Motorola Solutions Inc (MSI)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	10,818,000	10,655,000	10,421,000	10,196,000	9,978,000	9,837,000	9,654,000	9,391,000	9,112,000	8,725,000	8,459,000	8,290,000	8,171,000	8,124,000	7,885,000	7,532,000	7,414,000	7,517,000	7,643,000	7,885,000
Total current assets	US$ in thousands	6,479,000	5,808,000	5,517,000	5,521,000	5,669,000	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
Total current liabilities	US$ in thousands	5,055,000	4,665,000	4,644,000	4,626,000	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
Working capital turnover		7.60	9.32	11.94	11.39	—	—	11.23	10.92	13.11	9.29	13.87	21.04	6.06	6.22	5.34	8.89	8.85	11.41	12.61	13.10

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $10,818,000K ÷ ($6,479,000K – $5,055,000K)
= 7.60

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in using working capital.

Based on the provided data for Motorola Solutions Inc, the working capital turnover ratio has fluctuated over the periods outlined. In March 2020, the ratio was 13.10, indicating that the company generated $13.10 in revenue for every $1 of working capital invested. The ratio decreased gradually over the following quarters until December 2020, where it dropped to 8.85.

Subsequently, there was a slight improvement in the ratio in March 2021 and June 2021, reaching 8.89 and 5.34, respectively. However, the ratio saw a significant increase to 21.04 in March 2022, which may suggest a more efficient utilization of working capital during that period.

In the following quarters, the ratio experienced some fluctuations but generally remained above 9, indicating a relatively efficient use of working capital. By the end of December 2024, the working capital turnover ratio stood at 7.60.

Overall, the trend of Motorola Solutions Inc's working capital turnover ratio fluctuated, with periods of both improvement and decline. It is important for the company to monitor and manage its working capital effectively to sustain healthy operational efficiency and maximize profitability.