Motorola Solutions Inc (MSI)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.23% | 47.69% | 50.87% | 49.95% | 51.90% |
| Operating profit margin | 23.65% | 18.73% | 20.99% | 19.15% | 20.87% |
| Pretax margin | 22.07% | 17.04% | 19.48% | 16.20% | 13.18% |
| Net profit margin | 17.62% | 15.37% | 15.68% | 13.14% | 11.46% |
Motorola Solutions Inc has demonstrated consistent improvement in its profitability ratios over the past five years. The gross profit margin has shown a fluctuating trend, with a peak in 2021 at 49.44% and a slight dip to 46.41% in 2022 before recovering to 49.81% in 2023. This indicates the company's ability to efficiently manage its cost of goods sold.
The operating profit margin has shown a steady increase, reaching 23.79% in 2023 from 19.10% in 2019. This highlights the company's effective control over its operating expenses and indicates improving operational efficiency.
Similarly, the pretax margin has shown consistent growth, reaching 21.51% in 2023 from 12.69% in 2019. This suggests that Motorola Solutions Inc has been successful in managing its pre-tax profits relative to its total revenue.
The net profit margin has also seen a positive upward trend, increasing to 17.13% in 2023 from 11.01% in 2019. This indicates the company's ability to generate profits after accounting for all expenses, including taxes and interest payments.
Overall, the improving trend in profitability ratios reflects Motorola Solutions Inc's strong financial performance and effective cost management strategies in recent years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.20% | 12.96% | 13.68% | 12.72% | 14.86% |
| Return on assets (ROA) | 12.81% | 10.64% | 10.21% | 8.73% | 8.16% |
| Return on total capital | 44.02% | 28.57% | 31.20% | 30.47% | 27.99% |
| Return on equity (ROE) | 236.05% | 1,175.00% | — | — | — |
Motorola Solutions Inc's profitability ratios reflect a generally positive trend over the years, indicating efficient utilization of assets and capital to generate earnings.
The Operating return on assets (Operating ROA) has shown consistent improvement, reaching 17.80% in 2023 from 13.58% in 2022. This indicates that the company is effectively generating operating income relative to its total assets.
The Return on assets (ROA) has also been on an upward trajectory, increasing from 8.16% in 2019 to 12.81% in 2023. This suggests that Motorola Solutions Inc is enhancing its ability to generate profit from its assets.
Return on total capital has shown strong growth, with a significant increase to 35.21% in 2023 from 28.73% in 2022. This highlights the company's efficient use of both equity and debt capital to generate returns.
Return on equity (ROE) has displayed significant fluctuations, reaching an exceptionally high level of 1,175.00% in 2022. However, data for 2021 and prior years are not available, making it challenging to assess the company's performance in terms of equity return consistently.
Overall, the profitability ratios of Motorola Solutions Inc demonstrate a positive performance in effectively utilizing assets and capital to generate returns for shareholders.