Motorola Solutions Inc (MSI)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 50.85% | 50.51% | 48.90% | 48.11% | 47.69% | 47.78% | 49.44% | 50.00% | 50.87% | 50.39% | 50.23% | 50.07% | 49.55% | 49.85% | 50.43% | 51.19% | 51.45% | 50.53% | 49.44% | 48.02% |
| Operating profit margin | 23.47% | 23.33% | 20.98% | 19.83% | 18.73% | 17.87% | 19.37% | 19.93% | 21.00% | 21.07% | 20.46% | 19.36% | 19.01% | 19.21% | 19.74% | 20.90% | 20.69% | 20.05% | 18.58% | 17.58% |
| Pretax margin | 21.89% | 21.75% | 19.45% | 17.97% | 17.04% | 16.07% | 17.45% | 18.31% | 19.49% | 19.54% | 18.16% | 16.78% | 16.05% | 11.40% | 12.53% | 13.47% | 13.07% | 16.89% | 15.96% | 15.33% |
| Net profit margin | 17.49% | 17.67% | 16.07% | 14.96% | 15.37% | 13.82% | 14.59% | 15.70% | 15.68% | 15.81% | 14.99% | 13.55% | 13.03% | 10.57% | 11.25% | 11.87% | 11.37% | 13.94% | 13.76% | 13.41% |
Motorola Solutions Inc's profitability has shown a positive trend over recent quarters, with improvements in key profitability ratios. The gross profit margin has been relatively stable, ranging from 46.41% to 49.81%, indicating effective control over production costs and pricing strategies.
The operating profit margin has shown a consistent increase from 18.29% in Q3 2022 to 23.79% in Q4 2023, reflecting the company's ability to efficiently manage operating expenses. This indicates strong operational performance and effective cost management.
Similarly, the pretax margin has also demonstrated a steady improvement, with an increase from 15.71% in Q3 2022 to 21.51% in Q4 2023. This suggests the company's ability to generate higher profits before accounting for taxes, indicating improved financial performance.
The net profit margin has shown a positive trend as well, ranging from 13.47% to 17.30% over the period under review. This signifies that Motorola Solutions Inc has managed to increase its net income relative to its revenue, highlighting effective management of both operational and financial aspects of the business.
Overall, the consistent improvement in profitability ratios reflects the company's ability to enhance efficiency, control costs, and generate higher profits, which bodes well for its financial health and performance in the future.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.20% | 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% | 14.86% | 14.53% | 13.92% | 13.13% |
| Return on assets (ROA) | 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% | 7.54% | 8.13% | 8.54% | 8.17% | 10.10% | 10.31% | 10.02% |
| Return on total capital | 44.00% | 46.23% | 32.82% | 30.33% | 28.57% | 28.55% | 29.96% | 31.55% | 31.21% | 32.63% | 30.37% | 31.45% | 30.45% | 24.42% | 27.40% | 30.53% | 28.03% | 37.67% | 33.03% | 33.29% |
| Return on equity (ROE) | 236.05% | 470.17% | 450.15% | 587.18% | 1,175.00% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Motorola Solutions Inc's profitability ratios show positive trends over the past eight quarters.
The Operating return on assets (Operating ROA) has been consistently increasing, indicating that the company has been able to generate higher operating profits relative to its total assets. This suggests efficient asset utilization and effective management in generating operating income.
The Return on assets (ROA) has also shown an upward trend, indicating the company's ability to generate profits from its total assets. This demonstrates improved efficiency in utilizing its assets to generate profits.
The Return on total capital has been consistently strong, with an increasing trend over the quarters. This ratio shows the efficiency of the company in generating returns from its total capital employed, including both debt and equity. The increasing trend suggests that the company has been effectively utilizing its capital to generate higher returns.
The Return on equity (ROE) has shown significant variability, with fluctuating levels over the quarters. While the ROE has been incredibly high in some quarters, notably in Q1 2023 and Q4 2022, there is missing data for Q3 2022 and it is essential to note that extremely high ROEs may sometimes be attributed to leverage. This ratio indicates the company’s ability to generate profits from shareholders' equity and showcases the return earned on the shareholders' investment.
Overall, with improving Operating ROA, ROA, and Return on total capital, Motorola Solutions Inc has demonstrated profitability and efficiency in managing its assets and capital to generate returns. However, the variability in ROE calls for a deeper analysis to understand the underlying factors affecting the company's profitability.
See also:
Motorola Solutions Inc Profitability Ratios (Quarterly Data)