Motorola Solutions Inc (MSI)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 5,305,000 | 5,008,000 | 4,883,000 | 4,131,000 | 3,806,000 |
| Inventory | US$ in thousands | 766,000 | 827,000 | 1,055,000 | 788,000 | 508,000 |
| Inventory turnover | 6.93 | 6.06 | 4.63 | 5.24 | 7.49 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $5,305,000K ÷ $766,000K
= 6.93
The inventory turnover of Motorola Solutions Inc has shown a decreasing trend over the past five years, declining from 7.49 in December 2020 to 5.24 in December 2021, and further dropping to 4.63 in December 2022. However, there was a slight improvement in December 2023 with a turnover of 6.06, followed by an increase to 6.93 in December 2024.
A high inventory turnover ratio indicates that the company is efficiently managing its inventory by quickly selling its products. In contrast, a decrease in the inventory turnover ratio may suggest that the company is experiencing difficulties in selling its inventory or may have excess obsolete inventory on hand.
The consistent fluctuations in Motorola Solutions Inc's inventory turnover ratio over the years indicate the need for the company to effectively manage its inventory levels to optimize its operations and financial performance. Further analysis of the company's inventory management practices and market conditions may provide insights into the reasons behind these fluctuations.
Peer comparison
Dec 31, 2024