Motorola Solutions Inc (MSI)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	14,595,000	13,336,000	12,814,000	12,189,000	10,876,000
Total stockholders’ equity	US$ in thousands	1,703,000	724,000	116,000	-40,000	-558,000
Financial leverage ratio		8.57	18.42	110.47	—	—

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,595,000K ÷ $1,703,000K
= 8.57

The financial leverage ratio is a key metric used to assess a company's level of debt relative to its equity. From the data provided for Motorola Solutions Inc, the financial leverage ratio was not available for the fiscal years ending on December 31, 2020 and December 31, 2021.

However, there was a significant increase in the financial leverage ratio from 2022 to 2023, where it jumped from 110.47 to 18.42. This implies that the company had a higher level of debt relative to its equity in 2022 and managed to reduce its leverage significantly by 2023.

Furthermore, there was a continued decrease in the financial leverage ratio over the subsequent years, reaching 8.57 by the fiscal year ending on December 31, 2024. This downward trend indicates that Motorola Solutions Inc has been actively managing its debt levels and improving its financial position by decreasing its reliance on debt financing in relation to equity.

Overall, the data suggests that Motorola Solutions Inc has made strategic efforts to reduce its financial leverage ratio over the years, which is a positive signal to investors and stakeholders regarding the company's financial health and risk management.