Motorola Solutions Inc (MSI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.00 | 0.95 | 1.23 | 1.22 | 1.15 | 1.25 | 1.16 | 1.10 | 1.33 | 1.38 | 1.46 | 1.27 | 1.24 | 1.20 | 1.17 | 1.16 | 1.21 | 1.14 | 1.33 | 1.25 |
| Quick ratio | 0.60 | 0.49 | 0.59 | 0.26 | 0.63 | 0.22 | 0.19 | 0.23 | 0.82 | 0.48 | 0.60 | 0.43 | 0.36 | 0.31 | 0.39 | 0.44 | 0.30 | 0.32 | 0.35 | 0.30 |
| 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 |
The current ratio of Motorola Solutions Inc has been fluctuating over the past eight quarters, ranging from a low of 0.95 to a high of 1.23. The current ratio indicates the company's ability to cover its short-term obligations with its current assets. A ratio of 1.00 means that the company's current assets equal its current liabilities, suggesting a relatively balanced liquidity position.
The quick ratio, which excludes inventory from current assets, paints a slightly weaker picture of liquidity for Motorola Solutions Inc. This ratio has also been fluctuating, with a range of 0.77 to 0.96 over the same period. A quick ratio below 1.00 may indicate that the company may have difficulty meeting its short-term obligations without relying on inventory turnover.
Lastly, the cash ratio, which is the most conservative liquidity ratio, shows the company's ability to cover its current liabilities with only its cash and cash equivalents. The cash ratio for Motorola Solutions Inc has ranged from 0.45 to 0.61, suggesting that the company may have some difficulty meeting its short-term obligations purely with cash on hand.
Overall, while the current ratio indicates a relatively stable liquidity position for Motorola Solutions Inc, the quick ratio and cash ratio imply that the company may face some challenges in meeting its short-term obligations without relying on inventory or other current assets. It is essential for the company to closely monitor and manage its liquidity position to ensure financial stability and flexibility in the face of uncertainties.
See also:
Motorola Solutions Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 61.25 | 76.93 | 78.17 | 21.00 | 62.63 | 15.51 | 9.12 | 7.71 | 60.63 | -1.03 | 0.79 | 3.14 | -7.11 | -3.18 | -3.27 | -5.83 | -11.23 | -6.81 | -9.23 | -11.20 |
The cash conversion cycle of Motorola Solutions Inc has shown varying trends over the past eight quarters. The cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash from sales.
In Q4 2023, the cash conversion cycle improved significantly to 49.88 days compared to the previous quarter. This signals that the company was able to manage its inventory and receivables more efficiently, resulting in quicker turnover of cash.
However, in Q3 and Q2 2023, the cash conversion cycle was relatively higher at 70.61 days and 72.28 days, respectively, indicating a longer time for the company to convert its investments into cash. This may suggest delays in collecting receivables or slower inventory turnover during these periods.
Q1 2023 also saw a decrease in the cash conversion cycle to 68.75 days compared to the previous quarter, showing some improvement in the company's cash management.
Looking back at Q4 2022, the cash conversion cycle was 51.33 days, which was relatively better than Q3 and Q2 2022, suggesting better management of cash flow during that period.
Q3 and Q2 2022 had higher cash conversion cycle days at 65.84 days and 55.24 days, respectively, indicating potential inefficiencies in managing cash flow and working capital during those quarters.
Q1 2022 showed a decrease in the cash conversion cycle to 47.16 days compared to the previous quarter, indicating improved efficiency in managing cash and working capital.
Overall, the trend in the cash conversion cycle of Motorola Solutions Inc has shown fluctuations over the past eight quarters, with some quarters demonstrating improvement in cash management efficiency while others showing potential areas for enhancement in working capital management.