Return on Equity (ROE)
since 2005
Calculation
Motorola Solutions Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings (loss) attributable to Motorola Solutions, Inc.1 | ÷ | Total Motorola Solutions, Inc. stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 236.05% | = | 100 | × | 1,709) | ÷ | 724) |
| Dec 31, 2022 | 1,175.00% | = | 100 | × | 1,363) | ÷ | 116) |
| Dec 31, 2021 | — | = | 100 | × | 1,245) | ÷ | (40) |
| Dec 31, 2020 | — | = | 100 | × | 949) | ÷ | (558) |
| Dec 31, 2019 | — | = | 100 | × | 868) | ÷ | (700) |
| Dec 31, 2018 | — | = | 100 | × | 966) | ÷ | (1,293) |
| Dec 31, 2017 | — | = | 100 | × | (155) | ÷ | (1,742) |
| Dec 31, 2016 | — | = | 100 | × | 560) | ÷ | (964) |
| Dec 31, 2015 | — | = | 100 | × | 610) | ÷ | (106) |
| Dec 31, 2014 | 47.50% | = | 100 | × | 1,299) | ÷ | 2,735) |
| Dec 31, 2013 | 30.04% | = | 100 | × | 1,099) | ÷ | 3,659) |
| Dec 31, 2012 | 26.98% | = | 100 | × | 881) | ÷ | 3,265) |
| Dec 31, 2011 | 22.21% | = | 100 | × | 1,158) | ÷ | 5,214) |
| Dec 31, 2010 | 5.82% | = | 100 | × | 633) | ÷ | 10,885) |
| Dec 31, 2009 | -0.52% | = | 100 | × | (51) | ÷ | 9,775) |
| Dec 31, 2008 | -44.64% | = | 100 | × | (4,244) | ÷ | 9,507) |
| Dec 31, 2007 | -0.32% | = | 100 | × | (49) | ÷ | 15,447) |
| Dec 31, 2006 | 21.36% | = | 100 | × | 3,661) | ÷ | 17,142) |
| Dec 31, 2005 | 27.46% | = | 100 | × | 4,578) | ÷ | 16,673) |
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 of Motorola Solutions Inc. since 2005 is characterized by significant volatility in net earnings and a prolonged period of equity erosion, culminating in a distorted return on equity (ROE) profile in recent years.
- Earnings Performance and Volatility
- Net earnings exhibited a cyclical pattern, beginning with strong profitability in 2005 and 2006, followed by a period of instability between 2007 and 2009, which included a substantial loss of 4,244 million US dollars in 2008. A recovery phase began in 2010, with earnings generally trending upward until a brief loss in 2017. From 2018 through 2023, a consistent growth trajectory is observed, with net earnings reaching a peak of 1,709 million US dollars in 2023.
- Equity Position and Capital Structure
- A long-term downward trend in total stockholders' equity is evident. Equity declined from 16,673 million US dollars in 2005 to 2,735 million US dollars by 2014. This decline transitioned into a deficit period from 2015 to 2021, with the lowest point occurring in 2017 at negative 1,742 million US dollars. A reversal of this trend occurred in 2022, as equity returned to positive territory and grew to 724 million US dollars by 2023.
- Return on Equity (ROE) Analysis
- The ROE fluctuated significantly in correlation with earnings and equity levels. Early figures showed healthy returns above 20% in 2005 and 2006, followed by negative returns during the 2007-2009 period. ROE surged between 2010 and 2014, reaching 47.50% as earnings recovered while the equity base diminished. The absence of ROE values from 2015 to 2021 coincides with the period of negative stockholders' equity, during which the ratio becomes mathematically atypical. The extreme spikes in ROE observed in 2022 (1,175.00%) and 2023 (236.05%) are attributed to the combination of strong net earnings and a very small positive equity base, rather than a fundamental shift in operational efficiency.
In summary, while the company has successfully restored its profitability and returned to a positive equity position, the recent ROE figures are highly inflated due to the depleted capital base. The long-term trend indicates a transition from a high-equity structure to a leaner, more leveraged financial position with increasing earnings capacity.
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Comparison to Competitors
Motorola Solutions Inc., ROE, 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 | 236.05% | 156.08% | 28.91% | 28.44% | — | -9.71% | 32.45% |
| Dec 31, 2022 | 1,175.00% | 196.96% | 27.68% | 29.70% | — | 10.61% | 20.00% |
| Dec 31, 2021 | — | 150.07% | 21.13% | 25.66% | 131.10% | 20.14% | 10.20% |
| Dec 31, 2020 | — | 87.87% | 19.11% | 29.57% | — | 7.75% | 7.91% |
| Dec 31, 2019 | — | 61.06% | 29.71% | 34.62% | — | -2.43% | 7.64% |
| Dec 31, 2018 | — | 55.56% | 15.31% | 0.25% | — | 26.79% | 5.47% |
| Dec 31, 2017 | — | 36.07% | 25.46% | 14.53% | — | -16.56% | 8.64% |
| Dec 31, 2016 | — | 35.62% | 16.63% | 16.89% | — | 1.87% | 9.99% |
| Dec 31, 2015 | — | 44.74% | 15.37% | 15.04% | — | -0.89% | 16.46% |
| Dec 31, 2014 | 47.50% | 35.42% | 15.63% | 13.86% | — | — | 11.55% |
| Dec 31, 2013 | 30.04% | 29.98% | — | 16.89% | — | — | 5.70% |
| Dec 31, 2012 | 26.98% | 35.30% | — | 15.68% | — | — | 8.82% |
| Dec 31, 2011 | 22.21% | 33.83% | — | 13.74% | — | — | 14.00% |
| Dec 31, 2010 | 5.82% | 29.32% | — | 17.55% | — | — | 11.98% |
| Dec 31, 2009 | -0.52% | 20.49% | — | 15.87% | — | — | 9.02% |
| Dec 31, 2008 | -44.64% | 22.99% | — | 23.44% | — | — | 16.74% |
| Dec 31, 2007 | -0.32% | 24.06% | — | 23.29% | — | — | 16.69% |
| Dec 31, 2006 | 21.36% | 19.92% | — | 23.34% | — | — | — |
| Dec 31, 2005 | 27.46% | 17.88% | — | 24.77% | — | — | — |
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., ROE, long-term trends, comparison to sector (technology hardware & equipment)
| Motorola Solutions Inc. | Technology Hardware & Equipment | |
|---|---|---|
| Dec 31, 2023 | 236.05% | 100.63% |
| Dec 31, 2022 | 1,175.00% | 122.76% |
| Dec 31, 2021 | — | 96.47% |
| Dec 31, 2020 | — | 68.72% |
| Dec 31, 2019 | — | 52.95% |
| Dec 31, 2018 | — | 39.07% |
| Dec 31, 2017 | — | 28.71% |
| Dec 31, 2016 | — | 29.20% |
| Dec 31, 2015 | — | 34.61% |
| Dec 31, 2014 | 47.50% | 28.07% |
| Dec 31, 2013 | 30.04% | 25.70% |
| Dec 31, 2012 | 26.98% | 29.32% |
| Dec 31, 2011 | 22.21% | 26.14% |
| Dec 31, 2010 | 5.82% | 23.63% |
| Dec 31, 2009 | -0.52% | 17.78% |
| Dec 31, 2008 | -44.64% | 23.25% |
| Dec 31, 2007 | -0.32% | 23.52% |
| Dec 31, 2006 | 21.36% | 22.33% |
| Dec 31, 2005 | 27.46% | 23.09% |
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., ROE, long-term trends, comparison to industry (information technology)
| Motorola Solutions Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2023 | 236.05% | 31.26% |
| Dec 31, 2022 | 1,175.00% | 38.03% |
| Dec 31, 2021 | — | 41.64% |
| Dec 31, 2020 | — | 35.38% |
| Dec 31, 2019 | — | 35.94% |
| Dec 31, 2018 | — | 30.23% |
| Dec 31, 2017 | — | 23.19% |
| Dec 31, 2016 | — | 23.00% |
| Dec 31, 2015 | — | 25.97% |
| Dec 31, 2014 | 47.50% | 25.43% |
| Dec 31, 2013 | 30.04% | 24.73% |
| Dec 31, 2012 | 26.98% | 26.09% |
| Dec 31, 2011 | 22.21% | 29.03% |
| Dec 31, 2010 | 5.82% | 27.62% |
| Dec 31, 2009 | -0.52% | 20.05% |
| Dec 31, 2008 | -44.64% | 25.24% |
| Dec 31, 2007 | -0.32% | 23.67% |
| Dec 31, 2006 | 21.36% | 22.58% |
| Dec 31, 2005 | 27.46% | 21.92% |
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).