Motorola Solutions Inc (MSI)

Debt-to-equity 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-equity ratio		6.50	12.99	17.85	25.70	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 of Motorola Solutions Inc has shown a fluctuating trend over the past quarters. In Q4 2023, the ratio stands at 8.31, indicating that the company has a moderate level of debt relative to its equity. This suggests a healthy balance between debt and equity financing.

Looking back at the previous quarters, we observe a gradual increase in the debt-to-equity ratio from Q1 2023 to Q4 2022, reaching a high of 51.84 in Q4 2022. This substantial increase may raise concerns as it implies a significant reliance on debt to finance operations and growth, potentially leading to higher financial risk.

The sudden drop in the debt-to-equity ratio in Q1 2023 followed by a more stable trend in the subsequent quarters suggests that the company may have taken steps to reduce its debt levels or increase equity. This proactive approach is favorable as it can enhance the company's financial stability and resilience to economic fluctuations.

Overall, continual monitoring and management of the debt-to-equity ratio are crucial for Motorola Solutions Inc to ensure optimal capital structure and financial health. Balancing the use of debt and equity financing appropriately can help the company sustain growth opportunities while mitigating associated risks.