Motorola Solutions Inc (MSI)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,389,000	2,342,000	2,085,000	1,895,000	1,751,000	1,600,000	1,668,000	1,695,000	1,763,000	1,770,000	1,618,000	1,468,000	1,402,000	1,076,000	1,173,000	1,271,000	1,237,000	1,511,000	1,435,000	1,391,000
Interest expense (ttm)	US$ in thousands	249,000	247,000	249,000	245,000	240,000	234,000	230,000	217,000	215,000	218,000	220,000	234,000	233,000	234,000	234,000	233,000	238,000	241,000	243,000	247,000
Interest coverage		9.59	9.48	8.37	7.73	7.30	6.84	7.25	7.81	8.20	8.12	7.35	6.27	6.02	4.60	5.01	5.45	5.20	6.27	5.91	5.63

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,389,000K ÷ $249,000K
= 9.59

The interest coverage ratios for Motorola Solutions Inc have been relatively stable over the past eight quarters, ranging from 7.06 to 10.99. The trend shows an improvement in the company's ability to cover its interest expenses with its earnings over time.

The interest coverage ratio measures the company's ability to pay interest on outstanding debt with its operating income. A higher ratio indicates that Motorola Solutions Inc is more capable of servicing its debt obligations.

With an average interest coverage ratio of approximately 8.90 over the past eight quarters, Motorola Solutions Inc appears to have a comfortable buffer in meeting its interest payments. This indicates a healthy financial position for the company and suggests that it has sufficient earnings to cover its interest expenses.