Motorola Solutions Inc (MSI)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,725,000 | 5,255,000 | 5,412,000 | 4,327,000 | 4,178,000 |
| Total current liabilities | US$ in thousands | 5,736,000 | 4,560,000 | 4,063,000 | 3,489,000 | 3,439,000 |
| Current ratio | 1.00 | 1.15 | 1.33 | 1.24 | 1.21 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,725,000K ÷ $5,736,000K
= 1.00
The current ratio of Motorola Solutions Inc has shown a declining trend over the past five years, decreasing from 1.21 in 2019 to 1.00 in 2023. This indicates that the company's ability to meet its short-term liabilities with its current assets has weakened over time. A current ratio of 1.00 means that the company has just enough current assets to cover its current liabilities, leaving little room for unexpected costs or fluctuations in cash flows. Investors and creditors may view this downward trend as a potential red flag, as it suggests a potential liquidity risk for the company. Management may need to closely monitor and manage its working capital to ensure sufficient liquidity to meet its short-term obligations.
Peer comparison
Dec 31, 2023