Motorola Solutions Inc (MSI)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,389,000	2,342,000	2,085,000	1,895,000	1,751,000	1,600,000	1,668,000	1,695,000	1,763,000	1,770,000	1,618,000	1,468,000	1,402,000	1,076,000	1,173,000	1,271,000	1,237,000	1,511,000	1,435,000	1,391,000
Long-term debt	US$ in thousands	4,705,000	4,704,000	6,015,000	6,014,000	6,013,000	6,012,000	6,011,000	5,689,000	5,688,000	5,687,000	5,686,000	5,164,000	5,163,000	5,162,000	5,111,000	5,111,000	5,113,000	5,112,000	5,315,000	5,287,000
Total stockholders’ equity	US$ in thousands	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	-700,000	-1,101,000	-970,000	-1,108,000
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%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,389,000K ÷ ($4,705,000K + $724,000K)
= 44.00%

Motorola Solutions Inc has shown a consistently strong performance in terms of return on total capital over the past eight quarters. The return on total capital has been above 28% in all quarters, indicating effective utilization of both equity and debt in generating profits. The trend has been positive, with a gradual increase from 28.46% in Q3 2022 to 36.49% in Q3 2023, although there was a slight dip in Q1 2023.

This indicates that Motorola Solutions Inc has been able to generate a high return relative to the total capital employed in the business operations. The company's ability to generate such high returns on its total capital suggests efficient allocation of resources and effective management of both equity and debt financing. Overall, the company's strong performance in terms of return on total capital demonstrates its effective operational and financial management.