Motorola Solutions Inc (MSI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 50.96% | 49.81% | 46.41% | 49.44% | 48.66% |
| Operating profit margin | 24.85% | 22.99% | 18.23% | 20.40% | 18.65% |
| Pretax margin | 18.23% | 21.51% | 16.63% | 18.99% | 15.83% |
| Net profit margin | 14.58% | 17.13% | 14.96% | 15.24% | 12.80% |
Motorola Solutions Inc has shown a generally positive trend in profitability ratios over the years based on the data provided.
- Gross profit margin has been improving steadily from 48.66% in 2020 to 50.96% in 2024, indicating the company's ability to efficiently manage its production costs and generate a higher percentage of revenue as gross profit.
- Operating profit margin has also seen a consistent increase from 18.65% in 2020 to 24.85% in 2024, reflecting the company's effectiveness in controlling its operating expenses and generating profits from its core business operations.
- Pretax margin demonstrates an upward trajectory, rising from 15.83% in 2020 to 21.51% in 2024, showcasing the company's ability to generate profits before accounting for taxes.
- Net profit margin, although showing a slight decline in 2024 compared to 2023, has been generally positive, indicating that Motorola Solutions Inc has been effective in managing its overall expenses to generate profit for its shareholders.
Overall, the profitability ratios suggest that Motorola Solutions Inc has been successful in improving its operational efficiency and profitability over the years, which is a positive sign for investors and stakeholders.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.42% | 17.20% | 12.96% | 13.68% | 12.72% |
| Return on assets (ROA) | 10.81% | 12.81% | 10.64% | 10.21% | 8.73% |
| Return on total capital | 133.12% | 316.85% | 1,512.93% | — | — |
| Return on equity (ROE) | 92.60% | 236.05% | 1,175.00% | — | — |
Motorola Solutions Inc's profitability ratios show a positive trend over the years.
1. Operating Return on Assets (Operating ROA): This ratio measures the operating income generated per dollar of assets. Motorola's Operating ROA has been consistently increasing from 12.72% in 2020 to 18.42% in 2024. This indicates that the company has been able to generate higher operating income relative to its asset base over time.
2. Return on Assets (ROA): ROA indicates the overall profitability of the company. Motorola's ROA has also shown improvement, rising from 8.73% in 2020 to 12.81% in 2023 before slightly decreasing to 10.81% in 2024. This suggests that the company has been more efficient in utilizing its assets to generate profits.
3. Return on Total Capital: This ratio reflects the return earned on the total capital invested in the company, including both equity and debt. Motorola's Return on Total Capital was not available for 2020 and 2021, but in 2022 it significantly increased to 1,512.93%, indicating a substantial return on the total invested capital. This ratio then decreased to 316.85% in 2023 and further down to 133.12% in 2024.
4. Return on Equity (ROE): ROE measures the return generated on the shareholders' equity. Although ROE was not available for 2020 and 2021, it showed a remarkable increase in 2022 to 1,175.00%, indicating high returns for equity investors. The ratio then decreased to 236.05% in 2023 and further to 92.60% in 2024.
Overall, the increasing trend in Operating ROA and ROA indicate improving operational efficiency and profitability for Motorola Solutions Inc. However, the fluctuations in Return on Total Capital and ROE may suggest changes in the capital structure and shareholder returns that would require further analysis to understand the company's financial performance comprehensively.