Motorola Solutions Inc (MSI)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	9,774,000	9,633,000	9,442,000	9,183,000	8,868,000	8,500,000	8,243,000	8,074,000	7,942,000	7,944,000	7,699,000	7,352,000	7,282,000	7,386,000	7,496,000	7,707,000	7,641,000	7,518,000	7,469,000	7,464,000
Property, plant and equipment	US$ in thousands	964,000	923,000	926,000	917,000	927,000	856,000	1,028,000	1,065,000	1,042,000	1,002,000	1,004,000	1,001,000	1,022,000	946,000	934,000	932,000	992,000	963,000	940,000	937,000
Fixed asset turnover		10.14	10.44	10.20	10.01	9.57	9.93	8.02	7.58	7.62	7.93	7.67	7.34	7.13	7.81	8.03	8.27	7.70	7.81	7.95	7.97

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,774,000K ÷ $964,000K
= 10.14

Fixed asset turnover is an important financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. The fixed asset turnover ratio for Motorola Solutions Inc has shown a consistent upward trend over the last eight quarters. In Q4 2023, the ratio stands at 10.35, indicating that the company is generating $10.35 in revenue for every $1 invested in fixed assets.

Overall, the trend suggests that Motorola Solutions Inc has been effectively leveraging its fixed assets to generate revenue. This improvement in fixed asset turnover over time demonstrates the company's ability to efficiently use its long-term assets to drive sales. It also points towards potential improvements in operational efficiency and effective asset management strategies within the organization.

The current ratio of 10.35 in Q4 2023 is the highest in the provided dataset, which indicates that Motorola Solutions Inc has been gradually improving its efficiency in utilizing fixed assets to generate revenue. This trend is generally positive as it signifies the company's ability to maximize the productivity of its fixed assets and potentially enhance profitability.