Stock Analysis on Net
Stock Analysis on Net

Motorola Solutions Inc. (NYSE:MSI)

$22.49

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

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

Motorola Solutions Inc., operating profit margin, long-term trends, calculation

Microsoft Excel
Operating profit margin = 100 × Operating earnings (loss)1 ÷ Net sales1
Dec 31, 2023 = 100 × ÷
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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

Operating Earnings (Loss)
The operating earnings displayed a marked decline between 2005 and 2008, with the figure moving from a positive 4696 million USD in 2005 to a negative peak loss of -2391 million USD in 2008. Following this period of losses, there was a recovery trend starting in 2009, shifting back to positive earnings by 2010. From 2010 onward, operating earnings generally increased, showing fluctuations but maintaining a positive trajectory, culminating in a high of 2294 million USD in 2023. This pattern indicates a significant turnaround after a period of operational difficulties.
Net Sales
Net sales demonstrated volatility over the entire period. Initially, sales were strong at 36843 million USD in 2005 and peaked at 42879 million USD in 2006. However, a sharp decline followed, reducing sales to as low as 5695 million USD in 2015. After this trough, net sales resumed a gradual recovery trend, increasing steadily year over year to reach 9978 million USD in 2023. This suggests a substantial restructuring or divestiture occurred around 2007–2015, followed by a phase of growth and stabilization.
Operating Profit Margin
The operating profit margin paralleled the trends seen in operating earnings and sales. It started at a healthy 12.75% in 2005, then dropped significantly to negative values during the 2007 to 2009 period, reaching a bottom of -17.11% in 2014. From 2010 onwards, the margin showed progressive improvement, consistently returning to positive territory and hitting 22.99% in 2023. This upward trend in margin performance underscores improvements in operational efficiency and profitability after the initial downturn.
Summary Insight
The data reveals a cycle of substantial operational and financial challenges followed by a recovery and growth phase. The initial years had high sales volume with corresponding earnings and margin, deteriorating sharply between 2007 and 2009, which suggests major restructuring or an adverse market impact. Following these years, an evident recovery phase is characterized by lower but increasing sales and improving profitability, culminating in strong operating profit margins by 2023. The improvement in operating earnings and margins despite lower sales in the latter years indicates enhanced cost control or a shift towards higher-margin business segments.

Comparison to Competitors

Motorola Solutions Inc., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel
Motorola Solutions Inc. Apple Inc. Arista Networks Inc. Cisco Systems Inc. Dell Technologies Inc. Super Micro Computer Inc.
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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).