Motorola Solutions Inc (MSI)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	51.97	55.67	55.63	59.44	59.88	70.50	74.00	79.51	78.86	90.55	89.17	81.70	69.62	53.50	50.78	50.23	48.72	46.54	42.42	40.95
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	51.97	55.67	55.63	59.44	59.88	70.50	74.00	79.51	78.86	90.55	89.17	81.70	69.62	53.50	50.78	50.23	48.72	46.54	42.42	40.95

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 51.97 + — – —
= 51.97

The cash conversion cycle of Motorola Solutions Inc has shown fluctuations over the years based on the provided data. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to December 31, 2020, Motorola Solutions Inc experienced a gradual increase in its cash conversion cycle from 40.95 days to 48.72 days, indicating that the company took longer to convert its resources into cash during this period.

The trend continued in the following quarters, with the cash conversion cycle reaching its peak at 90.55 days on September 30, 2022. This significant increase suggests potential inefficiencies in managing inventory, accounts receivable, and payable.

However, the company managed to reduce its cash conversion cycle to 51.97 days by December 31, 2024, demonstrating an improvement in its operational efficiency. This decrease could be attributed to better inventory management, enhanced receivables collection processes, or extended payment terms with suppliers.

Overall, monitoring the cash conversion cycle is crucial for understanding how efficiently Motorola Solutions Inc manages its working capital and operational cash flow. A lower cash conversion cycle generally indicates a more efficient use of resources and quicker cash conversion, positively impacting the company's liquidity and profitability.