Motorola Solutions Inc. (NYSE:MSI)

Net Earnings Attributable to Motorola Solutions, Inc.

The net earnings demonstrated a consistent upward trend over the five-year period. Starting at $868 million in 2019, earnings increased each year, reaching $1,709 million in 2023. This represents a near doubling of net earnings, indicating strong profitability growth.

Earnings Before Tax (EBT)

The earnings before tax showed significant improvement, rising from $1,001 million in 2019 to $2,146 million in 2023. While EBT steadily increased from 2019 to 2021, a slight dip occurred in 2022, followed by a notable rebound in 2023. Overall, the growth trajectory suggests effective management of tax and operational elements impacting pre-tax profit.

Earnings Before Interest and Tax (EBIT)

EBIT showed continuous growth with minor fluctuations, increasing from $1,238 million in 2019 to $2,395 million in 2023. The values in 2021 and 2022 were relatively stable, but a substantial increase in 2023 contributed to a strong upward trend. This indicates enhanced operating efficiency and possibly expanded operating margins.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)

EBITDA increased from $1,632 million in 2019 to $2,751 million in 2023, reflecting overall strong operational performance. The trend is predominantly positive, though the growth rate plateaued slightly between 2021 and 2022 before accelerating again in 2023. The growth in EBITDA outpaced EBIT growth, suggesting stable or possibly improving depreciation and amortization expenses relative to earnings.

Overall Financial Performance Trends

Across all key earnings metrics, the company exhibited solid financial growth from 2019 through 2023. The consistent increase in net earnings, EBT, EBIT, and EBITDA suggests robust operational execution and profitability enhancement. Temporary stabilization or minor declines during 2022 in some metrics indicate manageable short-term challenges but were quickly overcome by strong financial results in 2023, leading to a peak in reported earnings figures.

Over the observed five-year period, several notable trends emerge in the financial metrics. The enterprise value (EV) displays a consistent upward trajectory, increasing from US$35,601 million in 2019 to US$58,138 million by the end of 2023. This reflects a significant appreciation in the company's market valuation over time.

Correspondingly, the earnings before interest, tax, depreciation, and amortization (EBITDA) also demonstrate an overall positive growth trend. Beginning at US$1,632 million in 2019, EBITDA rises steadily, reaching US$2,751 million in 2023. A slight dip is observed between 2021 and 2022, where EBITDA decreases marginally from US$2,205 million to US$2,195 million, but this is followed by a strong recovery in 2023.

The EV to EBITDA ratio, a valuation multiple commonly used to assess company value relative to earnings, exhibits some fluctuations. It decreases from 21.81 in 2019 to a low of 18.6 in 2021, indicating an improving valuation relative to earnings during that period. However, it subsequently rises to 22.51 in 2022 before falling slightly to 21.13 in 2023. These changes suggest varying investor sentiment or shifts in earnings quality relative to market value during these years.

Enterprise Value (EV)

Consistent growth over five years, increasing by approximately 63% from 2019 to 2023.

EBITDA

Steady growth with a minor decline between 2021 and 2022, followed by a rebound in 2023, amounting to a total increase of about 69% across the period.

EV/EBITDA Ratio

Fluctuates between 18.6 and 22.51, with a tendency to decrease initially, then increase and partly normalize, suggesting changing market valuation levels in relation to earnings.

In summary, the company shows strong value creation trends supported by rising enterprise value and improving earnings before interest, tax, depreciation, and amortization. The EV/EBITDA ratio indicates that while valuation multiples have varied, they remain within a relatively stable range, reflecting balanced market perceptions over the timeframe analyzed.