Motorola Solutions Inc (MSI)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 13,336,000 | 12,814,000 | 12,189,000 | 10,876,000 | 10,642,000 |
| Total stockholders’ equity | US$ in thousands | 724,000 | 116,000 | -40,000 | -558,000 | -700,000 |
| Financial leverage ratio | 18.42 | 110.47 | — | — | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,336,000K ÷ $724,000K
= 18.42
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. In the case of Motorola Solutions Inc, the financial leverage ratio has shown significant fluctuations over the past few years.
In 2023, the financial leverage ratio stands at 18.42, indicating a moderate level of leverage compared to the previous year, where the ratio was significantly higher at 110.47. This suggests that in 2023, the company has reduced its reliance on debt to support its business activities.
The absence of data for 2021 and 2020 limits the ability to analyze the trend over a longer period. However, given the substantial decrease in the financial leverage ratio from 2022 to 2023, it appears that Motorola Solutions Inc may be actively managing its debt levels to achieve a more optimal capital structure.
Overall, the recent data points to a more balanced approach to financing operations, potentially signaling a shift towards a more sustainable and stable financial position for Motorola Solutions Inc.
Peer comparison
Dec 31, 2023