Gross Margin % is calculated as gross profit divided by its revenue. Motorola Solutions's Gross Profit for the
three
months ended in Dec. 2023 was $1,455 Mil. Motorola Solutions's Revenue for the
three
months ended in Dec. 2023 was $2,849 Mil. Therefore, Motorola Solutions's Gross Margin % for the quarter that ended in Dec. 2023 was 51.07%.
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: 49.84
Current: 49.81
During the past 13 years, the highestGross Margin % of Motorola Solutions was 49.84%. The lowest was 46.41%. And the median was 47.94%.
MSI's Gross Margin % is ranked better than 88.39% of 2438
companies
in the Hardware industry
Industry Median: 24.405
vs MSI: 49.81
Motorola Solutions had a gross margin of 51.07% for the quarter that ended in Dec. 2023 => 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.
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 Gross Margin % Distribution
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.
* 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.
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 51.07% for the quarter that ended in Dec. 2023 => 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 (Motorola Solutions) Business Description
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.
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