Stock Analysis on Net
AI Tokens
Stock Analysis on Net

Motorola Solutions Inc. (NYSE:MSI)

This company has been moved to the archive! The financial data has not been updated since August 1, 2024.

Common-Size Income Statement

Motorola Solutions Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net sales from products 58.27 58.91 56.37 55.13 60.17
Net sales from services 41.73 41.09 43.63 44.87 39.83
Net sales 100.00% 100.00% 100.00% 100.00% 100.00%
Costs of products sales -25.97 -28.48 -25.75 -25.25 -25.98
Costs of services sales -24.22 -25.11 -24.81 -26.09 -24.18
Costs of sales -50.19% -53.59% -50.56% -51.34% -50.16%
Gross margin 49.81% 46.41% 49.44% 48.66% 49.84%
Selling, general and administrative expenses -15.64 -15.91 -16.56 -17.44 -17.79
Research and development expenditures -8.60 -8.55 -8.98 -9.25 -8.71
Intangibles amortization -1.77 -2.82 -2.89 -2.90 -2.64
Reorganization of businesses -0.22 -0.20 -0.29 -0.77 -0.51
Legal Settlements -0.04 -0.25 -0.04 -0.12 -0.04
Fixed asset impairments -0.03 -0.13 0.00 -0.07 0.00
Gain on sale of property, plant, and equipment 0.00 0.00 0.00 0.67 0.00
Environmental reserve expense -0.15 0.00 0.00 0.00 0.00
Exit of video manufacturing operations -0.24 0.00 0.00 0.00 0.00
Operating lease asset impairments -0.06 -0.26 -0.12 0.00 -0.06
Acquisition-related transaction fees -0.07 -0.25 -0.18 -0.12 -0.04
Gain on Hytera legal settlement 0.00 0.16 0.00 0.00 0.00
Other 0.01 0.03 0.02 -0.01 -0.01
Other charges -2.58% -3.72% -3.50% -3.32% -3.30%
Operating earnings 22.99% 18.23% 20.40% 18.65% 20.05%
Interest expense -2.50 -2.63 -2.63 -3.14 -3.00
Interest income 0.33 0.15 0.09 0.18 0.22
Interest expense, net -2.16% -2.48% -2.55% -2.97% -2.79%
Gains (losses) on sales of investments and businesses, net 0.00 0.03 0.01 -0.03 0.06
Net periodic pension and postretirement benefit 0.99 1.35 1.51 1.09 0.99
Loss from the extinguishment of long-term debt 0.00 -0.07 -0.22 -0.76 -0.63
Gains from the extinguishment of 2.00% senior convertible notes 0.00 0.00 0.00 0.00 0.05
Investment impairments -0.16 -0.01 0.00 -0.05 -0.23
Foreign currency gain (loss) -0.53 0.41 0.21 -0.59 -0.28
Gain (loss) on derivative instruments 0.20 -0.67 -0.37 0.34 -0.10
Gains (loss) on equity method investments 0.00 -0.03 0.06 0.04 0.04
Fair value adjustments to equity investments 0.13 -0.33 -0.10 0.08 -0.04
Gain on TETRA Ireland equity method investment 0.00 0.23 0.00 0.00 0.00
U.S. pension settlement 0.00 0.00 0.00 0.00 -4.55
Other 0.05 -0.03 0.04 0.03 0.13
Other, net 0.68% 0.85% 1.13% 0.18% -4.63%
Other expense -1.48% -1.60% -1.41% -2.82% -7.35%
Net earnings before income taxes 21.51% 16.63% 18.99% 15.83% 12.69%
Income tax expense -4.33 -1.62 -3.70 -2.98 -1.65
Net earnings 17.18% 15.00% 15.30% 12.85% 11.04%
Earnings attributable to noncontrolling interests -0.05 -0.04 -0.06 -0.05 -0.04
Net earnings attributable to Motorola Solutions, Inc. 17.13% 14.96% 15.24% 12.80% 11.01%

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).

The common-size income statement analysis reveals a consistent trajectory of margin expansion and improved operational efficiency from 2019 to 2023. Net earnings attributable to the company grew from 11.01% of net sales in 2019 to 17.13% in 2023, reflecting a strengthened bottom-line performance driven by both operational gains and a reduction in non-recurring expenses.

Revenue Composition
The revenue mix has remained relatively stable, with a slight strategic shift toward services. Net sales from products decreased from 60.17% in 2019 to 58.27% in 2023, while services grew from 39.83% to 41.73% over the same period. This transition suggests a modest move toward a recurring revenue model.
Gross Profitability
Gross margins have demonstrated resilience, ending the period at 49.81% in 2023, nearly identical to the 49.84% recorded in 2019. A notable contraction occurred in 2022, where the gross margin dipped to 46.41% due to a peak in total costs of sales at 53.59%. However, a full recovery was achieved by 2023, with costs of sales returning to 50.19%.
Operating Expense Management
A consistent improvement in operating leverage is evident through the reduction of selling, general, and administrative (SG&A) expenses, which declined from 17.79% of net sales in 2019 to 15.64% in 2023. Research and development expenditures remained stable, fluctuating narrowly between 8.55% and 9.25%, indicating a steady commitment to innovation relative to revenue growth. Consequently, operating earnings improved from 20.05% in 2019 to a peak of 22.99% in 2023.
Non-Operating Items and Net Profitability
The impact of non-operating items was most pronounced in 2019, where a U.S. pension settlement totaling 4.55% of net sales significantly suppressed net earnings. Over time, net interest expense as a percentage of sales improved from -2.79% in 2019 to -2.16% in 2023. The combined effect of lower SG&A, the absence of large one-time settlements, and disciplined cost management resulted in a steady climb in net earnings attributable to the company, peaking at 17.13% in 2023.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?