Motorola Solutions Inc (MSI)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,705,000 | 910,000 | 710,000 | 1,022,000 | 1,325,000 | 822,000 | 717,000 | 878,000 | 1,874,000 | 1,653,000 | 1,921,000 | 1,320,000 | 1,254,000 | 1,007,000 | 1,341,000 | 1,672,000 | 1,001,000 | 1,138,000 | 953,000 | 886,000 |
| Short-term investments | US$ in thousands | 28,000 | — | — | 3,000 | 21,000 | — | — | 2,000 | 69,000 | — | — | — | 19,000 | 17,000 | 23,000 | 21,000 | 25,000 | 22,000 | 42,000 | 18,000 |
| Total current liabilities | US$ in thousands | 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 | 3,439,000 | 3,656,000 | 2,876,000 | 2,979,000 |
| Cash ratio | 0.30 | 0.17 | 0.19 | 0.26 | 0.30 | 0.22 | 0.19 | 0.23 | 0.48 | 0.48 | 0.60 | 0.43 | 0.36 | 0.31 | 0.39 | 0.44 | 0.30 | 0.32 | 0.35 | 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 measures the ability of Motorola Solutions Inc to cover its short-term obligations with its available cash and cash equivalents. Looking at the trend over the past eight quarters, we can observe fluctuations in the cash ratio.
In Q4 2023, the cash ratio stands at 0.54, indicating that the company has $0.54 in cash and cash equivalents for every $1 of its current liabilities. This represents a decrease from the previous quarter, suggesting a potential liquidity challenge as the company may have less cash available to meet its short-term obligations.
Comparing this to Q1 2023, where the cash ratio was 0.61, we see a significant decline in the Q4 2023 cash ratio. This indicates a decrease in the company's ability to cover its short-term liabilities with its available cash resources.
Overall, while the cash ratio has fluctuated over the past quarters, Motorola Solutions Inc should closely monitor its liquidity position to ensure it has sufficient cash reserves to meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023