Motorola Solutions Inc (MSI)

Cash conversion cycle

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	52.70	60.27	78.86	69.62	48.72
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—
Cash conversion cycle	days	52.70	60.27	78.86	69.62	48.72

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 52.70 + — – —
= 52.70

The cash conversion cycle for Motorola Solutions Inc has shown some fluctuations over the past five years.

In December 2020, the cash conversion cycle stood at 48.72 days, indicating that on average, it took the company approximately 48.72 days to convert its investments in inventory back into cash.

By the end of December 2021, the cash conversion cycle increased to 69.62 days, suggesting a delay in the company's ability to convert its resources into cash. This could be due to longer inventory turnover or slower collection from customers.

The trend continued in December 2022, with the cash conversion cycle reaching 78.86 days, indicating a further slowdown in the company's cash conversion process. This may lead to increased working capital requirements and potential liquidity challenges.

There was a slight improvement in December 2023, as the cash conversion cycle decreased to 60.27 days, hinting at some efforts to streamline operations and improve cash flow efficiency.

By the end of December 2024, the cash conversion cycle further improved to 52.70 days, signaling a more efficient cash conversion process compared to the previous year. This suggests that the company may have taken steps to enhance inventory management and receivables collection.

Overall, monitoring the cash conversion cycle is crucial for assessing a company's operational efficiency and liquidity management. A lower cash conversion cycle indicates faster cash generation, while a higher cycle may signal potential working capital constraints. Motorola Solutions Inc should continue to focus on optimizing its cash conversion cycle to ensure sustainable operations and financial health.