Motorola Solutions Inc (MSI)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,688,000 | 2,294,000 | 1,661,000 | 1,667,000 | 1,383,000 |
| Total assets | US$ in thousands | 14,595,000 | 13,336,000 | 12,814,000 | 12,189,000 | 10,876,000 |
| Operating ROA | 18.42% | 17.20% | 12.96% | 13.68% | 12.72% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,688,000K ÷ $14,595,000K
= 18.42%
The operating return on assets (operating ROA) for Motorola Solutions Inc has shown a positive trend over the years. The operating ROA was 12.72% as of December 31, 2020, and it increased steadily to 13.68% by December 31, 2021. However, there was a slight dip to 12.96% by the end of December 31, 2022.
The most significant improvement in the operating ROA occurred by the end of December 31, 2023, where it surged to 17.20%, indicating a strong performance in utilizing its assets to generate operating income. This positive momentum continued into December 31, 2024, with an even higher operating ROA of 18.42%.
Overall, the increasing trend in operating ROA reflects Motorola Solutions Inc's effectiveness in generating profits from its operational assets. This trend suggests efficient asset utilization and operational management, which is crucial for sustained financial performance and value creation for the company and its shareholders.
Peer comparison
Dec 31, 2024