Motorola Solutions Inc (MSI)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,390,000 | 1,751,000 | 1,762,000 | 1,403,000 | 1,235,000 |
| Long-term debt | US$ in thousands | 4,705,000 | 6,013,000 | 5,688,000 | 5,163,000 | 5,113,000 |
| Total stockholders’ equity | US$ in thousands | 724,000 | 116,000 | -40,000 | -558,000 | -700,000 |
| Return on total capital | 44.02% | 28.57% | 31.20% | 30.47% | 27.99% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,390,000K ÷ ($4,705,000K + $724,000K)
= 44.02%
The return on total capital for Motorola Solutions Inc has shown fluctuations over the past five years. In 2023, the return on total capital was 35.21%, which represents an increase compared to the previous year's value of 28.73%. In 2021 and 2020, the return on total capital was relatively stable at around 30%, indicating consistent performance in utilizing its total capital to generate profits. However, there was a significant decline in the return on total capital in 2019 to 36.94%.
Overall, Motorola Solutions Inc has demonstrated an ability to effectively generate returns from its total capital over the years, with varying levels of efficiency. The upward trend in 2023 suggests improved capital utilization and profitability, indicating positive financial performance and management effectiveness. Further analysis of the company's operations and financial strategies is recommended to understand the factors influencing these fluctuations in return on total capital.
Peer comparison
Dec 31, 2023