Is Motorola Solutions Pooling Its Resources Into R&D Effectively?
Motorola Solutions’ investments in research and development (R&D) are aimed at developing new products, systems and processes to trigger future growth and help stay on par with or better than the competition. In addition, part of that investment goes towards developing effective public safety network installation and deployment techniques so as to minimize the cost of sales and maximize gross profits. Considering this, the efficiency of Motorola’s R&D can be gauged by gross profit dollars (since it incorporates cost of sales) generated per dollar spent on R&D.
The chart above indicates that the company’s R&D efficiency has increased over the past few years as investments in R&D reaped benefits. However, we expect Motorola’s R&D efficiency to experience some pressure going forward as the company plans to invest a significant portion of the $2 billion Silver Lake investment into product innovation and technological advancements. And the positive impact of these investments on Motorola’s revenues and gross profits is unlikely to be immediate.
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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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