Motorola Solutions Inc (MSI)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,267,000 | 2,294,000 | 1,755,000 | 1,767,000 | 1,407,000 |
| Interest expense | US$ in thousands | 295,000 | 216,000 | 240,000 | 208,000 | 220,000 |
| Interest coverage | 7.68 | 10.62 | 7.31 | 8.50 | 6.40 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,267,000K ÷ $295,000K
= 7.68
The interest coverage ratio for Motorola Solutions Inc has shown a fluctuating trend over the past five years. In December 2020, the interest coverage ratio was 6.40, indicating that the company's operating income was able to cover its interest expense 6.40 times.
Subsequently, the interest coverage ratio improved to 8.50 in December 2021, reflecting a stronger ability to meet interest obligations. In 2022, the ratio slightly decreased to 7.31 but remained relatively healthy, indicating the company's continued ability to comfortably cover its interest expenses.
By December 2023, the interest coverage ratio further increased to 10.62, reaching its peak over the period. This substantial increase suggests that Motorola Solutions Inc's operating income significantly exceeded its interest expenses, demonstrating financial strength and stability.
However, in December 2024, the interest coverage ratio decreased to 7.68, indicating a slight decline in the company's ability to cover its interest payments compared to the previous year. Overall, Motorola Solutions Inc's interest coverage ratios have remained generally healthy throughout the period, with occasional fluctuations reflecting changes in operating performance and financial leverage.
Peer comparison
Dec 31, 2024