Motorola Solutions Inc (MSI)

Working capital 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
Total current assets	US$ in thousands	5,725,000	5,032,000	4,626,000	4,826,000	5,255,000	4,707,000	4,411,000	4,280,000	5,412,000	4,735,000	4,660,000	3,942,000	4,327,000	3,971,000	4,086,000	4,481,000	4,178,000	4,154,000	3,831,000	3,714,000
Total current liabilities	US$ in thousands	5,736,000	5,288,000	3,766,000	3,966,000	4,560,000	3,768,000	3,801,000	3,886,000	4,063,000	3,429,000	3,184,000	3,095,000	3,489,000	3,312,000	3,480,000	3,879,000	3,439,000	3,656,000	2,876,000	2,979,000
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,774,000K ÷ ($5,725,000K – $5,736,000K)
= —

Motorola Solutions Inc's working capital turnover has shown varying levels in recent quarters. In Q1 2022, the ratio stood at 21.04, indicating that the company generated $21.04 in revenue for each dollar of working capital invested. This high value suggests efficient utilization of working capital to generate sales.

Subsequently, the ratio decreased in Q2 2022 to 13.87, then dropped further in Q3 2022 to 9.29, before slightly increasing in Q4 2022 to 13.11. The declining trend in Q3 and the subsequent recovery in Q4 could signify fluctuations in sales or changes in working capital management.

In Q1 2023, the working capital turnover improved to 10.92, indicating a more efficient use of working capital compared to the previous two quarters. This suggests that the company was able to generate more revenue relative to its working capital investment in Q1 2023.

However, in Q2 2023, the ratio remained stable at 11.23, indicating a similar level of working capital efficiency as in the previous quarter. It is essential for Motorola Solutions Inc to maintain optimal levels of working capital turnover to ensure effective utilization of resources in generating revenue. The company's management should continue monitoring and analyzing this ratio to make informed decisions regarding its working capital management strategies.