Motorola Solutions Inc (MSI)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 50.27% | 49.79% | 49.44% | 49.41% | 49.48% | 49.53% | 47.89% | 47.11% | 46.41% | 46.54% | 48.17% | 48.70% | 49.44% | 49.27% | 49.04% | 48.87% | 48.66% | 48.98% | 49.46% | 50.03% |
| Operating profit margin | 25.07% | 25.10% | 24.97% | 24.19% | 23.37% | 22.84% | 20.52% | 19.39% | 18.23% | 17.41% | 18.88% | 19.41% | 20.41% | 20.61% | 19.97% | 18.89% | 18.67% | 18.88% | 19.36% | 20.43% |
| Pretax margin | 18.24% | 17.76% | 17.17% | 16.63% | 21.49% | 21.35% | 19.07% | 17.61% | 16.63% | 15.70% | 17.05% | 17.88% | 18.99% | 19.15% | 17.78% | 16.44% | 15.82% | 11.23% | 12.31% | 13.19% |
| Net profit margin | 14.58% | 14.66% | 14.05% | 13.65% | 17.13% | 17.30% | 15.71% | 14.63% | 14.96% | 13.47% | 14.22% | 15.30% | 15.24% | 15.46% | 14.64% | 13.22% | 12.80% | 10.38% | 11.02% | 11.59% |
Based on the provided data for Motorola Solutions Inc, here is an analysis of the profitability ratios:
1. Gross Profit Margin:
- The gross profit margin has shown fluctuations over the analyzed periods, ranging from a low of 46.41% on December 31, 2022, to a high of 50.27% on December 31, 2024.
- Overall, the trend indicates a slight decline in the gross profit margin from the end of 2022 to 2024, although it has remained relatively stable around the 49% mark.
2. Operating Profit Margin:
- The operating profit margin has demonstrated a consistent improving trend, increasing from 18.67% on December 31, 2020, to 25.07% on December 31, 2024.
- This indicates that the company has been able to efficiently control its operating expenses and generate higher operating profits over time.
3. Pretax Margin:
- The pretax margin has experienced fluctuations but generally shows an increasing trend from 11.23% on September 30, 2020, to 18.24% on December 31, 2024.
- The company has been able to enhance its ability to generate profits before taxes, indicating effective management of both revenues and expenses.
4. Net Profit Margin:
- The net profit margin has shown variability but also demonstrates an increasing trend from 10.38% on September 30, 2020, to 14.58% on December 31, 2024.
- This trend suggests that the company has been successful in improving its bottom-line profitability by efficiently managing its costs and generating higher net income relative to revenues.
Overall, the analysis of profitability ratios for Motorola Solutions Inc suggests that the company has shown improvements in its operational efficiency and profitability over the analyzed periods. The increasing trends in operating, pretax, and net profit margins indicate effective cost management, revenue generation, and overall financial performance. However, fluctuations in gross profit margin highlight the need for attention to cost control and pricing strategies in order to maintain overall profitability levels.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.58% | 19.25% | 19.50% | 18.51% | 17.49% | 18.07% | 16.17% | 14.74% | 12.96% | 13.07% | 13.68% | 13.81% | 13.68% | 14.66% | 14.15% | 13.65% | 12.73% | 13.70% | 14.27% | 15.03% |
| Return on assets (ROA) | 10.81% | 11.25% | 10.97% | 10.45% | 12.81% | 13.69% | 12.38% | 11.12% | 10.64% | 10.11% | 10.31% | 10.89% | 10.21% | 11.00% | 10.37% | 9.56% | 8.73% | 7.53% | 8.12% | 8.53% |
| Return on total capital | 133.18% | 164.10% | 256.86% | 372.94% | 333.70% | 654.42% | 626.71% | 829.49% | 1,529.31% | — | — | — | — | — | — | — | — | — | — | — |
| Return on equity (ROE) | 92.60% | 117.80% | 182.54% | 267.18% | 236.05% | 470.17% | 450.15% | 587.18% | 1,175.00% | — | — | — | — | — | — | — | — | — | — | — |
Motorola Solutions Inc's profitability ratios show a positive trend over the analyzed period.
- Operating return on assets (Operating ROA) improved consistently from 15.03% in March 31, 2020, to 18.58% in December 31, 2024, indicating effective management in generating operating profits relative to total assets.
- Return on assets (ROA) also showed a rising trend, reaching a peak of 13.69% in September 30, 2023, before slightly declining to 10.81% by December 31, 2024. This indicates the company's ability to generate profits from its total assets.
- Return on total capital and Return on equity (ROE) were not available for the earlier periods but showed significant improvements in the later periods. Return on total capital increased from 1,529.31% in December 31, 2022, to 133.18% by December 31, 2024, implying efficient use of total capital to generate returns. Similarly, ROE rose from 1,175.00% in December 31, 2022, to 92.60% by December 31, 2024, showcasing the company's ability to generate profits from shareholders' equity.
Overall, these profitability ratios reflect a positive performance trend for Motorola Solutions Inc, indicating effective asset utilization and profit generation capabilities.
See also:
Motorola Solutions Inc Profitability Ratios (Quarterly Data)