Analysis of Geographic Areas
Motorola Solutions Inc. operates in 4 regions: United States; United Kingdom; Canada; and Other, net of eliminations.
Area Asset Turnover
Motorola Solutions Inc., asset turnover by geographic area
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | 0.64 | 0.65 | 0.56 | 0.68 | 0.74 |
| United Kingdom | 0.38 | 0.34 | 0.53 | 0.30 | 0.28 |
| Canada | 1.03 | 0.93 | 0.34 | 0.25 | 0.26 |
| Other, net of eliminations | 3.11 | 2.24 | 7.63 | 4.22 | 4.88 |
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).
Analysis of geographic asset turnover reveals diverging efficiency trends across key markets between 2019 and 2023. While the primary market in the United States showed a period of contraction followed by stabilization, the Canadian market exhibited aggressive growth in asset productivity. The "Other" category continues to show extreme volatility and significantly higher ratios compared to established regional markets.
- United States
- The asset turnover ratio in the United States followed a U-shaped trajectory, declining from 0.74 in 2019 to a low of 0.56 in 2021. A subsequent recovery occurred in 2022, with the ratio stabilizing at 0.64 in 2023, indicating a moderate recovery in asset utilization efficiency.
- United Kingdom
- Performance in the United Kingdom remained relatively low and volatile. After starting at 0.28 in 2019, the ratio peaked at 0.53 in 2021 before retreating to 0.34 in 2022 and ending at 0.38 in 2023.
- Canada
- Canada demonstrated the most consistent and significant growth over the period. The ratio increased from 0.26 in 2019 to 1.03 in 2023. A sharp acceleration is noted between 2021 and 2022, where the ratio surged from 0.34 to 0.93, marking a transition to the most efficient of the three primary named geographic regions.
- Other, net of eliminations
- This segment is characterized by high volatility and outlier values. The ratio fluctuated from 4.88 in 2019 to a peak of 7.63 in 2021, followed by a steep decline to 2.24 in 2022 and a moderate increase to 3.11 in 2023. These values suggest a lean asset base relative to the revenue generated in these diversified regions.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Area Asset Turnover: United States
Motorola Solutions Inc.; United States; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 6,559) | 6,008) | 5,236) | 4,770) | 5,006) |
| Assets | 10,207) | 9,227) | 9,420) | 7,009) | 6,749) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.64 | 0.65 | 0.56 | 0.68 | 0.74 |
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).
1 2023 Calculation
Area asset turnover = Net sales ÷ Assets
= 6,559 ÷ 10,207 = 0.64
The financial performance in the United States market is characterized by steady revenue growth and a significant expansion of the asset base, which has influenced the overall efficiency of asset utilization over the five-year period.
- Net Sales Trends
- Net sales demonstrated an overall upward trajectory, increasing from 5,006 million USD in 2019 to 6,559 million USD by the end of 2023. While a brief contraction occurred in 2020, where sales dipped to 4,770 million USD, the subsequent recovery was robust, with annual growth accelerating through 2022 and 2023.
- Asset Base Expansion
- The asset base in the United States grew substantially, rising from 6,749 million USD in 2019 to 10,207 million USD in 2023. The most significant increase took place in 2021, when assets jumped to 9,420 million USD, indicating a period of intensified capital investment or acquisition within the region.
- Area Asset Turnover Analysis
- The area asset turnover ratio reflects a decline in efficiency relative to 2019 levels. The ratio dropped from 0.74 in 2019 to a period low of 0.56 in 2021, directly coinciding with the rapid expansion of assets that outpaced sales growth. Following this low point, the ratio recovered to 0.65 in 2022 and settled at 0.64 in 2023, suggesting that revenue generation has begun to catch up with the enlarged asset base, although efficiency remains below the 2019 baseline.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Area Asset Turnover: United Kingdom
Motorola Solutions Inc.; United Kingdom; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 769) | 789) | 849) | 740) | 692) |
| Assets | 2,034) | 2,321) | 1,588) | 2,460) | 2,460) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.38 | 0.34 | 0.53 | 0.30 | 0.28 |
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).
1 2023 Calculation
Area asset turnover = Net sales ÷ Assets
= 769 ÷ 2,034 = 0.38
The financial performance for the United Kingdom region between 2019 and 2023 is characterized by a period of growth in revenue followed by a moderate correction, coupled with significant volatility in the asset base. The area asset turnover ratio reflects these fluctuations, showing a peak in efficiency during 2021 before stabilizing at a higher level than the 2019 baseline.
- Net Sales Performance
- A growth trend is observed from 2019 to 2021, with net sales increasing from 692 million US$ to a peak of 849 million US$. Following this peak, a slight downward trend occurred, with revenue declining to 789 million US$ in 2022 and 769 million US$ in 2023.
- Asset Base Volatility
- The asset base remained stagnant at 2,460 million US$ between 2019 and 2020, followed by a substantial decrease to 1,588 million US$ in 2021. Assets then rose sharply to 2,321 million US$ in 2022 before decreasing to 2,034 million US$ by the end of 2023. This volatility suggests significant shifts in capital allocation or structural adjustments within the regional operations.
- Area Asset Turnover Analysis
- The asset turnover ratio increased marginally from 0.28 in 2019 to 0.30 in 2020. A significant spike to 0.53 was recorded in 2021, which is attributable to the simultaneous occurrence of peak net sales and a sharp reduction in total assets. In the subsequent two years, the ratio moderated to 0.34 in 2022 and 0.38 in 2023, indicating that while the peak efficiency of 2021 was not sustained, the region maintained a more favorable turnover rate than observed at the start of the period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Area Asset Turnover: Canada
Motorola Solutions Inc.; Canada; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 373) | 366) | 324) | 254) | 270) |
| Assets | 362) | 394) | 950) | 1,016) | 1,040) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.03 | 0.93 | 0.34 | 0.25 | 0.26 |
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).
1 2023 Calculation
Area asset turnover = Net sales ÷ Assets
= 373 ÷ 362 = 1.03
The financial performance for the Canadian geographic area is characterized by a significant improvement in asset utilization efficiency between 2019 and 2023. While net sales experienced steady growth following a minor contraction in 2020, the asset base underwent a substantial reduction, resulting in a sharp upward trajectory for the area asset turnover ratio.
- Net Sales Trend
- Net sales grew from US$ 270 million in 2019 to US$ 373 million in 2023. Following a slight dip to US$ 254 million in 2020, revenues increased consistently year-over-year, reflecting a positive growth trend in the region's top-line performance.
- Asset Base Contraction
- A marked decline in assets is observed, falling from US$ 1,040 million in 2019 to US$ 362 million in 2023. The most significant reduction occurred between 2021 and 2022, where assets decreased from US$ 950 million to US$ 394 million, indicating a major restructuring of the regional asset portfolio or a reallocation of resources.
- Area Asset Turnover Analysis
- The asset turnover ratio increased from 0.26 in 2019 to 1.03 in 2023. This growth was primarily driven by the combination of rising sales and a drastically reduced asset base. The ratio remained relatively stable between 2019 and 2020, began to climb in 2021, and experienced an exponential increase in 2022 and 2023, signifying a shift toward a significantly more efficient operational model where more revenue is generated per unit of asset.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Area Asset Turnover: Other, net of eliminations
Motorola Solutions Inc.; Other, net of eliminations; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 2,277) | 1,949) | 1,762) | 1,650) | 1,919) |
| Assets | 733) | 872) | 231) | 391) | 393) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.11 | 2.24 | 7.63 | 4.22 | 4.88 |
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).
1 2023 Calculation
Area asset turnover = Net sales ÷ Assets
= 2,277 ÷ 733 = 3.11
The "Other, net of eliminations" geographic segment exhibits a period of revenue recovery and significant volatility in asset utilization between 2019 and 2023. While net sales followed a generally positive trajectory after a temporary decline in 2020, the efficiency of asset employment fluctuated sharply due to substantial changes in the asset base.
- Net Sales Performance
- A contraction in revenue occurred in 2020, with net sales falling from US$ 1,919 million to US$ 1,650 million. However, a consistent growth trend was established thereafter, with sales increasing annually to reach US$ 2,277 million by December 31, 2023. This represents a recovery and subsequent expansion of the revenue stream in this segment.
- Asset Base Volatility
- The asset levels within this area experienced significant instability. Assets remained stable between 2019 and 2020, followed by a sharp decrease to US$ 231 million in 2021. This was followed by a substantial increase to US$ 872 million in 2022, before moderating to US$ 733 million in 2023. The magnitude of these shifts suggests significant reallocations of resources, acquisitions, or divestitures during this period.
- Area Asset Turnover Analysis
- The asset turnover ratio demonstrates an inverse relationship with the volatility of the asset base. A peak efficiency ratio of 7.63 was recorded in 2021, driven by the convergence of recovering sales and a minimized asset base. Conversely, the ratio dropped to its lowest point of 2.24 in 2022, corresponding with the sharp increase in total assets. By 2023, the ratio improved to 3.11, reflecting the combined effect of continued sales growth and a reduction in assets.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Net sales
Motorola Solutions Inc., net sales by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | 6,559) | 6,008) | 5,236) | 4,770) | 5,006) |
| United Kingdom | 769) | 789) | 849) | 740) | 692) |
| Canada | 373) | 366) | 324) | 254) | 270) |
| Other, net of eliminations | 2,277) | 1,949) | 1,762) | 1,650) | 1,919) |
| Total | 9,978) | 9,112) | 8,171) | 7,414) | 7,887) |
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).
Total net sales exhibited a resilient growth pattern over the five-year period from 2019 to 2023. Following a brief contraction in 2020, where total sales decreased from 7,887 million to 7,414 million, a period of sustained expansion occurred, culminating in total net sales of 9,978 million by the end of 2023. This represents an overall increase of approximately 26.5% over the analyzed timeframe.
- United States Market Performance
- The United States remains the primary revenue driver, consistently accounting for the largest share of net sales. After a decline in 2020 to 4,770 million, the region experienced accelerated growth, reaching 6,559 million in 2023. This reflects a cumulative increase of 31.2% since 2019, underscoring a strong recovery and expansion within the domestic market.
- Canadian and United Kingdom Market Trends
- Canadian operations demonstrated the highest relative growth rate among the specified countries, with net sales increasing from 270 million in 2019 to 373 million in 2023, a rise of 38.1%. Conversely, the United Kingdom market exhibited more volatility; sales grew from 692 million in 2019 to a peak of 849 million in 2021, before entering a gradual decline to 769 million by the end of 2023.
- Other International Regions
- Net sales from other regions, net of eliminations, followed a recovery trajectory similar to the total corporate trend. A decline to 1,650 million in 2020 was followed by steady year-over-year increases, reaching 2,277 million in 2023. This segment has grown by 18.6% since 2019, contributing meaningfully to the diversification of the revenue base.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Assets
Motorola Solutions Inc., assets by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | 10,207) | 9,227) | 9,420) | 7,009) | 6,749) |
| United Kingdom | 2,034) | 2,321) | 1,588) | 2,460) | 2,460) |
| Canada | 362) | 394) | 950) | 1,016) | 1,040) |
| Other, net of eliminations | 733) | 872) | 231) | 391) | 393) |
| Total | 13,336) | 12,814) | 12,189) | 10,876) | 10,642) |
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).
Total assets experienced a consistent upward trajectory over the five-year period from 2019 to 2023, increasing from 10,642 million US dollars to 13,336 million US dollars. This growth indicates a steady expansion of the company's resource base, with the most significant annual increase occurring between 2020 and 2021.
- United States Asset Concentration
- The United States represents the primary driver of asset growth. Assets in this region rose from 6,749 million US dollars in 2019 to 10,207 million US dollars in 2023. The proportion of total assets located in the United States increased significantly, reflecting a strategic shift toward greater domestic asset concentration.
- United Kingdom Market Volatility
- Assets in the United Kingdom exhibited notable volatility. After remaining stable at 2,460 million US dollars through 2020, there was a sharp decline to 1,588 million US dollars in 2021. Although a partial recovery occurred in 2022, assets ended the period at 2,034 million US dollars in 2023, remaining below 2019 levels.
- Canadian Asset Contraction
- A sustained downward trend is observed in Canada. Assets decreased from 1,040 million US dollars in 2019 to 362 million US dollars by 2023. The most precipitous drop occurred between 2021 and 2022, where assets fell from 950 million US dollars to 394 million US dollars, indicating a substantial reduction in the regional asset footprint.
- Other Geographic Areas
- The "Other, net of eliminations" category showed fluctuating values, starting at 393 million US dollars in 2019 and ending at 733 million US dollars in 2023. A peak was reached in 2022 at 872 million US dollars, suggesting intermittent investment or reallocation of assets across miscellaneous international regions.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?