Can Motorola Operate More Efficiently Going Forward?

-4.11%
Downside
355
Market
340
Trefis
MSI: Motorola Solutions logo
MSI
Motorola Solutions

  • In 2014, for every dollar spent in operating expenses (SG&A adjusted for D&A and share based compensation), Motorola Solutions generated $6.46 in revenue
  • With cost-cutting initiatives, employee layoffs and sale of the extra land at Schaumburg facility, the company lowered its expenses in 2015, without compromising operating efficiency
  • Subsequently, revenue generated for every dollar spent on operating activities improved to $7.17 in 2015
  • We expect this increase to continue in the future as Motorola maintains strong control over its expenses and grows its revenues by leveraging new contracts and order backlog
  • By 2018, we estimate that the company’s revenue per dollar of operating expenses to increase by 15%, when compared to 2014

MSI operating efficiency

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Motorola Solutions
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