Motorola Solutions Inc (MSI)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	2,267,000	2,294,000	1,755,000	1,767,000	1,407,000
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	1,703,000	724,000	116,000	-40,000	-558,000
Return on total capital		133.12%	316.85%	1,512.93%	—	—

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,267,000K ÷ ($—K + $1,703,000K)
= 133.12%

Return on total capital is a key financial metric that indicates how efficiently a company utilizes its total capital to generate profits. Based on the provided data for Motorola Solutions Inc, the return on total capital experienced significant fluctuations over the years:

- As of December 31, 2020 and December 31, 2021, the return on total capital was not available ("—"), suggesting a lack of profitability or potential data unavailability for analysis during these periods.
- The return on total capital sharply increased to 1,512.93% as of December 31, 2022, indicating a substantial improvement in capital efficiency and profitability.
- By December 31, 2023, the return on total capital decreased to 316.85%, which still indicates a strong performance in utilizing capital effectively to generate returns.
- Continuing the trend, by December 31, 2024, the return on total capital further decreased to 133.12%, but it remains at a relatively healthy level.

Overall, the fluctuations in the return on total capital for Motorola Solutions Inc show varying levels of efficiency in utilizing total capital to generate profits over the years, with the company experiencing both significant improvements and slight declines in capital efficiency.