Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Motorola Solutions Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28).
The financial data illustrates several key leverage ratios over multiple quarterly periods, revealing the evolution of the company's capital structure and risk profile. The ratios observed include debt to equity, debt to capital, debt to assets, and financial leverage, with some metrics reported both including and excluding operating lease liabilities.
- Debt to Equity
- Starting from the earliest quarters without disclosed values, the ratio recorded a high level in the most recent periods, peaking at 51.84 and then showing a consistent decline to 7.87 by the last quarter. This declining trend indicates a substantial reduction in relative debt compared to equity, suggesting improved equity financing or debt repayment efforts. When operating lease liabilities are included, the ratio follows a similar pattern, albeit slightly higher across all observations.
- Debt to Capital
- The debt to capital ratio remains above 0.89 throughout the periods, with a noticeable decrease from 1.19 in early 2020 to around 0.89 in the latest quarters. This decreasing trend reflects a modest improvement in capital structure stability, though the values remain elevated, implying that a significant portion of capital is still sourced from debt financing. The inclusion of operating leases does not materially alter this ratio, showing limited impact of lease liabilities on the capital base.
- Debt to Assets
- This ratio exhibited a gradual decline from 0.55 in early 2020 to around 0.47 by the most recent quarters, signaling a slight improvement in asset financing with reduced reliance on debt. Included operating lease liabilities increase the ratio marginally but the general downward trend remains. The figures suggest a cautious management of asset financing risk over time.
- Financial Leverage
- Data for financial leverage appears only in the later periods, starting from a very high 110.47 and decreasing to approximately 16.64 by the last recorded quarter. This sharp reduction points to a significant change in the company's leverage policy or financial structure, potentially due to deleveraging actions or increased equity capitalization. Despite this progress, the ratio remains above moderate levels, suggesting that leverage is still a relevant factor in the capital structure.
Overall, the data highlights a consistent trend of deleveraging over the analyzed periods. Key leverage ratios decreased substantially, indicating an ongoing effort to reduce debt dependency and strengthen the equity base. The inclusion of operating lease liabilities slightly elevates the leverage measures but does not alter the overall improving direction. Such a pattern suggests prudent financial management focused on lowering financial risk and enhancing solvency ratios.
Debt Ratios
Debt to Equity
Motorola Solutions Inc., debt to equity calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current portion of long-term debt | 565) | 313) | 1,313) | 1,313) | —) | 1) | 1) | 1) | 2) | 4) | 5) | 6) | 9) | 11) | 12) | 212) | 517) | 814) | ||||||
| Long-term debt, excluding current portion | 5,743) | 5,994) | 4,705) | 4,704) | 6,015) | 6,014) | 6,013) | 6,012) | 6,011) | 5,689) | 5,688) | 5,687) | 5,686) | 5,164) | 5,163) | 5,162) | 5,111) | 5,111) | ||||||
| Total debt | 6,308) | 6,307) | 6,018) | 6,017) | 6,015) | 6,015) | 6,014) | 6,013) | 6,013) | 5,693) | 5,693) | 5,693) | 5,695) | 5,175) | 5,175) | 5,374) | 5,628) | 5,925) | ||||||
| Total Motorola Solutions, Inc. stockholders’ equity (deficit) | 802) | 521) | 724) | 362) | 337) | 234) | 116) | (408) | (443) | (316) | (40) | (263) | (358) | (496) | (558) | (756) | (830) | (948) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to equity1 | 7.87 | 12.11 | 8.31 | 16.62 | 17.85 | 25.71 | 51.84 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| Apple Inc. | 1.41 | 1.46 | 1.79 | 1.81 | 1.76 | 1.96 | 2.37 | 2.06 | 1.78 | 1.71 | 1.98 | 1.89 | 1.76 | 1.69 | — | — | — | — | ||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | ||||||
| Cisco Systems Inc. | 0.25 | 0.17 | 0.19 | 0.20 | 0.21 | 0.22 | 0.24 | 0.23 | 0.29 | 0.22 | 0.28 | 0.29 | 0.37 | 0.38 | — | — | — | — | ||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | 5.36 | 9.04 | 13.39 | 19.36 | 56.47 | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 0.12 | 0.07 | 0.15 | 0.11 | 0.09 | 0.15 | 0.42 | 0.43 | 0.27 | 0.25 | 0.09 | 0.08 | 0.04 | 0.03 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28).
1 Q2 2024 Calculation
Debt to equity = Total debt ÷ Total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 6,308 ÷ 802 = 7.87
2 Click competitor name to see calculations.
The analysis of the financial data over the observed periods reveals several noteworthy trends regarding the company's capital structure and leverage position.
- Total Debt
- The total debt exhibited a general declining trend from the first quarter of 2020 through the end of 2020, decreasing from approximately $5.9 billion to about $5.2 billion. This reduction suggests an active effort toward debt repayment or restructuring during that period. However, from early 2021 onward, the total debt level stabilized around $5.6 billion to $6.0 billion, with a slight upward trend observed toward mid-2024, reaching roughly $6.3 billion. This indicates relatively stable leverage in recent quarters, with a mild increase in debt levels in the latest periods.
- Stockholders’ Equity
- Stockholders’ equity was initially negative and improving from Q1 2020 through end of 2021, moving from -$948 million to near neutral and then into positive territory by the end of 2022. This reflects a strengthening equity base as the company progressed, signaling improved net asset value or retained earnings accumulation. From 2022 onwards, equity continued to rise steadily, reaching $802 million by mid-2024. Such growth in stockholders’ equity is indicative of enhanced financial solidity and potential reinvestment of earnings.
- Debt to Equity Ratio
- The debt to equity ratio, available only from early 2022 onward, shows a significant decline over the observed periods, starting at an exceptionally high level of over 51, and falling to below 8 by mid-2024. This dramatic decrease is mainly driven by the movement of equity from deeply negative values to positive and growing values, alongside relatively stable debt levels. The sharp reduction in leverage ratio highlights a notable improvement in financial leverage and overall balance sheet health. It suggests improved capacity to absorb obligations through equity financing.
In summary, the company has made tangible progress in strengthening its equity position and managing its debt levels. The equity base’s transition from negative to positive aligns with a consistent reduction in the debt to equity ratio, emphasizing improved financial stability. Meanwhile, total debt remains relatively stable but has shown a slight increase recently, warranting monitoring to ensure sustainable leverage going forward. Overall, the financial trends reflect an enhanced capital structure that could positively support future growth and risk management.
Debt to Equity (including Operating Lease Liability)
Motorola Solutions Inc., debt to equity (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28).
1 Q2 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 6,729 ÷ 802 = 8.39
The financial data reveals several key trends in the company's capital structure and leverage over the observed periods.
- Total Debt (Including Operating Lease Liability)
- The total debt level showed a general decreasing trend from March 2020 through April 2021, declining from approximately $6.4 billion to about $5.5 billion. However, starting in mid-2021, the debt balance stabilized around the $6 billion mark with some fluctuations, peaking around $6.4 billion at the end of 2022 and early 2023 before slightly rising to around $6.7 billion by mid-2024.
- Total Stockholders’ Equity (Deficit)
- The equity position began with a deficit near -$950 million in early 2020, improving steadily over the quarters. By the end of 2021, the deficit had narrowed significantly to near zero, turning positive from late 2022 onwards. This positive trend continued through 2023 and into 2024, culminating in a stockholders’ equity value fluctuating between approximately $500 million and $800 million in recent quarters. This improvement indicates a strengthening equity base over time.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt to equity ratio was not reported during the initial periods but became available starting at the first quarter of 2023. It showed a strong downward trend, decreasing from an extremely high level of approximately 55.46 to around 8.39 by mid-2024. This decline reflects the material improvement in equity relative to debt, signaling a reduction in financial leverage and potentially an enhanced solvency profile.
Overall, the company reduced its negative equity position significantly and maintained a relatively stable debt level. The marked improvement in equity combined with steady debt has resulted in a substantial decline in leverage ratios, suggesting progress in financial health and balance sheet strengthening over the reported timeframe.
Debt to Capital
Motorola Solutions Inc., debt to capital calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current portion of long-term debt | 565) | 313) | 1,313) | 1,313) | —) | 1) | 1) | 1) | 2) | 4) | 5) | 6) | 9) | 11) | 12) | 212) | 517) | 814) | ||||||
| Long-term debt, excluding current portion | 5,743) | 5,994) | 4,705) | 4,704) | 6,015) | 6,014) | 6,013) | 6,012) | 6,011) | 5,689) | 5,688) | 5,687) | 5,686) | 5,164) | 5,163) | 5,162) | 5,111) | 5,111) | ||||||
| Total debt | 6,308) | 6,307) | 6,018) | 6,017) | 6,015) | 6,015) | 6,014) | 6,013) | 6,013) | 5,693) | 5,693) | 5,693) | 5,695) | 5,175) | 5,175) | 5,374) | 5,628) | 5,925) | ||||||
| Total Motorola Solutions, Inc. stockholders’ equity (deficit) | 802) | 521) | 724) | 362) | 337) | 234) | 116) | (408) | (443) | (316) | (40) | (263) | (358) | (496) | (558) | (756) | (830) | (948) | ||||||
| Total capital | 7,110) | 6,828) | 6,742) | 6,379) | 6,352) | 6,249) | 6,130) | 5,605) | 5,570) | 5,377) | 5,653) | 5,430) | 5,337) | 4,679) | 4,617) | 4,618) | 4,798) | 4,977) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to capital1 | 0.89 | 0.92 | 0.89 | 0.94 | 0.95 | 0.96 | 0.98 | 1.07 | 1.08 | 1.06 | 1.01 | 1.05 | 1.07 | 1.11 | 1.12 | 1.16 | 1.17 | 1.19 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| Apple Inc. | 0.59 | 0.59 | 0.64 | 0.64 | 0.64 | 0.66 | 0.70 | 0.67 | 0.64 | 0.63 | 0.66 | 0.65 | 0.64 | 0.63 | — | — | — | — | ||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | ||||||
| Cisco Systems Inc. | 0.20 | 0.14 | 0.16 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.23 | 0.18 | 0.22 | 0.22 | 0.27 | 0.28 | — | — | — | — | ||||||
| Dell Technologies Inc. | 1.11 | 1.12 | 1.12 | 1.15 | 1.12 | 1.10 | 1.07 | 0.84 | 0.90 | 0.93 | 0.95 | 0.98 | 1.01 | 1.03 | — | — | — | — | ||||||
| Super Micro Computer Inc. | 0.11 | 0.06 | 0.13 | 0.10 | 0.09 | 0.13 | 0.30 | 0.30 | 0.21 | 0.20 | 0.08 | 0.07 | 0.04 | 0.03 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28).
1 Q2 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 6,308 ÷ 7,110 = 0.89
2 Click competitor name to see calculations.
The analysis of the financial leverage metrics over multiple quarters reveals several distinct trends. The total debt figure exhibited a general decline from the first quarter of 2020 through the end of 2020, decreasing from $5,925 million to $5,175 million. However, starting in early 2021, debt levels stabilized around the $5,693 million mark for most of the year and then experienced a moderate uptick beginning in early 2024, reaching approximately $6,308 million by the second quarter of 2024.
In contrast, total capital experienced a downward trajectory from around $4,977 million in the first quarter of 2020 to a low of approximately $4,617 million by the end of 2020. This was followed by a steady and significant increase beginning in early 2021, reaching over $7,000 million by the middle of 2024, reflecting an overall strengthening of the capital base.
The debt-to-capital ratio followed a generally improving trend throughout the period under review. Initially, the ratio was above 1.0, indicating that debt exceeded total capital, with values declining from 1.19 in early 2020 to just below 1.0 by the end of 2022. This downward trend continued into 2023 and 2024, with the ratio reaching approximately 0.89 by mid-2024. The movement below 1.0 implies that total capital has grown proportionally faster than debt, indicating an improvement in financial leverage and potentially a stronger coverage of debt by capital resources.
Overall, the data suggests a strategic reduction in leverage and enhancement of capital over the analyzed quarters, with a more disciplined balance sheet structure emerging over time. The recent slight increase in debt in early 2024, however, warrants monitoring to assess its impact on future financial leverage ratios and capital adequacy.
Debt to Capital (including Operating Lease Liability)
Motorola Solutions Inc., debt to capital (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28).
1 Q2 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 6,729 ÷ 7,531 = 0.89
The analysis of the financial leverage metrics over the observed quarters reveals notable trends in the company's capital structure and debt management.
- Total Debt (Including Operating Lease Liability)
- The total debt value shows a general decline from the outset, starting at approximately $6.4 billion in late March 2020 and reaching a low near $5.5 billion by late 2020. Following this period, the debt level fluctuates slightly but remains relatively stable through 2021 and 2022, oscillating around $6.0 to $6.4 billion. In 2023, the debt shows minor decreases and increases, ending near $6.7 billion in mid-2024. Overall, despite some quarterly volatility, the debt has not materially increased beyond early 2020 levels, indicating controlled debt management.
- Total Capital (Including Operating Lease Liability)
- Total capital starts at about $5.4 billion in early 2020 and initially decreases slightly by the end of that year to just over $5.0 billion. From early 2021 onward, capital demonstrates a consistent upward trajectory, increasing steadily through 2022 and reaching approximately $7.5 billion by mid-2024. This upward trend suggests strengthening financial resources, possibly through retained earnings, equity issuance, or other capital inflows, contributing to a more robust capital base over time.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio starts quite elevated, above 1.10 in early 2020, indicating that debt exceeds total capital at that point. Throughout 2020 and into early 2021, this ratio declines steadily, moving below 1.0 during late 2021 and remaining under that threshold thereafter. By mid-2024, the ratio approaches 0.89, signaling a significant reduction in relative debt levels compared to capital. This decline points toward improved capital structure robustness, with decreasing reliance on debt financing relative to the company’s capital base.
In summary, the data reveals that the company has effectively reduced its leverage over the observed period, strengthening its capital base while maintaining relatively constant absolute debt levels. The resulting marked decrease in the debt to capital ratio indicates enhanced financial stability and potentially lower financial risk going forward.
Debt to Assets
Motorola Solutions Inc., debt to assets calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current portion of long-term debt | 565) | 313) | 1,313) | 1,313) | —) | 1) | 1) | 1) | 2) | 4) | 5) | 6) | 9) | 11) | 12) | 212) | 517) | 814) | ||||||
| Long-term debt, excluding current portion | 5,743) | 5,994) | 4,705) | 4,704) | 6,015) | 6,014) | 6,013) | 6,012) | 6,011) | 5,689) | 5,688) | 5,687) | 5,686) | 5,164) | 5,163) | 5,162) | 5,111) | 5,111) | ||||||
| Total debt | 6,308) | 6,307) | 6,018) | 6,017) | 6,015) | 6,015) | 6,014) | 6,013) | 6,013) | 5,693) | 5,693) | 5,693) | 5,695) | 5,175) | 5,175) | 5,374) | 5,628) | 5,925) | ||||||
| Total assets | 13,345) | 13,326) | 13,336) | 12,436) | 12,252) | 12,353) | 12,814) | 11,625) | 11,672) | 11,649) | 12,189) | 11,422) | 11,131) | 10,423) | 10,876) | 10,361) | 10,374) | 10,716) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Debt to assets1 | 0.47 | 0.47 | 0.45 | 0.48 | 0.49 | 0.49 | 0.47 | 0.52 | 0.52 | 0.49 | 0.47 | 0.50 | 0.51 | 0.50 | 0.48 | 0.52 | 0.54 | 0.55 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| Apple Inc. | 0.31 | 0.31 | 0.32 | 0.33 | 0.33 | 0.32 | 0.34 | 0.36 | 0.34 | 0.32 | 0.36 | 0.37 | 0.36 | 0.32 | — | — | — | — | ||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | ||||||
| Cisco Systems Inc. | 0.11 | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.12 | 0.10 | 0.12 | 0.12 | 0.15 | 0.15 | — | — | — | — | ||||||
| Dell Technologies Inc. | 0.32 | 0.34 | 0.33 | 0.32 | 0.30 | 0.31 | 0.29 | 0.35 | 0.36 | 0.38 | 0.39 | 0.42 | 0.44 | 0.47 | — | — | — | — | ||||||
| Super Micro Computer Inc. | 0.07 | 0.04 | 0.08 | 0.06 | 0.06 | 0.08 | 0.19 | 0.18 | 0.12 | 0.11 | 0.04 | 0.04 | 0.02 | 0.02 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28).
1 Q2 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 6,308 ÷ 13,345 = 0.47
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends regarding the company's debt and asset management over the reported periods.
- Total Debt
- The total debt experienced a general decline from March 2020 to December 2020, decreasing from 5,925 million USD to 5,175 million USD. This downward trend reversed beginning in April 2021, with debt levels increasing steadily and stabilizing around 6,000 million USD through 2022 and early 2023. From March 2024 onward, there is a noticeable uptick, with debt reaching approximately 6,308 million USD by June 2024.
- Total Assets
- Total assets fluctuated over the periods but showed an overall upward trajectory. After a slight decrease through mid-2020, assets began to increase significantly, peaking intermittently around 13,336 million USD in March 2024. While there were some short-term declines, notably between late 2021 and early 2022, the general trend indicates expansion in asset base over the analyzed timeframe.
- Debt to Assets Ratio
- The ratio of debt to assets demonstrated a gradual improvement from March 2020 (0.55) to December 2020 (0.48), suggesting stronger balance sheet leverage. Subsequently, the ratio fluctuated narrowly between approximately 0.45 and 0.52. This indicates relative stability in the company's financial leverage with a slight improvement in more recent periods, as observed by the ratio declining to about 0.47 by June 2024. This trend reflects a controlled increase in debt relative to asset growth.
Overall, the company has progressively managed to increase its asset base while maintaining a fairly stable debt position, resulting in a modest improvement in leverage ratios. The recent increase in total debt alongside growing assets warrants monitoring to ensure continued balance sheet strength.
Debt to Assets (including Operating Lease Liability)
Motorola Solutions Inc., debt to assets (including operating lease liability) calculation (quarterly data)
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28).
1 Q2 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 6,729 ÷ 13,345 = 0.50
The analysis of the quarterly financial data reveals several notable trends in the company's financial position over the observed periods.
- Total Debt (Including Operating Lease Liability)
-
Total debt exhibited a general declining trend from March 2020 through December 2020, decreasing from approximately $6.4 billion to around $5.6 billion. This decline was followed by a period of relative stabilization with slight fluctuations between early 2021 and mid-2023, predominantly hovering close to the $6.4 billion mark. However, during the last few quarters from March 2024 to June 2024, total debt increased again, reaching levels near $6.7 billion, indicating a recent uptick in the company's leverage obligations.
- Total Assets
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Total assets displayed an overall upward trajectory across the entirety of the timeline. Beginning near $10.7 billion in March 2020, total assets experienced some intermediate fluctuations but generally increased, peaking above $13.3 billion by December 2023 and maintaining this elevated level through June 2024. This growth in asset base indicates ongoing expansion or acquisition activity, contributing to the strengthening of the company's asset portfolio.
- Debt to Assets Ratio (Including Operating Lease Liability)
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The debt to assets ratio demonstrated a consistent decline from 0.60 in March 2020 to approximately 0.49 by December 2021, reflecting an improvement in the company’s leverage position relative to its asset base. Despite some minor fluctuations from 2022 onward, the ratio generally stabilized between 0.50 and 0.54, suggesting maintained balance between debt levels and asset size. Most recently, the ratio showed a slight decrease again toward 0.50 by mid-2024, indicating a relatively stable leverage posture even with the recent increase in total debt, likely supported by the increased asset base.
In summary, the company managed to reduce its leverage ratio notably during the initial phase of this period while simultaneously growing its total assets significantly. Despite some increases in total debt in the latest quarters, the overall debt to assets ratio remained stable, suggesting effective management of financial risk through asset growth. These trends suggest a strategic focus on strengthening the balance sheet and maintaining sustainable leverage levels.
Financial Leverage
Motorola Solutions Inc., financial leverage calculation (quarterly data)
| Jun 29, 2024 | Mar 30, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Oct 1, 2022 | Jul 2, 2022 | Apr 2, 2022 | Dec 31, 2021 | Oct 2, 2021 | Jul 3, 2021 | Apr 3, 2021 | Dec 31, 2020 | Sep 26, 2020 | Jun 27, 2020 | Mar 28, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Total assets | 13,345) | 13,326) | 13,336) | 12,436) | 12,252) | 12,353) | 12,814) | 11,625) | 11,672) | 11,649) | 12,189) | 11,422) | 11,131) | 10,423) | 10,876) | 10,361) | 10,374) | 10,716) | ||||||
| Total Motorola Solutions, Inc. stockholders’ equity (deficit) | 802) | 521) | 724) | 362) | 337) | 234) | 116) | (408) | (443) | (316) | (40) | (263) | (358) | (496) | (558) | (756) | (830) | (948) | ||||||
| Solvency Ratio | ||||||||||||||||||||||||
| Financial leverage1 | 16.64 | 25.58 | 18.42 | 34.35 | 36.36 | 52.79 | 110.47 | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| Apple Inc. | 4.55 | 4.77 | 5.67 | 5.56 | 5.34 | 6.11 | 6.96 | 5.79 | 5.20 | 5.30 | 5.56 | 5.13 | 4.87 | 5.35 | — | — | — | — | ||||||
| Arista Networks Inc. | 1.38 | 1.34 | 1.38 | 1.39 | 1.40 | 1.42 | 1.39 | 1.41 | 1.45 | 1.47 | 1.44 | 1.41 | 1.41 | 1.42 | — | — | — | — | ||||||
| Cisco Systems Inc. | 2.19 | 2.18 | 2.30 | 2.31 | 2.31 | 2.31 | 2.36 | 2.30 | 2.39 | 2.25 | 2.36 | 2.34 | 2.44 | 2.49 | — | — | — | — | ||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | 15.15 | 25.43 | 34.92 | 49.78 | 134.71 | — | — | — | — | — | — | ||||||
| Super Micro Computer Inc. | 1.76 | 1.89 | 1.86 | 1.81 | 1.69 | 2.03 | 2.25 | 2.41 | 2.26 | 2.14 | 2.05 | 1.90 | 1.78 | 1.69 | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28).
1 Q2 2024 Calculation
Financial leverage = Total assets ÷ Total Motorola Solutions, Inc. stockholders’ equity (deficit)
= 13,345 ÷ 802 = 16.64
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends concerning the company's assets, equity, and financial leverage over recent periods.
- Total Assets
- Total assets exhibited mild fluctuations over the span of the reported quarters. Initially, assets declined slightly from 10,716 million USD in the earliest quarter to around 10,361 million USD a few quarters later. Subsequently, the asset base increased steadily, reaching a peak of 13,336 million USD by the quarter ending December 31, 2023, and stabilizing slightly around 13,326 to 13,345 million USD in the following quarters. This upward trajectory in total assets indicates a gradual expansion or accumulation of resources over the latter part of the timeline.
- Total Stockholders’ Equity
- The stockholders' equity demonstrated marked improvement across the periods analyzed. Starting with a significant negative equity position of -948 million USD, there was a consistent trend toward reduction of this deficit. Notably, by the quarter ending December 31, 2022, the equity position turned positive, recorded at 116 million USD. From that point onward, equity increased further, doubling to 234 million USD and maintaining a generally positive trajectory, reaching up to 802 million USD by the latest quarter. This positive shift from negative to positive shareholders’ equity signifies a strengthening financial position and improved net asset value attributable to stockholders.
- Financial Leverage
- The financial leverage ratio values provided were only available beginning in early 2022. These values display a significant and consistent decline over subsequent quarters. Starting at an exceptionally high level of 110.47, the leverage ratio dropped to 16.64 in the most recent quarter. This pronounced decrease points to a substantial reduction in the company's reliance on debt relative to equity. Such a decline in leverage ratio generally suggests enhanced solvency and reduced financial risk.
Overall, the company’s financial position appears to have strengthened over the periods in question. The asset base grew moderately, while the equity deficit was reversed and transformed into a positive equity balance, accompanied by a marked reduction in financial leverage. These developments collectively indicate improved capitalization, greater financial stability, and potentially lower risk for shareholders and creditors.