Motorola Solutions Inc (MSI)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,268,000 | 2,176,000 | 2,060,000 | 1,943,000 | 2,416,000 | 2,369,000 | 2,112,000 | 1,941,000 | 1,774,000 | 1,624,000 | 1,692,000 | 1,699,000 | 1,767,000 | 1,785,000 | 1,712,000 | 1,617,000 | 1,523,000 | 1,582,000 | 1,636,000 | 1,724,000 |
| Interest expense (ttm) | US$ in thousands | 295,000 | 284,000 | 264,000 | 234,000 | 227,000 | 225,000 | 234,000 | 236,000 | 240,000 | 233,000 | 229,000 | 216,000 | 214,000 | 213,000 | 213,000 | 225,000 | 221,000 | 227,000 | 223,000 | 221,000 |
| Interest coverage | 7.69 | 7.66 | 7.80 | 8.30 | 10.64 | 10.53 | 9.03 | 8.22 | 7.39 | 6.97 | 7.39 | 7.87 | 8.26 | 8.38 | 8.04 | 7.19 | 6.89 | 6.97 | 7.34 | 7.80 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,268,000K ÷ $295,000K
= 7.69
The interest coverage ratio for Motorola Solutions Inc has shown some fluctuation over the past few years. The ratio ranged from around 6.97 to 10.64 during the period from March 31, 2020, to December 31, 2024.
The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations from its operating earnings.
Motorola Solutions Inc's interest coverage ratio has generally been above 7, indicating that the company has been able to comfortably cover its interest expenses with its operating income during this period. There was a slight dip in the ratio towards the end of 2022, but it recovered and improved in the following quarters.
Overall, the company's interest coverage ratio shows a relatively stable financial position with the ability to easily meet its interest payment obligations. Investors and creditors may view this positively as it suggests a lower risk of default on interest payments.
Peer comparison
Dec 31, 2024