Motorola Solutions Inc (MSI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.35 | 0.38 | 0.49 | 0.49 | 0.47 | 0.52 | 0.51 | 0.49 | 0.47 | 0.50 | 0.51 | 0.50 | 0.47 | 0.50 | 0.49 | 0.48 | 0.48 | 0.49 | 0.53 | 0.53 |
| Debt-to-capital ratio | 0.87 | 0.93 | 0.95 | 0.96 | 0.98 | 1.07 | 1.08 | 1.06 | 1.01 | 1.05 | 1.07 | 1.11 | 1.12 | 1.17 | 1.19 | 1.23 | 1.16 | 1.27 | 1.22 | 1.27 |
| Debt-to-equity ratio | 6.50 | 12.99 | 17.85 | 25.70 | 51.84 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 18.42 | 34.35 | 36.36 | 52.79 | 110.47 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The solvency ratios of Motorola Solutions Inc indicate the company's ability to meet its long-term financial obligations and the extent of leverage utilized in its capital structure.
The debt-to-assets ratio has been relatively stable over the quarters, ranging from 0.45 to 0.52, suggesting that around 45% to 52% of the company's assets are financed by debt. This indicates that Motorola Solutions relies moderately on debt financing to fund its operations and investments.
The debt-to-capital ratio has also shown consistency, hovering between 0.89 and 1.08. This ratio indicates that debt accounts for approximately 89% to 108% of the company's capital structure. While this ratio has fluctuated slightly, it generally suggests a significant reliance on debt to finance its operations and investments.
The debt-to-equity ratio has ranged widely from 8.31 to 51.84 during the periods presented. This variability indicates significant changes in the proportion of debt and equity in the company's capital structure. The highest ratio in Q1 2023 indicates elevated financial risk due to a heavy reliance on debt relative to equity.
The financial leverage ratio has fluctuated substantially, ranging from 18.42 to 110.47. This ratio reflects the extent to which the company is using debt to support its operations. A higher financial leverage ratio indicates a higher degree of financial risk and leverage. The significant fluctuations in this ratio suggest varying levels of leverage utilized by the company during the periods analyzed.
Overall, Motorola Solutions Inc's solvency ratios demonstrate a relatively stable debt-to-assets and debt-to-capital structure, but significant fluctuations in the debt-to-equity and financial leverage ratios indicate varying levels of financial risk and leverage employed by the company. Monitoring these ratios over time can provide insights into the company's financial health and risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Motorola Solutions Inc has exhibited a positive trend over the past eight quarters, indicating the company's ability to comfortably cover its interest expenses with its operating profits. The ratio has consistently stayed above 1, reflecting a strong capability to meet its interest obligations. Furthermore, the upward trend in the interest coverage ratio suggests an improving financial health and stability of the company. In the most recent quarter, Q4 2023, the interest coverage ratio stood at 10.99, demonstrating a robust ability to service its debt obligations through its operating earnings. Overall, the consistent high levels of interest coverage indicate a favorable financial position for Motorola Solutions Inc regarding its ability to manage interest payments.