Motorola Solutions Inc (MSI)
Debt-to-equity 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-equity ratio | 6.50 | 51.84 | — | — | — |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,705,000K ÷ $724,000K
= 6.50
The debt-to-equity ratio for Motorola Solutions Inc has varied significantly over the years, as shown in the table below:
- Dec 31, 2023: 8.31
- Dec 31, 2022: 51.84
- Dec 31, 2021: Not available
- Dec 31, 2020: Not available
- Dec 31, 2019: Not available
The debt-to-equity ratio indicates the proportion of a company's financing that comes from debt relative to equity. A higher ratio suggests higher financial risk as the company has more debt compared to equity.
In this case, the drastic reduction in the debt-to-equity ratio from 51.84 in 2022 to 8.31 in 2023 indicates a significant decrease in the proportion of debt in the company's capital structure. This may signify a decrease in financial risk and potentially improved financial stability for Motorola Solutions Inc. However, it is essential to consider the reasons behind this change, such as debt repayment, equity issuance, or changes in financial management strategies, to fully gauge the company's financial health.
Peer comparison
Dec 31, 2023