Motorola Solutions Inc (MSI)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,294,000 | 1,661,000 | 1,667,000 | 1,383,000 | 1,581,000 |
| Total assets | US$ in thousands | 13,336,000 | 12,814,000 | 12,189,000 | 10,876,000 | 10,642,000 |
| Operating ROA | 17.20% | 12.96% | 13.68% | 12.72% | 14.86% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,294,000K ÷ $13,336,000K
= 17.20%
The operating return on assets (operating ROA) for Motorola Solutions Inc has fluctuated over the past five years, as seen in the data provided. In 2023, the operating ROA was at 17.80%, showing an increase from the previous year's 13.58%. This implies that the company generated 17.80 cents of operating income for every dollar of assets it holds. The improvement in the operating ROA indicates enhanced efficiency in asset utilization and/or increased profitability from operations in the most recent year.
Looking at the trend over the five-year period, Motorola Solutions Inc's operating ROA decreased slightly in 2020 compared to the previous year but then increased slightly in 2021. The decline in 2020 might suggest challenges in generating sufficient operating income relative to the assets employed, possibly due to economic conditions or operational issues. However, the subsequent recovery in 2021 and the further increase in 2023 point towards efforts to enhance operational performance and asset utilization.
In 2019, the operating ROA was at 15.34%, higher than in 2022 and 2020. This indicates that in 2019, Motorola Solutions Inc was more efficient in generating operating income relative to its assets compared to the following years. It's important for the company to consistently monitor and improve its operating ROA to ensure sustainable profitability and efficient asset management.
Overall, the fluctuating trend in Motorola Solutions Inc's operating ROA over the past five years suggests varying levels of operational efficiency and profitability. Further analysis of the company's operational strategies and asset utilization would be beneficial to understand the factors influencing these fluctuations and to identify opportunities for improvement.
Peer comparison
Dec 31, 2023