Motorola Solutions Inc (MSI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 8.57 | 10.47 | 16.64 | 25.58 | 18.42 | 34.35 | 36.36 | 52.79 | 110.47 | — | — | — | — | — | — | — | — | — | — | — |
Motorola Solutions Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets. The Debt-to-assets ratio has remained at 0.00 from March 31, 2020, to December 31, 2024, suggesting that the company's assets are primarily financed by equity rather than debt.
The Debt-to-capital ratio and Debt-to-equity ratio were not available up to December 31, 2021, but from December 31, 2022, to December 31, 2024, both ratios show a 0.00 value, indicating that the company relies less on debt to finance its operations and growth.
The Financial leverage ratio, which was not available until December 31, 2022, has shown a significant decrease from 110.47 on December 31, 2022, to 8.57 on December 31, 2024. This decline indicates that the company has been reducing its reliance on debt financing over the years, as reflected in a decreasing trend in financial leverage. This demonstrates improved financial stability and lower risk from financial leverage for Motorola Solutions Inc.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio is a measure of a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses for a specific period.
Based on the data provided for Motorola Solutions Inc, the interest coverage ratio fluctuates over the period from March 31, 2020, to December 31, 2024. The ratio ranges from a low of 6.89 on December 31, 2020, to a high of 10.64 on December 31, 2023.
A higher interest coverage ratio indicates that the company is more capable of meeting its interest payment obligations from its operating income. Conversely, a lower ratio suggests a higher financial risk due to potential difficulties in covering interest expenses.
Motorola Solutions Inc generally maintained its interest coverage ratio above 7 during the period in question, reflecting a reasonable ability to cover its interest expenses with its operating earnings. However, some fluctuations in the ratio show variations in the company's financial performance and debt management over time.
It is important for investors and analysts to monitor the interest coverage ratio as a key indicator of a company's financial health and its ability to service its debt obligations.