Analysis of Debt
Total Debt (Carrying Amount)
Motorola Solutions Inc., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Current Portion of Long-Term Debt
- The current portion of long-term debt showed a downward trend from 16 million USD at the end of 2019 to a minimal 1 million USD by the end of 2022. However, there was a dramatic increase in this figure by the end of 2023, reaching 1,313 million USD. This significant jump suggests a notable reclassification or repayment activity, possibly indicating that a large portion of long-term debt has become due within one year as of 2023.
- Long-Term Debt, Excluding Current Portion
- Excluding the current portion, the long-term debt experienced moderate fluctuations over the observed period. Starting at 5,113 million USD at the end of 2019, the debt marginally increased through 2020 and 2021, peaking at 6,013 million USD at the end of 2022. By the end of 2023, this amount decreased to 4,705 million USD, marking a considerable reduction compared to the previous year.
- Total Long-Term Debt (Carrying Amount)
- The total long-term debt parallelly reflects the trends in its components. The total debt rose gradually from 5,129 million USD in 2019 to 6,014 million USD in 2022. At the end of 2023, the total long-term debt slightly increased to 6,018 million USD compared to 2022. Given the significant rise in the current portion of long-term debt in 2023, this indicates that while the overall long-term debt remained relatively stable, a larger share shifted to the current liability category.
- Overall Observations
- The aggregated data reveals a consistent overall increase in long-term debt through 2022, followed by a structural shift in 2023 where the current portion significantly increased and the non-current portion decreased. This reclassification may reflect debt maturities approaching within one year or strategic refinancing decisions. The stability in total carrying amount from 2022 to 2023 despite the internal shifts suggests a steady debt position in terms of total obligations, but with changing short-term liquidity and repayment profiles.
Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Total long-term debt (fair value) | 6,400) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.06 |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on long-term debt: 3.94%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.00% | 313) | 13) | |
| 2.45% | 1,000) | 25) | |
| 6.50% | 70) | 5) | |
| 7.50% | 252) | 19) | |
| 4.60% | 695) | 32) | |
| 6.50% | 25) | 2) | |
| 4.60% | 802) | 37) | |
| 2.30% | 894) | 21) | |
| 2.75% | 845) | 23) | |
| 5.60% | 595) | 33) | |
| 6.63% | 38) | 3) | |
| 5.50% | 397) | 22) | |
| 5.22% | 93) | 5) | |
| Total | 6,019) | 237) | |
| 3.94% | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × 237 ÷ 6,019 = 3.94%