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MSI (Motorola Solutions) Interest Coverage : 7.51 (As of Jun. 2024)


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What is Motorola Solutions Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Motorola Solutions's Operating Income for the three months ended in Jun. 2024 was $653 Mil. Motorola Solutions's Interest Expense for the three months ended in Jun. 2024 was $-87 Mil. Motorola Solutions's interest coverage for the quarter that ended in Jun. 2024 was 7.51. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Motorola Solutions's Interest Coverage or its related term are showing as below:

MSI' s Interest Coverage Range Over the Past 10 Years
Min: 5.15   Med: 6.31   Max: 9.47
Current: 9.13


MSI's Interest Coverage is ranked worse than
57.24% of 1595 companies
in the Hardware industry
Industry Median: 12.77 vs MSI: 9.13

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Motorola Solutions Interest Coverage Historical Data

The historical data trend for Motorola Solutions's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Motorola Solutions Interest Coverage Chart

Motorola Solutions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.89 6.07 7.99 7.26 9.47

Motorola Solutions Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage 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 8.35 12.19 9.11 8.82 7.51

Competitive Comparison of Motorola Solutions's Interest Coverage

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

For the Hardware industry and Technology sector, Motorola Solutions's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Motorola Solutions's Interest Coverage falls into.



Motorola Solutions Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Dec. 2023, Motorola Solutions's Interest Expense was $-249 Mil. Its Operating Income was $2,359 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,112 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*2359/-249
=9.47

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

Here, for the three months ended in Jun. 2024, Motorola Solutions's Interest Expense was $-87 Mil. Its Operating Income was $653 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,164 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*653/-87
=7.51

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Motorola Solutions  (NYSE:MSI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Motorola Solutions Interest Coverage Related Terms

Thank you for viewing the detailed overview of Motorola Solutions's Interest Coverage 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