Motorola Solutions Inc (MSI)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	6,364,000	6,284,000	6,380,000	6,309,000	6,635,000	6,403,000	6,080,000	5,920,000	5,762,000	5,658,000	5,525,000	5,349,000	5,339,000	5,394,000	5,471,000	5,574,000	5,560,000	5,201,000	4,743,000	4,334,000
Inventory	US$ in thousands	827,000	959,000	1,020,000	1,082,000	1,055,000	1,157,000	1,071,000	952,000	788,000	604,000	559,000	530,000	508,000	489,000	449,000	442,000	447,000	460,000	424,000	425,000
Inventory turnover		7.70	6.55	6.25	5.83	6.29	5.53	5.68	6.22	7.31	9.37	9.88	10.09	10.51	11.03	12.18	12.61	12.44	11.31	11.19	10.20

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,364,000K ÷ $827,000K
= 7.70

Motorola Solutions Inc's inventory turnover has exhibited fluctuations over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by evaluating how many times its inventory is sold and replaced within a specific period.

In Q4 2023, the inventory turnover ratio was 6.06, indicating that the company efficiently turned over its inventory 6.06 times during the quarter. This represents an improvement compared to the previous quarter's ratio of 5.18 in Q3 2023.

However, when assessing the trend over the past eight quarters, we can observe variations in inventory turnover ratios. The ratios ranged from a low of 4.03 in Q3 2022 to a high of 6.06 in Q4 2023.

Overall, the inventory turnover ratios suggest that Motorola Solutions Inc has shown fluctuations in how effectively it manages its inventory. It is essential for the company to closely monitor and optimize its inventory levels to ensure efficient operations and maximize profitability.