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
Quarterly Data

Motorola Solutions Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Jun 29, 2024 Mar 30, 2024 Dec 31, 2023 Sep 30, 2023 Jul 1, 2023 Apr 1, 2023 Dec 31, 2022 Oct 1, 2022 Jul 2, 2022 Apr 2, 2022 Dec 31, 2021 Oct 2, 2021 Jul 3, 2021 Apr 3, 2021 Dec 31, 2020 Sep 26, 2020 Jun 27, 2020 Mar 28, 2020 Dec 31, 2019 Sep 28, 2019 Jun 29, 2019 Mar 30, 2019
Net sales from products 59.47 58.81 61.48 58.29 56.14 56.38 61.73 60.64 56.64 55.29 58.84 57.95 55.50 52.23 56.40 55.89 54.20 53.41 62.58 59.98 60.11 57.03
Net sales from services 40.53 41.19 38.52 41.71 43.86 43.62 38.27 39.36 43.36 44.71 41.16 42.05 44.50 47.77 43.60 44.11 45.80 46.59 37.42 40.02 39.89 42.97
Net sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Costs of products sales -24.85 -25.12 -25.32 -25.74 -26.47 -26.53 -27.74 -27.77 -29.77 -28.96 -25.69 -26.53 -25.93 -24.70 -25.30 -26.07 -25.53 -23.99 -25.84 -25.13 -26.34 -26.80
Costs of services sales -24.20 -24.99 -23.60 -24.18 -24.05 -25.29 -22.35 -28.78 -23.97 -25.74 -23.32 -23.87 -25.77 -26.79 -24.29 -25.27 -27.13 -28.46 -22.81 -24.37 -23.60 -26.55
Costs of sales -49.05% -50.10% -48.91% -49.92% -50.52% -51.82% -50.09% -56.55% -53.74% -54.70% -49.01% -50.40% -51.70% -51.49% -49.58% -51.34% -52.66% -52.45% -48.65% -49.50% -49.95% -53.35%
Gross margin 50.95% 49.90% 51.09% 50.08% 49.48% 48.18% 49.91% 43.45% 46.26% 45.30% 50.99% 49.60% 48.30% 48.51% 50.42% 48.66% 47.34% 47.55% 51.35% 50.50% 50.05% 46.65%
Selling, general and administrative expenses -16.36 -16.62 -14.85 -14.87 -16.23 -16.95 -13.96 -15.93 -16.64 -17.86 -15.86 -16.66 -16.79 -17.09 -15.05 -16.76 -18.36 -20.60 -15.40 -18.00 -18.87 -19.73
Research and development expenditures -8.37 -9.13 -7.65 -8.41 -8.95 -9.67 -7.50 -8.30 -8.93 -9.94 -8.19 -8.69 -9.18 -10.15 -8.01 -9.37 -9.95 -10.15 -7.70 -8.63 -9.14 -9.78
Other charges -1.71 -2.43 -2.67 -1.80 -2.75 -3.18 -2.92 -3.50 -3.97 -4.86 -3.32 -2.85 -3.55 -4.46 -2.99 -3.69 -5.56 -1.15 -3.41 -3.16 -3.28 -3.32
Operating earnings 24.51% 21.72% 25.91% 25.00% 21.56% 18.38% 25.53% 15.72% 16.73% 12.63% 23.62% 21.40% 18.77% 16.81% 24.37% 18.84% 13.47% 15.65% 24.83% 20.71% 18.76% 13.82%
Interest expense, net -2.63 -1.84 -1.83 -2.07 -2.37 -2.49 -1.99 -2.53 -2.62 -2.96 -2.33 -2.66 -2.23 -3.05 -2.29 -3.10 -3.58 -3.14 -2.31 -2.71 -3.01 -3.32
Gain (loss) on sales of investments and businesses, net 0.00 0.00 0.00 -0.04 0.00 0.05 0.00 0.04 0.00 0.11 0.04 0.00 0.00 0.00 -0.04 -0.05 0.00 0.00 0.04 0.00 0.16 0.06
Other, net 0.19 -23.65 0.81 0.27 1.08 0.55 0.96 0.80 -0.09 1.80 0.99 0.47 0.71 2.54 0.97 -2.25 0.99 1.03 -14.44 -0.55 -1.13 0.60
Other expense -2.44% -25.49% -1.02% -1.84% -1.29% -1.89% -1.03% -1.69% -2.71% -1.06% -1.29% -2.18% -1.52% -0.51% -1.36% -5.41% -2.60% -2.11% -16.71% -3.26% -3.98% -2.66%
Net earnings (loss) before income taxes 22.07% -3.77% 24.89% 23.16% 20.27% 16.49% 24.49% 14.03% 14.02% 11.58% 22.33% 19.22% 17.25% 16.30% 23.01% 13.44% 10.88% 13.53% 8.12% 17.45% 14.78% 11.16%
Income tax (expense) benefit -5.14 2.18 -3.93 -4.97 -4.74 -3.64 -2.70 -2.23 -3.32 2.59 -4.96 -4.60 -2.33 -2.48 -4.84 -2.41 -2.47 -1.57 2.10 -4.01 -3.60 -1.99
Net earnings (loss) 16.93% -1.59% 20.96% 18.19% 15.52% 12.85% 21.80% 11.80% 10.70% 14.16% 17.37% 14.62% 14.92% 13.82% 18.17% 11.03% 8.41% 11.96% 10.23% 13.44% 11.18% 9.17%
Earnings attributable to non-controlling interests -0.08 -0.04 -0.04 -0.04 -0.08 -0.05 -0.04 -0.04 -0.05 -0.05 -0.09 -0.05 -0.05 -0.06 -0.04 -0.05 -0.06 -0.06 0.00 -0.05 -0.05 -0.06
Net earnings (loss) attributable to Motorola Solutions, Inc. 16.86% -1.63% 20.93% 18.15% 15.44% 12.81% 21.76% 11.76% 10.65% 14.11% 17.28% 14.57% 14.87% 13.76% 18.13% 10.97% 8.34% 11.90% 10.23% 13.39% 11.13% 9.11%

Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-28), 10-Q (reporting date: 2019-06-29), 10-Q (reporting date: 2019-03-30).


Net Sales Composition
The proportion of net sales from products fluctuates moderately between approximately 52% and 62%, with a slight dip around early 2020 followed by a recovery towards the end of 2023. Conversely, net sales from services exhibit an inverse pattern, ranging roughly from 38% to 48%. This indicates a somewhat balanced sales mix with periodic shifts between product and service sales contributions.
Cost of Sales Analysis
The combined costs of sales consistently consume around 49% to 57% of net sales, with some volatility. Notably, costs of product sales generally remain near 25%, though with occasional peaks up to 29%, especially in 2021 and 2022. Costs of service sales show greater variability, peaking near 29% in certain quarters but dropping below 24% in others. This variability in cost components impacts the gross margin.
Gross Margin Trends
Gross margins demonstrate moderate fluctuation, generally lying between about 43% and 51% of net sales. After a decline in gross margin around 2021-2022, a recovery is observed in late 2022 through 2023, reaching approximately 51% in some quarters. This recovery suggests improved profitability in core operations during this period.
Operating Expenses
Selling, general and administrative expenses show a general downward trend from almost 20% in early 2019 to near 14%-16% in later periods, indicating improved operational efficiency. Research and development expenditures maintain a band between roughly 7.5% and 10%, with slight reductions over time. Other charges are somewhat irregular but tend to hover within a -1.7% to -5.5% range, occasionally spiking, reflecting episodic impacts on operating costs.
Operating Earnings
Operating earnings as a percentage of net sales vary considerably, with notable peaks reaching above 25% in certain quarters at the end of 2019, 2020, and in 2023. Conversely, troughs occur near 12%-16%, especially in 2021 and early 2022. The overall pattern indicates cyclicality but with a general resilience in operational profitability.
Interest and Other Income/Expenses
Interest expense trends positively, declining from about -3.3% to near -1.8% by 2023 before rising again slightly, which suggests improved debt management followed by some fluctuation. Gains and losses on sales of investments and businesses are irregular and generally minor, while the "Other, net" category shows sporadic large variations, including a significant negative impact in early 2024, which notably affects net profitability in that quarter.
Net Earnings Before Taxes and After Taxes
Net earnings before income taxes reflect a generally positive trend with growth from approximately 11% to above 24% in certain quarters, though with notable dips including a sharp drop below zero in early 2024. Income tax expense as a percentage of net sales is variable, sometimes positive (tax benefit) and other times negative, influencing net earnings fluctuations. Net earnings after taxes mostly stay positive, peaking around 21%-22% in late 2022 and 2023 but experiencing a sudden loss in early 2024 followed by recovery.
Overall Profitability Pattern
Net earnings attributable to the company closely mirror net earnings trends, showing strong performance in most periods with margins often exceeding 10%, and peaks above 20%. The abrupt negative earnings in early 2024 stand out as an anomaly, partially related to atypical other expenses, but this is followed by a rebound. This indicates overall solid profitability with occasional volatility driven by non-operational factors and tax effects.