Motorola Solutions Inc (MSI)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.87	0.93	0.95	0.96	0.98	1.07	1.08	1.06	1.01	1.05	1.07	1.11	1.12	1.17	1.19	1.23	1.16	1.27	1.22	1.27

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 fluctuating over the past eight quarters. The ratio indicates the proportion of the company's capital structure that is financed by debt. A higher debt-to-capital ratio suggests that a larger portion of the company's operations are funded by debt, which can increase financial risk.

From Q1 2022 to Q4 2023, the debt-to-capital ratio has shown a general increasing trend, starting at 1.06 and reaching 0.89. This trend indicates a reduction in debt relative to total capital over this period. However, fluctuations were observed in between, such as in Q3 and Q4 of 2022 where the ratio increased significantly from 1.06 to 1.07 and 1.08, respectively.

Despite the recent decrease in the debt-to-capital ratio, Motorola Solutions Inc maintains a relatively high ratio, indicating a significant reliance on debt financing. Investors and stakeholders may monitor this trend closely to assess the company's ability to manage its debt levels and sustain its operations effectively.