Name: Motorola Solutions Inc. (NYSE:MSI) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Motorola Solutions Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net earnings	1,714)	1,367)	1,250)	953)	871)
Depreciation and amortization	356)	440)	438)	409)	394)
Non-cash other (income) charges	14)	23)	3)	(13)	35)
Exit of video manufacturing operations	24)	—)	—)	—)	—)
Loss on ESN fixed asset impairment	—)	147)	—)	—)	—)
U.S. pension settlement loss	—)	—)	—)	—)	359)
Gain from the extinguishment of 2.00% senior convertible notes	—)	—)	—)	—)	(4)
Share-based compensation expenses	212)	172)	129)	129)	118)
(Gains) losses on sales of investments and businesses, net	—)	(3)	(1)	2)	(5)
Losses from the extinguishment of long-term debt	—)	6)	18)	56)	50)
Accounts receivable	(180)	(112)	3)	90)	(79)
Inventories	200)	(242)	(284)	(14)	(74)
Other current assets and contract assets	(82)	(1)	(205)	167)	49)
Accounts payable, accrued liabilities, and contract liabilities	(144)	451)	578)	(116)	198)
Other assets and liabilities	(38)	(91)	(126)	(25)	(5)
Deferred income taxes	(32)	(334)	34)	(25)	(84)
Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments	(276)	(329)	—)	77)	5)
Adjustments to reconcile Net earnings to Net cash provided by operating activities	330)	456)	587)	660)	952)
Net cash provided by operating activities	2,044)	1,823)	1,837)	1,613)	1,823)
Acquisitions and investments, net	(180)	(1,177)	(521)	(287)	(709)
Proceeds from sales of investments	19)	46)	16)	11)	16)
Capital expenditures	(253)	(256)	(243)	(217)	(248)
Proceeds from sales of property, plant and equipment	—)	—)	6)	56)	7)
Net cash used for investing activities	(414)	(1,387)	(742)	(437)	(934)
Net proceeds from issuance of debt	—)	595)	844)	892)	1,804)
Repayment of debt	(1)	(285)	(353)	(914)	(2,039)
Repayment of unsecured revolving credit facility draw	—)	—)	—)	(800)	—)
Proceeds from unsecured revolving credit facility draw	—)	—)	—)	800)	—)
Revolving credit facility renewal fees	—)	—)	(7)	—)	—)
Issuances of common stock	104)	156)	102)	108)	114)
Purchases of common stock	(804)	(836)	(528)	(612)	(315)
Settlement of conversion premium on 2.00% senior convertible notes	—)	—)	—)	—)	(326)
Payment of dividends	(589)	(530)	(482)	(436)	(379)
Payment of dividends to noncontrolling interest	(5)	(6)	(5)	(4)	(3)
Net cash used for financing activities	(1,295)	(906)	(429)	(966)	(1,144)
Effect of exchange rate changes on cash and cash equivalents	45)	(79)	(46)	43)	(1)
Net increase (decrease) in cash and cash equivalents	380)	(549)	620)	253)	(256)
Cash and cash equivalents, beginning of period	1,325)	1,874)	1,254)	1,001)	1,257)
Cash and cash equivalents, end of period	1,705)	1,325)	1,874)	1,254)	1,001)

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).

Financial performance from 2019 to 2023 is characterized by consistent growth in net earnings and a strong capacity to generate cash from operations, which has been utilized to fund strategic acquisitions, maintain capital infrastructure, and return value to shareholders.

Operating Cash Flow Dynamics: Net earnings demonstrated a steady upward trajectory, increasing from 871 million US$ in 2019 to 1,714 million US$ in 2023. This growth is mirrored in the net cash provided by operating activities, which reached a peak of 2,044 million US$ in 2023. A significant contributing factor to the reconciliation of net earnings to operating cash is the increase in share-based compensation expenses, which rose from 118 million US$ in 2019 to 212 million US$ in 2023. Working capital adjustments have been volatile, with notable fluctuations in accounts receivable and inventories, particularly a significant cash outflow for accounts receivable in 2022 and 2023.
Investing Activity and Capital Allocation: Investing activities have been consistently negative, reflecting a strategy of growth through acquisition and maintenance of assets. Capital expenditures have remained stable, ranging between 217 million US$ and 256 million US$ annually. Acquisitions and investments showed significant volatility, peaking in 2022 with an outflow of 1,177 million US$, before decreasing sharply to 180 million US$ in 2023. This suggests a period of aggressive inorganic expansion followed by a more conservative investment phase.
Financing Strategy and Shareholder Distributions: Financing activities indicate a transition toward aggressive shareholder returns. Cash outflows for the purchase of common stock increased substantially from 315 million US$ in 2019 to 804 million US$ in 2023. Similarly, dividend payments grew steadily from 379 million US$ to 589 million US$ over the same period. Debt management was highly active between 2019 and 2021, with large-scale issuances and repayments, whereas 2023 saw negligible debt repayment and no new issuances, indicating a stabilizing debt profile.
Overall Liquidity and Cash Position: The net increase or decrease in cash has fluctuated annually due to the timing of large acquisitions and financing movements. However, the ending cash and cash equivalents position improved from 1,001 million US$ at the end of 2019 to 1,705 million US$ by the end of 2023. The company maintains a healthy liquidity cushion, supported by operating cash flows that comfortably cover both capital expenditures and the increasing scale of dividend payments.

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