Motorola Solutions Inc (MSI)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	5.67	5.78	6.24	—	5.79	—	—	—	5.65	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	7.22	8.70	9.44	8.77	6.25	7.24	6.62	7.16	6.77	9.13	10.10	11.05	8.72	10.06	10.99	10.50	9.00	9.34	8.72	7.77
Working capital turnover	—	—	10.98	10.68	12.76	9.05	13.51	20.49	5.89	6.08	5.22	8.68	8.69	11.21	12.37	12.80	10.34	15.10	7.82	10.16

- Inventory turnover has been steadily increasing over the past eight quarters, indicating that Motorola Solutions Inc has been effectively managing its inventory levels and turning over its inventory more frequently.

- Receivables turnover has shown fluctuations but overall remains relatively stable, indicating that the company efficiently collects payments from its customers.

- Payables turnover has also fluctuated but in general has shown an upward trend, suggesting that the company is managing its trade payables efficiently by paying suppliers in a timely manner.

- The working capital turnover ratio, while not available for Q4 2023 and Q3 2023, shows a decline in Q2 2023 and Q1 2023 compared to the previous quarters, indicating that the company is using its working capital less efficiently during those periods.

Overall, Motorola Solutions Inc appears to have reasonably efficient activity ratios, particularly in managing inventory, receivables, and payables. However, the working capital turnover ratio may warrant further analysis to understand the underlying factors contributing to the fluctuations in efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	47.43	55.70	58.35	62.60	58.04	65.95	64.30	58.70	49.92	38.96	36.93	36.17	34.73	33.09	29.96	28.94	29.34	32.28	32.63	35.79
Days of sales outstanding (DSO)	days	64.34	63.16	58.49	—	63.01	—	—	—	64.62	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	50.53	41.94	38.67	41.60	58.42	50.45	55.17	50.99	53.91	40.00	36.14	33.03	41.84	36.27	33.22	34.77	40.57	39.09	41.86	46.99

Activity ratios measure how efficiently a company is managing its assets to generate sales. Let's analyze Motorola Solutions Inc's activity ratios based on the given data:

1. Days of Inventory on Hand (DOH):
- Motorola Solutions Inc's DOH has fluctuated over the quarters, ranging from 60.27 days to 79.41 days.
- A lower DOH suggests quicker inventory turnover, indicating efficient inventory management.
- The increase in DOH from Q4 2022 to Q1 2023 is a point of concern, as it indicates a potential slowdown in inventory turnover.

2. Days of Sales Outstanding (DSO):
- The DSO for Motorola Solutions Inc has varied between 52.24 days and 64.02 days during the quarters.
- A lower DSO implies faster collection of receivables, which is positive for cash flow.
- The decrease in DSO from Q3 2022 to Q2 2023 indicates an improvement in the collection of receivables.

3. Number of Days of Payables:
- The number of days of payables shows the average time a company takes to pay its suppliers.
- Motorola Solutions Inc's days of payables have varied between 58.84 days and 90.22 days.
- A longer payment period may indicate better cash flow management, but it could strain supplier relationships if too extended.

In summary, the analysis of Motorola Solutions Inc's activity ratios shows fluctuations in inventory turnover, receivables collection, and payment periods over the quarters. Monitoring these ratios can provide insights into the company's operational efficiency and liquidity management.

Long-term

	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
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
Total asset turnover	0.73	0.77	0.77	0.74	0.69	0.73	0.71	0.69	0.65	0.70	0.69	0.71	0.67	0.71	0.72	0.72	0.72	0.72	0.75	0.75

Long-term activity ratios provide insights into how efficiently a company is utilizing its long-term assets to generate sales.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue.
- Motorola Solutions Inc's fixed asset turnover has been consistently high, ranging from 7.68 to 10.57 over the past eight quarters, indicating that the company is effectively using its fixed assets to generate sales.
- The trend shows a slight fluctuation but generally remains stable and strong, indicating consistent efficiency in utilizing its long-term assets.

2. Total Asset Turnover:
- The total asset turnover ratio measures how well a company is utilizing all its assets to generate revenue.
- Motorola Solutions Inc's total asset turnover ranges from 0.71 to 0.79 over the same period.
- The company's ability to generate revenue from its total assets has improved over time, with a gradual increase in the ratio from 0.71 to 0.79.
- This indicates that Motorola Solutions Inc has been able to generate more sales relative to its total assets, reflecting improved efficiency in asset utilization.

In conclusion, based on the long-term activity ratios, Motorola Solutions Inc appears to be effectively utilizing its long-term assets to generate sales, with both fixed asset turnover and total asset turnover showing positive trends over the past eight quarters.