Net Profit Margin
since 2005
Calculation
Motorola Solutions Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net earnings (loss) attributable to Motorola Solutions, Inc.1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 17.13% | = | 100 | × | 1,709) | ÷ | 9,978) |
| Dec 31, 2022 | 14.96% | = | 100 | × | 1,363) | ÷ | 9,112) |
| Dec 31, 2021 | 15.24% | = | 100 | × | 1,245) | ÷ | 8,171) |
| Dec 31, 2020 | 12.80% | = | 100 | × | 949) | ÷ | 7,414) |
| Dec 31, 2019 | 11.01% | = | 100 | × | 868) | ÷ | 7,887) |
| Dec 31, 2018 | 13.16% | = | 100 | × | 966) | ÷ | 7,343) |
| Dec 31, 2017 | -2.43% | = | 100 | × | (155) | ÷ | 6,380) |
| Dec 31, 2016 | 9.27% | = | 100 | × | 560) | ÷ | 6,038) |
| Dec 31, 2015 | 10.71% | = | 100 | × | 610) | ÷ | 5,695) |
| Dec 31, 2014 | 22.09% | = | 100 | × | 1,299) | ÷ | 5,881) |
| Dec 31, 2013 | 12.64% | = | 100 | × | 1,099) | ÷ | 8,696) |
| Dec 31, 2012 | 10.13% | = | 100 | × | 881) | ÷ | 8,698) |
| Dec 31, 2011 | 14.12% | = | 100 | × | 1,158) | ÷ | 8,203) |
| Dec 31, 2010 | 3.28% | = | 100 | × | 633) | ÷ | 19,282) |
| Dec 31, 2009 | -0.23% | = | 100 | × | (51) | ÷ | 22,044) |
| Dec 31, 2008 | -14.08% | = | 100 | × | (4,244) | ÷ | 30,146) |
| Dec 31, 2007 | -0.13% | = | 100 | × | (49) | ÷ | 36,622) |
| Dec 31, 2006 | 8.54% | = | 100 | × | 3,661) | ÷ | 42,879) |
| Dec 31, 2005 | 12.43% | = | 100 | × | 4,578) | ÷ | 36,843) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance from 2005 to 2023 is characterized by three distinct phases: a period of high volatility and contraction, a structural transition toward a lower-revenue but higher-margin model, and a recent era of sustained profitability and growth.
- Initial Volatility and Contraction (2005–2009)
- The period began with a net profit margin of 12.43% in 2005, which declined to 8.54% in 2006. A significant downturn followed, with margins turning negative in 2007 (-0.13%) and reaching a trough in 2008 at -14.08%. This coincided with a substantial reduction in net sales, which fell from $36.8 billion in 2005 to $22.0 billion by 2009.
- Structural Transition and Margin Optimization (2010–2017)
- A pivot in the business model is evident starting in 2010, as the company returned to profitability. Despite a drastic reduction in the scale of operations—with net sales dropping from $19.3 billion in 2010 to $5.9 billion in 2014—the net profit margin expanded significantly, peaking at 22.09% in 2014. This inverse relationship between sales volume and profit margin suggests a strategic shift toward higher-value products or services. However, this stability was interrupted in 2017, when the margin dipped to -2.43%.
- Stabilization and Consistent Growth (2018–2023)
- Since 2018, a consistent upward trend in both revenue and profitability has been observed. The net profit margin recovered to 13.16% in 2018 and climbed steadily to reach 17.13% by 2023. This period is marked by a simultaneous increase in net sales, which grew from $7.3 billion in 2017 to $9.98 billion in 2023, indicating that the company successfully scaled its high-margin operations without sacrificing efficiency.
Overall, the data indicates a transformation from a high-volume, volatile revenue base to a leaner, more profitable operational structure. The current trajectory shows a strengthened ability to convert sales into net earnings, with the 2023 margin representing one of the strongest levels of efficiency in the observed timeframe.
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Comparison to Competitors
Motorola Solutions Inc., net profit margin, long-term trends, comparison to competitors
| Motorola Solutions Inc. | Apple Inc. | Arista Networks Inc. | Cisco Systems Inc. | Dell Technologies Inc. | Lumentum Holdings Inc. | Super Micro Computer Inc. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 17.13% | 25.31% | 35.62% | 22.13% | 2.39% | -7.45% | 8.98% |
| Dec 31, 2022 | 14.96% | 25.31% | 30.87% | 22.91% | 5.50% | 11.61% | 5.49% |
| Dec 31, 2021 | 15.24% | 25.88% | 28.52% | 21.26% | 3.45% | 22.80% | 3.14% |
| Dec 31, 2020 | 12.80% | 20.91% | 27.38% | 22.75% | 5.01% | 8.07% | 2.52% |
| Dec 31, 2019 | 11.01% | 21.24% | 35.67% | 22.39% | -2.55% | -2.33% | 2.05% |
| Dec 31, 2018 | 13.16% | 22.41% | 15.25% | 0.22% | — | 19.88% | 1.37% |
| Dec 31, 2017 | -2.43% | 21.09% | 25.71% | 20.02% | — | -10.23% | 2.69% |
| Dec 31, 2016 | 9.27% | 21.19% | 16.31% | 21.81% | — | 1.03% | 3.25% |
| Dec 31, 2015 | 10.71% | 22.85% | 14.46% | 18.27% | — | -0.41% | 5.12% |
| Dec 31, 2014 | 22.09% | 21.61% | 14.87% | 16.66% | — | — | 3.69% |
| Dec 31, 2013 | 12.64% | 21.67% | — | 20.54% | — | — | 1.83% |
| Dec 31, 2012 | 10.13% | 26.67% | — | 17.46% | — | — | 2.94% |
| Dec 31, 2011 | 14.12% | 23.95% | — | 15.02% | — | — | 4.27% |
| Dec 31, 2010 | 3.28% | 21.48% | — | 19.40% | — | — | 3.73% |
| Dec 31, 2009 | -0.23% | 15.61% | — | 16.98% | — | — | 3.19% |
| Dec 31, 2008 | -14.08% | 14.88% | — | 20.36% | — | — | 4.70% |
| Dec 31, 2007 | -0.13% | 14.56% | — | 21.00% | — | — | 4.60% |
| Dec 31, 2006 | 8.54% | 10.30% | — | 19.59% | — | — | — |
| Dec 31, 2005 | 12.43% | 9.58% | — | 23.15% | — | — | — |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Technology Hardware & Equipment)
Motorola Solutions Inc., net profit margin, long-term trends, comparison to sector (technology hardware & equipment)
| Motorola Solutions Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Dec 31, 2023 | 17.13% | 20.57% |
| Dec 31, 2022 | 14.96% | 21.31% |
| Dec 31, 2021 | 15.24% | 21.21% |
| Dec 31, 2020 | 12.80% | 17.50% |
| Dec 31, 2019 | 11.01% | 15.96% |
| Dec 31, 2018 | 13.16% | 18.73% |
| Dec 31, 2017 | -2.43% | 20.66% |
| Dec 31, 2016 | 9.27% | 21.06% |
| Dec 31, 2015 | 10.71% | 21.84% |
| Dec 31, 2014 | 22.09% | 20.48% |
| Dec 31, 2013 | 12.64% | 21.32% |
| Dec 31, 2012 | 10.13% | 24.46% |
| Dec 31, 2011 | 14.12% | 21.29% |
| Dec 31, 2010 | 3.28% | 20.58% |
| Dec 31, 2009 | -0.23% | 16.20% |
| Dec 31, 2008 | -14.08% | 17.79% |
| Dec 31, 2007 | -0.13% | 18.28% |
| Dec 31, 2006 | 8.54% | 15.84% |
| Dec 31, 2005 | 12.43% | 18.27% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Motorola Solutions Inc., net profit margin, long-term trends, comparison to industry (information technology)
| Motorola Solutions Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2023 | 17.13% | 20.24% |
| Dec 31, 2022 | 14.96% | 22.27% |
| Dec 31, 2021 | 15.24% | 23.48% |
| Dec 31, 2020 | 12.80% | 19.76% |
| Dec 31, 2019 | 11.01% | 19.73% |
| Dec 31, 2018 | 13.16% | 18.59% |
| Dec 31, 2017 | -2.43% | 17.77% |
| Dec 31, 2016 | 9.27% | 17.58% |
| Dec 31, 2015 | 10.71% | 18.32% |
| Dec 31, 2014 | 22.09% | 19.33% |
| Dec 31, 2013 | 12.64% | 20.15% |
| Dec 31, 2012 | 10.13% | 20.07% |
| Dec 31, 2011 | 14.12% | 20.71% |
| Dec 31, 2010 | 3.28% | 20.19% |
| Dec 31, 2009 | -0.23% | 14.45% |
| Dec 31, 2008 | -14.08% | 15.07% |
| Dec 31, 2007 | -0.13% | 15.71% |
| Dec 31, 2006 | 8.54% | 16.26% |
| Dec 31, 2005 | 12.43% | 16.64% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).