Motorola Solutions Inc (MSI)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,102,000	1,705,000	1,325,000	1,874,000	1,254,000
Short-term investments	US$ in thousands	—	—	—	—	158,000
Total current liabilities	US$ in thousands	5,055,000	5,736,000	4,560,000	4,063,000	3,489,000
Cash ratio		0.42	0.30	0.29	0.46	0.40

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,102,000K + $—K) ÷ $5,055,000K
= 0.42

The cash ratio for Motorola Solutions Inc has shown some fluctuation over the past five years. As of December 31, 2020, the cash ratio was 0.40, indicating that the company had $0.40 in cash and cash equivalents for every $1 of current liabilities. This ratio increased slightly to 0.46 by December 31, 2021, suggesting a stronger liquidity position.

However, in the subsequent years, the cash ratio declined to 0.29 as of December 31, 2022, and then improved slightly to 0.30 by December 31, 2023. The trend reversed in the most recent year, with the cash ratio rising to 0.42 as of December 31, 2024.

Overall, the cash ratio provides insight into Motorola Solutions Inc's ability to meet its short-term obligations using its available cash resources. The fluctuations in the ratio indicate changes in the company's liquidity position and its ability to manage working capital efficiently. It is essential for investors and stakeholders to closely monitor these fluctuations to assess the company's financial health and risk exposure.