Operating Profit Margin
since 2005
Calculation
Motorola Solutions Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating earnings (loss)1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 22.99% | = | 100 | × | 2,294) | ÷ | 9,978) |
| Dec 31, 2022 | 18.23% | = | 100 | × | 1,661) | ÷ | 9,112) |
| Dec 31, 2021 | 20.40% | = | 100 | × | 1,667) | ÷ | 8,171) |
| Dec 31, 2020 | 18.65% | = | 100 | × | 1,383) | ÷ | 7,414) |
| Dec 31, 2019 | 20.05% | = | 100 | × | 1,581) | ÷ | 7,887) |
| Dec 31, 2018 | 17.09% | = | 100 | × | 1,255) | ÷ | 7,343) |
| Dec 31, 2017 | 20.09% | = | 100 | × | 1,282) | ÷ | 6,380) |
| Dec 31, 2016 | 17.67% | = | 100 | × | 1,067) | ÷ | 6,038) |
| Dec 31, 2015 | 17.45% | = | 100 | × | 994) | ÷ | 5,695) |
| Dec 31, 2014 | -17.11% | = | 100 | × | (1,006) | ÷ | 5,881) |
| Dec 31, 2013 | 13.97% | = | 100 | × | 1,215) | ÷ | 8,696) |
| Dec 31, 2012 | 14.44% | = | 100 | × | 1,256) | ÷ | 8,698) |
| Dec 31, 2011 | 10.46% | = | 100 | × | 858) | ÷ | 8,203) |
| Dec 31, 2010 | 4.09% | = | 100 | × | 789) | ÷ | 19,282) |
| Dec 31, 2009 | -0.67% | = | 100 | × | (148) | ÷ | 22,044) |
| Dec 31, 2008 | -7.93% | = | 100 | × | (2,391) | ÷ | 30,146) |
| Dec 31, 2007 | -1.51% | = | 100 | × | (553) | ÷ | 36,622) |
| Dec 31, 2006 | 9.54% | = | 100 | × | 4,092) | ÷ | 42,879) |
| Dec 31, 2005 | 12.75% | = | 100 | × | 4,696) | ÷ | 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 operational profitability of Motorola Solutions Inc. from 2005 to 2023 is characterized by three distinct phases: a period of significant volatility and contraction, a transitional recovery phase marked by an isolated sharp decline, and a sustained era of operational efficiency and margin expansion.
- Initial Volatility and Contraction (2005–2009)
- A downward trend in operating profit margins is observed starting from 12.75% in 2005, descending into negative territory by 2007. The margin reached a cyclical low of -7.93% in 2008, coinciding with a substantial decrease in net sales from 36,843 million USD in 2005 to 22,044 million USD in 2009. This period reflects a significant erosion of operational profitability.
- Recovery and Anomalous Decline (2010–2014)
- Operating margins returned to positive territory in 2010 at 4.09% and trended upward to peak at 14.44% in 2012. However, this recovery was interrupted in 2014 by a sharp contraction, where the operating profit margin fell to -17.11% due to an operating loss of 1,006 million USD. This period is noted for a fundamental shift in the scale of net sales, which stabilized at a significantly lower baseline than seen in the mid-2000s.
- Sustained Operational Efficiency (2015–2023)
- From 2015 onward, a consistent and stable upward trajectory in profitability is evident. Operating profit margins remained resiliently high, fluctuating between 17.09% and 20.40% for the majority of this period. The trend culminated in 2023, with the operating profit margin reaching its historical peak of 22.99%, supported by the highest operating earnings in the recorded series at 2,294 million USD.
Overall, the long-term trend indicates a successful transition from a high-volume, lower-margin business model to a lower-volume, high-margin operational structure, resulting in superior profitability by the end of the analyzed period.
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Comparison to Competitors
Motorola Solutions Inc., operating 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 | 22.99% | 29.82% | 38.52% | 26.37% | 5.64% | -6.55% | 10.68% |
| Dec 31, 2022 | 18.23% | 30.29% | 34.86% | 27.09% | 4.60% | 17.71% | 6.45% |
| Dec 31, 2021 | 20.40% | 29.78% | 31.37% | 25.76% | 5.46% | 30.24% | 3.48% |
| Dec 31, 2020 | 18.65% | 24.15% | 30.19% | 27.63% | 2.85% | 12.16% | 2.57% |
| Dec 31, 2019 | 20.05% | 24.57% | 33.42% | 27.39% | -0.21% | -1.38% | 2.78% |
| Dec 31, 2018 | 17.09% | 26.69% | 12.71% | 24.95% | — | 11.21% | 2.82% |
| Dec 31, 2017 | 20.09% | 26.76% | 28.57% | 24.94% | — | 4.75% | 3.82% |
| Dec 31, 2016 | 17.67% | 27.84% | 21.56% | 25.71% | — | 1.27% | 4.82% |
| Dec 31, 2015 | 17.45% | 30.48% | 17.83% | 21.91% | — | -2.80% | 7.37% |
| Dec 31, 2014 | -17.11% | 28.72% | 21.49% | 19.82% | — | — | 5.47% |
| Dec 31, 2013 | 13.97% | 28.67% | — | 23.03% | — | — | 2.34% |
| Dec 31, 2012 | 14.44% | 35.30% | — | 21.85% | — | — | 4.54% |
| Dec 31, 2011 | 10.46% | 31.22% | — | 17.76% | — | — | 6.23% |
| Dec 31, 2010 | 4.09% | 28.19% | — | 22.89% | — | — | 5.65% |
| Dec 31, 2009 | -0.67% | 20.96% | — | 20.27% | — | — | 4.60% |
| Dec 31, 2008 | -7.93% | 19.32% | — | 23.88% | — | — | 7.45% |
| Dec 31, 2007 | -1.51% | 18.37% | — | 24.69% | — | — | 7.11% |
| Dec 31, 2006 | 9.54% | 12.70% | — | 24.56% | — | — | — |
| Dec 31, 2005 | 12.75% | 11.84% | — | 29.90% | — | — | — |
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).