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MSI (Motorola Solutions) Debt-to-EBITDA : 2.28 (As of Jun. 2024)


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What is Motorola Solutions Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Motorola Solutions's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $689 Mil. Motorola Solutions's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was $6,164 Mil. Motorola Solutions's annualized EBITDA for the quarter that ended in Jun. 2024 was $3,000 Mil. Motorola Solutions's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was 2.28.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Motorola Solutions's Debt-to-EBITDA or its related term are showing as below:

MSI' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -4.04   Med: 3.06   Max: 3.52
Current: 2.84

During the past 13 years, the highest Debt-to-EBITDA Ratio of Motorola Solutions was 3.52. The lowest was -4.04. And the median was 3.06.

MSI's Debt-to-EBITDA is ranked worse than
63.8% of 1732 companies
in the Hardware industry
Industry Median: 1.885 vs MSI: 2.84

Motorola Solutions Debt-to-EBITDA Historical Data

The historical data trend for Motorola Solutions's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Motorola Solutions Debt-to-EBITDA Chart

Motorola Solutions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.52 3.14 2.78 2.99 2.38

Motorola Solutions Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.56 2.22 1.87 31.83 2.28

Competitive Comparison of Motorola Solutions's Debt-to-EBITDA

For the Communication Equipment subindustry, Motorola Solutions's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Motorola Solutions's Debt-to-EBITDA Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Motorola Solutions's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Motorola Solutions's Debt-to-EBITDA falls into.



Motorola Solutions Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Motorola Solutions's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1438 + 5112) / 2751
=2.38

Motorola Solutions's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(689 + 6164) / 3000
=2.28

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jun. 2024) EBITDA data.


Motorola Solutions  (NYSE:MSI) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Motorola Solutions Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Motorola Solutions's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Motorola Solutions Business Description

Address
500 West Monroe Street, Suite 4400, Chicago, IL, USA, 60661
Motorola Solutions is a leading provider of communications and analytics, primarily serving public safety departments as well as schools, hospitals, and businesses. The bulk of the firm's revenue comes from sales of land mobile radios and radio network infrastructure, but the firm also sells surveillance equipment and dispatch software. Most of Motorola's revenue comes from government agencies, while roughly 25% comes from schools and private businesses. Motorola has customers in over 100 countries and in every state in the United States.
Executives
Cynthia Yazdi officer: SVP, Communications & Brand 500 WEST MONROE STREET, CHICAGO IL 60661
Gregory Q Brown director, officer: Chairman and CEO 500 WEST MONROE ST., CHICAGO IL 60661
Jason J Winkler officer: EVP and CFO 500 WEST MONROE STREET, CHICAGO IL 60661
James A Niewiara officer: SVP, GENERAL COUNSEL MOTOROLA SOLUTIONS, INC., 500 WEST MONROE ST., CHICAGO IL 60661
John P Molloy officer: EVP and COO 500 WEST MONROE ST., CHICAGO IL 60661
Rajan Naik officer: SVP, Strategy & Ventures 500 WEST MONROE STREET, CHICAGO IL 60661
Kenneth D Denman director
Karen E Dunning officer: SVP, Human Resources MOTOROLA SOLUTIONS, INC., 500 WEST MONROE ST., CHICAGO IL 60661
Katherine A Maher officer: CVP and CAO 500 WEST MONROE ST., CHICAGO IL 60661
Mark S. Hacker officer: EVP, GC & Chief Admin Officer 500 WEST MONROE ST., CHICAGO IL 60661
Joseph M Tucci director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Clayton M Jones director 400 COLLINS ROAD NE, CEDAR RAPIDS IA 52498
Judy C Lewent director PO BOX 100, WHITEHOUSE STATION NJ 08889
Ayanna Howard director 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Mahesh Saptharishi officer: EVP and CTO 500 WEST MONROE ST., CHICAGO IL 60661