Analysis of Reportable Segments
Motorola Solutions Inc. operates in 2 segments: Products and Systems Integration and Software and Services.
Segment Profit Margin
Motorola Solutions Inc., profit margin by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Products and Systems Integration | 19.93% | 15.94% | 15.10% | 14.16% | 18.65% |
| Software and Services | 28.10% | 22.10% | 28.90% | 26.15% | 22.95% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Products and Systems Integration | Products and Systems Integration segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Software and Services | Software and Services segment profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Segment Profit Margin: Products and Systems Integration
Motorola Solutions Inc.; Products and Systems Integration; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating earnings | 1,244) | 913) | 760) | 656) | 994) |
| Net sales | 6,242) | 5,728) | 5,033) | 4,634) | 5,329) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 19.93% | 15.94% | 15.10% | 14.16% | 18.65% |
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
Segment profit margin = 100 × Operating earnings ÷ Net sales
= 100 × 1,244 ÷ 6,242 = 19.93%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Products and Systems Integration | Products and Systems Integration segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Software and Services
Motorola Solutions Inc.; Software and Services; segment profit margin calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating earnings | 1,050) | 748) | 907) | 727) | 587) |
| Net sales | 3,736) | 3,384) | 3,138) | 2,780) | 2,558) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 28.10% | 22.10% | 28.90% | 26.15% | 22.95% |
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
Segment profit margin = 100 × Operating earnings ÷ Net sales
= 100 × 1,050 ÷ 3,736 = 28.10%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Software and Services | Software and Services segment profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Segment Capital Expenditures to Depreciation
Motorola Solutions Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Products and Systems Integration | 1.17 | 0.97 | 1.03 | 1.01 | 1.20 |
| Software and Services | 1.63 | 1.72 | 1.33 | 1.21 | 1.44 |
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).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Products and Systems Integration | Products and Systems Integration segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Software and Services | Software and Services segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Segment Capital Expenditures to Depreciation: Products and Systems Integration
Motorola Solutions Inc.; Products and Systems Integration; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 97) | 77) | 90) | 91) | 98) |
| Depreciation expense | 83) | 79) | 87) | 90) | 82) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.17 | 0.97 | 1.03 | 1.01 | 1.20 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation expense
= 97 ÷ 83 = 1.17
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Products and Systems Integration | Products and Systems Integration segment capital expenditures to depreciation ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Segment Capital Expenditures to Depreciation: Software and Services
Motorola Solutions Inc.; Software and Services; segment capital expenditures to depreciation calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | 156) | 179) | 153) | 126) | 150) |
| Depreciation expense | 96) | 104) | 115) | 104) | 104) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.63 | 1.72 | 1.33 | 1.21 | 1.44 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation expense
= 156 ÷ 96 = 1.63
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Software and Services | Software and Services segment capital expenditures to depreciation ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Net sales
Motorola Solutions Inc., net sales by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Products and Systems Integration | 6,242) | 5,728) | 5,033) | 4,634) | 5,329) |
| Software and Services | 3,736) | 3,384) | 3,138) | 2,780) | 2,558) |
| Total | 9,978) | 9,112) | 8,171) | 7,414) | 7,887) |
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).
Operating earnings
Motorola Solutions Inc., operating earnings by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Products and Systems Integration | 1,244) | 913) | 760) | 656) | 994) |
| Software and Services | 1,050) | 748) | 907) | 727) | 587) |
| Total | 2,294) | 1,661) | 1,667) | 1,383) | 1,581) |
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).
Capital expenditures
Motorola Solutions Inc., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Products and Systems Integration | 97) | 77) | 90) | 91) | 98) |
| Software and Services | 156) | 179) | 153) | 126) | 150) |
| Total | 253) | 256) | 243) | 217) | 248) |
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).
Depreciation expense
Motorola Solutions Inc., depreciation expense by reportable segment
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Products and Systems Integration | 83) | 79) | 87) | 90) | 82) |
| Software and Services | 96) | 104) | 115) | 104) | 104) |
| Total | 179) | 183) | 202) | 194) | 186) |
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).