasing to 10.35 in 2023. This trend indicates enhanced utilization of fixed assets, contributing to greater sales relative to fixed asset investment.
- Net Sales
- Shows a temporary decline in 2020 followed by sustained growth from 2021 through 2023, indicating recovery and expansion in revenue.
- Property, Plant and Equipment, Net
- Relatively stable with minor annual variations; a peak in 2021 followed by a decline and slight recovery suggesting changes in capital asset management.
- Net Fixed Asset Turnover
- Improved significantly after an initial drop in 2020, reflecting better efficiency in asset utilization aligned with increasing sales.
Overall, the analysis points to a period of adjustment in 2020, with subsequent recovery and operational improvements that resulted in stronger sales and more efficient use of fixed assets. The stable net fixed asset base combined with rising turnover suggests effective asset management and positive business momentum in recent years.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Motorola Solutions Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Property, plant and equipment, net | ||||||
| Right-of-use operating lease assets | ||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | ||||||
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).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period from 2019 to 2023. Net sales demonstrate a generally upward trajectory, with a decrease observed in 2020 followed by consistent growth in subsequent years. This pattern indicates resilience and recovery, with net sales increasing from $7,887 million in 2019 to $9,978 million in 2023.
The value of property, plant, and equipment, including operating lease right-of-use assets, shows a gradual decline from $1,546 million in 2019 to $1,412 million in 2022, before slightly increasing to $1,459 million in 2023. This trend suggests a reduction in investment or depreciation exceeding new acquisitions during most years, followed by moderate reinvestment or asset additions at the end of the period.
Net fixed asset turnover, which measures the efficiency of using fixed assets to generate sales, improved steadily across the timeframe. The ratio increased from 5.1 in 2019 to 6.84 in 2023, reflecting enhanced asset utilization. This increase indicates that the company generated increasingly more sales per unit of fixed asset value, improving operational efficiency.
- Net Sales
- Declined by approximately 6% in 2020 compared to 2019, followed by continuous growth each year, culminating in a total increase of approximately 27% over the five-year span.
- Property, Plant, and Equipment
- Displayed a downward trend from 2019 to 2022, decreasing by about 8.6%, with a modest rebound of about 3.3% in 2023.
- Net Fixed Asset Turnover
- Consistently improved annually, rising about 34% from 2019 to 2023, indicating greater efficiency in asset usage to generate revenue.
Overall, the company shows stronger sales growth combined with more efficient use of fixed assets, despite a reduction in the asset base over most of the period. This pattern suggests successful management strategies in maximizing output from existing fixed asset investments.
Total Asset Turnover
Motorola Solutions Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Total Asset Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period from 2019 to 2023.
- Net Sales
- Net sales demonstrate an overall upward trajectory, beginning at US$7,887 million in 2019 and increasing to US$9,978 million by 2023. Although there was a slight decline in 2020 to US$7,414 million, subsequent years showed a consistent rise, reaching the highest value in the final year of the period analyzed. This suggests a recovery and growth in revenue streams following the 2020 downturn.
- Total Assets
- Total assets have steadily increased throughout the period, from US$10,642 million in 2019 to US$13,336 million in 2023. This indicates a continuous expansion of the company's asset base, supporting its operational and strategic initiatives.
- Total Asset Turnover
- The total asset turnover ratio, measuring efficiency in generating sales from assets, started at 0.74 in 2019 and experienced a decline through 2020 and 2021, reaching a low of 0.67. However, it showed improvement in 2022 and increased further to 0.75 by 2023, slightly surpassing the initial ratio. This improvement implies that the company became more efficient in utilizing its assets to generate sales in the latter years, reversing the downward trend observed during the initial years.
Overall, the data indicates that after a period marked by a decrease in sales and efficiency in asset utilization around 2020 and 2021, both revenue and operational efficiency improved significantly by 2023. The growing asset base accompanied by improved asset turnover ratio suggests enhanced operational effectiveness and growth capacity.
Equity Turnover
Motorola Solutions Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total Motorola Solutions, Inc. stockholders’ equity (deficit) | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Apple Inc. | ||||||
| Arista Networks Inc. | ||||||
| Cisco Systems Inc. | ||||||
| Dell Technologies Inc. | ||||||
| Super Micro Computer Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Technology Hardware & Equipment | ||||||
| Equity Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2023 Calculation
Equity turnover = Net sales ÷ Total Motorola Solutions, Inc. stockholders’ equity (deficit)
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates a generally positive trend in net sales over the five-year period. Net sales decreased slightly from 7,887 million US dollars in 2019 to 7,414 million in 2020, reflecting a contraction possibly due to external factors affecting the business environment. Subsequently, net sales steadily increased each year, reaching 9,978 million US dollars in 2023, which represents a significant recovery and growth exceeding the initial 2019 level.
Regarding stockholders' equity, there is a clear upward trajectory. The company started with a deficit of 700 million US dollars in 2019, which decreased to a deficit of 558 million in 2020 and further narrowed to 40 million in 2021. By 2022, stockholders’ equity turned positive, reaching 116 million US dollars, and continued to strengthen significantly to 724 million in 2023. This improving equity position reflects enhanced financial stability and suggests improved profitability or capital management over this timeframe.
Equity turnover ratio data is only available for the years 2022 and 2023, showing a notable decline from 78.55 in 2022 to 13.78 in 2023. While the high value in 2022 might indicate extraordinarily high sales relative to equity, the sharp decrease in 2023 could imply a relative increase in equity or a normalization of sales per unit of equity. This ratio's volatility suggests a changing relationship between generated sales and equity, warranting further investigation into operational efficiency or capital structure changes.
- Net Sales
- Decreased initially in 2020, then increased consistently from 2021 through 2023, ending higher than the 2019 baseline.
- Stockholders’ Equity
- Improved steadily from a significant deficit in 2019 to a positive and growing amount by 2023, indicating strengthening financial health.
- Equity Turnover Ratio
- Data shows a very high ratio in 2022 followed by a sharp decline in 2023, reflecting significant fluctuations in sales relative to equity.