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MSI (Motorola Solutions) Gross Margin % : 50.95% (As of Jun. 2024)


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What is Motorola Solutions Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Motorola Solutions's Gross Profit for the three months ended in Jun. 2024 was $1,339 Mil. Motorola Solutions's Revenue for the three months ended in Jun. 2024 was $2,628 Mil. Therefore, Motorola Solutions's Gross Margin % for the quarter that ended in Jun. 2024 was 50.95%.


The historical rank and industry rank for Motorola Solutions's Gross Margin % or its related term are showing as below:

MSI' s Gross Margin % Range Over the Past 10 Years
Min: 46.41   Med: 47.94   Max: 50.53
Current: 50.53


During the past 13 years, the highest Gross Margin % of Motorola Solutions was 50.53%. The lowest was 46.41%. And the median was 47.94%.

MSI's Gross Margin % is ranked better than
88.03% of 2422 companies
in the Hardware industry
Industry Median: 24.725 vs MSI: 50.53

Motorola Solutions had a gross margin of 50.95% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Motorola Solutions was 0.20% per year.


Motorola Solutions Gross Margin % Historical Data

The historical data trend for Motorola Solutions's Gross Margin % 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 Gross Margin % Chart

Motorola Solutions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.84 48.66 49.44 46.41 49.81

Motorola Solutions Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Gross Margin % 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 49.48 50.08 51.07 49.90 50.95

Competitive Comparison of Motorola Solutions's Gross Margin %

For the Communication Equipment subindustry, Motorola Solutions's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Motorola Solutions's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Motorola Solutions's Gross Margin % falls into.



Motorola Solutions Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Motorola Solutions's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=4970 / 9978
=(Revenue - Cost of Goods Sold) / Revenue
=(9978 - 5008) / 9978
=49.81 %

Motorola Solutions's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=1339 / 2628
=(Revenue - Cost of Goods Sold) / Revenue
=(2628 - 1289) / 2628
=50.95 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Motorola Solutions  (NYSE:MSI) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Motorola Solutions had a gross margin of 50.95% for the quarter that ended in Jun. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Motorola Solutions Gross Margin % Related Terms

Thank you for viewing the detailed overview of Motorola Solutions's Gross Margin % 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