Motorola Solutions Inc (MSI)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | — | — |
| Financial leverage ratio | 8.57 | 18.42 | 110.47 | — | — |
Motorola Solutions Inc's solvency ratios paint a picture of a strong financial position in terms of its ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: The company has consistently maintained a debt-to-assets ratio of 0.00 across the years 2020 to 2024. This indicates that the company's total debt is negligible compared to its total assets, reflecting a low financial risk and strong asset coverage.
2. Debt-to-capital ratio: While data for 2020 and 2021 is unavailable, the debt-to-capital ratio for 2022, 2023, and 2024 stands at 0.00. A debt-to-capital ratio of 0.00 implies that the company has zero debt funding its capital, showcasing a capital structure primarily reliant on equity. This suggests a conservative approach to financing and lower financial risk.
3. Debt-to-equity ratio: Similar to the debt-to-capital ratio, the debt-to-equity ratio for 2022 to 2024 is 0.00, indicating that the company's debt is minimal compared to its equity. A debt-to-equity ratio of 0.00 signifies that the company is mainly financed through equity, offering a more stable financial base and less reliance on borrowed funds.
4. Financial leverage ratio: The financial leverage ratio, which wasn't available for 2020 and 2021, was 110.47 in 2022, significantly reducing to 18.42 in 2023, and further declining to 8.57 in 2024. The decreasing trend suggests that the company has been reducing its reliance on debt to finance its operations and investments, leading to a more sustainable financial structure with lower leverage.
In summary, Motorola Solutions Inc's solvency ratios indicate a solid financial position with minimal debt obligations, a capital structure predominantly supported by equity, and a decreasing reliance on debt over the years. These metrics reflect a healthy level of solvency and financial stability for the company.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.68 | 10.62 | 7.31 | 8.50 | 6.40 |
The interest coverage ratio for Motorola Solutions Inc has shown a moderate improvement over the past five years, reflecting the company's ability to meet its interest obligations. In December 2020, the interest coverage stood at 6.40, indicating that the company generated 6.40 times the amount of operating income to cover its interest expenses.
By December 2021, the interest coverage ratio increased to 8.50, suggesting a stronger ability to service its interest payments as the company generated 8.50 times more income than required to cover its interest expenses. However, by December 2022, the ratio slightly decreased to 7.31, potentially signaling a minor decline in the company's ability to cover its interest costs.
Subsequently, by December 2023, the interest coverage ratio improved notably to 10.62, indicating a robust capacity to cover interest payments with earnings. Finally, by December 2024, the ratio settled at 7.68, demonstrating a stable financial position in terms of meeting interest obligations.
Overall, the trend in Motorola Solutions Inc's interest coverage ratio from 2020 to 2024 reflects a generally satisfactory performance, with occasional fluctuations, showcasing the company's ability to manage its interest expenses efficiently and maintain its financial health.