Motorola Solutions Inc (MSI)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	6,799,000	6,632,000	5,762,000	5,411,000	5,636,000
Inventory	US$ in thousands	827,000	1,055,000	788,000	508,000	447,000
Inventory turnover		8.22	6.29	7.31	10.65	12.61

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $6,799,000K ÷ $827,000K
= 8.22

Inventory turnover for Motorola Solutions Inc has fluctuated over the past five years. In 2023, the inventory turnover ratio was 6.06, indicating that the company sold and replaced its inventory approximately 6.06 times during the year. This represents an improvement compared to the previous year (4.63), suggesting more efficiency in managing inventory levels.

However, the 2023 inventory turnover is still lower than the ratios reported in 2019 and 2020, which were 8.85 and 7.49 respectively. This indicates that the company might be holding onto inventory for a longer period in 2023 compared to those years.

Overall, while the 2023 inventory turnover ratio shows some improvement from the previous year, it is important for Motorola Solutions Inc to continue monitoring and managing its inventory effectively to ensure optimal turnover rates and avoid potential obsolescence or carrying costs.