Motorola Solutions Inc (MSI)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	1,577,000	1,562,000	1,464,000	1,392,000	1,709,000	1,702,000	1,517,000	1,374,000	1,363,000	1,175,000	1,203,000	1,268,000	1,245,000	1,256,000	1,154,000	996,000	949,000	780,000	842,000	914,000
Total stockholders’ equity	US$ in thousands	1,703,000	1,326,000	802,000	521,000	724,000	362,000	337,000	234,000	116,000	-408,000	-443,000	-316,000	-40,000	-263,000	-358,000	-496,000	-558,000	-756,000	-830,000	-948,000
ROE		92.60%	117.80%	182.54%	267.18%	236.05%	470.17%	450.15%	587.18%	1,175.00%	—	—	—	—	—	—	—	—	—	—	—

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,577,000K ÷ $1,703,000K
= 92.60%

The return on equity (ROE) of Motorola Solutions Inc has shown a significant improvement over the past few years, indicating a strong performance in utilizing shareholders' equity to generate profits.

From December 31, 2022, where the ROE stood at an impressive 1,175.00%, the ratio decreased gradually in the following quarters but remained at a very high level. As of December 31, 2024, the ROE was 92.60%, still above industry averages.

The fluctuation in ROE can be attributed to various factors such as changes in net income, total equity, and debt levels. It is essential to monitor this trend closely to ensure that the company is maintaining a balance between profitability and equity utilization. Overall, the ROE trend suggests that Motorola Solutions Inc has been effectively generating returns for its shareholders, although a downward trend should be monitored and understood in the context of the company's overall financial performance.