Motorola Solutions Inc (MSI)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,577,000 | 1,709,000 | 1,363,000 | 1,245,000 | 949,000 |
| Total assets | US$ in thousands | 14,595,000 | 13,336,000 | 12,814,000 | 12,189,000 | 10,876,000 |
| ROA | 10.81% | 12.81% | 10.64% | 10.21% | 8.73% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,577,000K ÷ $14,595,000K
= 10.81%
Over the past five years, Motorola Solutions Inc has shown an improving trend in its return on assets (ROA) performance. The ROA has increased from 8.73% at the end of 2020 to 10.81% at the end of 2024, with the highest value recorded at 12.81% at the end of 2023. This indicates that the company has been more efficient in generating profits relative to its total assets over the years.
A rising ROA signifies that the company is effectively utilizing its assets to generate earnings. It suggests that management has been able to drive profitability by efficiently deploying the resources at its disposal. Investors and stakeholders may view this positively as it indicates the company's ability to generate returns on its investments.
However, fluctuations in ROA should be further investigated to understand the underlying reasons behind the changes. It is important to assess whether the improvement in ROA is sustainable or if it is influenced by external factors. Overall, the increasing trend in ROA for Motorola Solutions Inc reflects a positive performance in terms of asset utilization and profitability.
Peer comparison
Dec 31, 2024