Motorola Solutions Inc (MSI)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	1,705,000	1,325,000	1,874,000	1,254,000	1,001,000
Short-term investments	US$ in thousands	28,000	21,000	69,000	19,000	25,000
Total current liabilities	US$ in thousands	5,736,000	4,560,000	4,063,000	3,489,000	3,439,000
Cash ratio		0.30	0.30	0.48	0.36	0.30

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,705,000K + $28,000K) ÷ $5,736,000K
= 0.30

The cash ratio of Motorola Solutions Inc has exhibited fluctuations over the past five years. The ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, decreased from 0.67 in 2019 to 0.54 in 2023. This may indicate a reduction in the company's liquidity position in the most recent year.

However, it is worth noting that the cash ratio was relatively stable between 2020 and 2022, ranging from 0.70 to 0.58. A cash ratio above 1.0 is generally considered favorable, as it suggests that the company holds enough cash to cover all its short-term liabilities.

While the gradual decline in the cash ratio since 2019 may raise concerns about liquidity management, further analysis of the company's cash flow trends and overall financial health is necessary to understand the underlying factors contributing to these fluctuations.