Motorola Solutions Inc (MSI)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.87	0.98	1.01	1.12	1.16

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,705,000K ÷ ($4,705,000K + $724,000K)
= 0.87

The debt-to-capital ratio of Motorola Solutions Inc has been on a decreasing trend over the past five years, declining from 1.16 in 2019 to 0.89 in 2023. This indicates that the company has been successful in reducing its reliance on debt to finance its operations relative to its total capital. A decreasing trend in the debt-to-capital ratio is generally viewed positively by investors and creditors as it suggests improved financial stability and reduced risk. Despite the fluctuations in this ratio, Motorola Solutions Inc has managed to strengthen its financial position over the years through effective management of debt levels relative to its capital structure.