Motorola Solutions Inc (MSI)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 1,723,000 | 1,531,000 | 1,406,000 | 1,409,000 | 1,431,000 |
| Total current liabilities | US$ in thousands | 5,736,000 | 4,560,000 | 4,063,000 | 3,489,000 | 3,439,000 |
| Quick ratio | 0.60 | 0.63 | 0.82 | 0.77 | 0.71 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,705,000K
+ $28,000K
+ $1,723,000K)
÷ $5,736,000K
= 0.60
The quick ratio of Motorola Solutions Inc has shown a declining trend over the past five years. The ratio decreased from 1.08 in 2019 to 0.85 in 2023, indicating a potential weakening liquidity position. A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations with its most liquid assets.
Although the quick ratio fluctuated between 0.85 and 1.14 during the period, it generally remained below the ideal value of 1.0, indicating that Motorola Solutions Inc may have limited ability to cover its current liabilities with its quick assets without relying on inventory.
Investors and analysts should closely monitor the company's liquidity position and assess the factors contributing to the declining trend in the quick ratio to ensure that Motorola Solutions Inc can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023