Can Motorola Solutions’ EBITDA Growth Outpace Its Revenues?

• It is unlikely that Motorola Solutions’s EBITDA will grow faster than revenues going forward since its cost of sales and R&D expenses are likely to increase at a relatively faster rate
• Cost of sales may increase relative to revenues due to pricing pressure resulting from rising competition from Harris, Airbus, Kenwood and others, as well as general government budget cuts in the wake of economic uncertainty
• R&D expenses are likely to increase relative to revenues in the near term since the company is pouring in resources for software innovation, the benefits of which will come at a later stage
• SG&A costs are likely to remain under control, but that will likely not be enough to boost Motorola’s EBITDA growth

Have more questions about Motorola Solutions See the links below:

Notes:

• What’s Motorola Solutions’ Revenue And Net Income Breakdown In Terms Of Different Operating Segments?
• How Has Motorola’s Revenue & Cash Profit Composition Changed In The Last Four Years?
• By How Much Have Motorola Solutions’ Revenue and EBITDA Increased In The Last Five Years?

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