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Motorolla Accounting

In: Business and Management

Submitted By ghostwriter777
Words 5314
Pages 22
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Financial Analysis

TABLE OF CONTENTS

EXECUTIVE SUMMARY 3
INTRODUCTION 4
I. Liquidity Ratios 4
A. Working Capital 4
B. Current Ratio 5
C. Acid Test Ratio 5
D. Inventory Turnover Ratio 6
E. Days in Inventory 6
F. Receivables Turnover Ratio 7
G. Average Collection Period 8
II. Solvency Ratios 8
A. Debt to Assets Ratio 8
B. Times Interest Earned 9
III. Profitability 9
A. Earnings Per Share 9
B. Gross Profit Rate 10
C. Profit Margin Ratio 10
D. Return on Assets Ratio 11
E. Asset Turnover Ratio 11
REFERENCES 12

EXECUTIVE SUMMARY
The succeeding report provides an analysis and assessment of the current and prospective profitability, liquidity and financial stability of Motorola Solutions. Methods of analysis (which can all be reviewed in the appendices) include a series of financial ratios comprising of Current Ratio, Acid Test Ratio, Inventory Turnover Ratio, Days in Inventory, Receivables Turnover Ratio, Debt to Total Assets Ratio, Times Earned Interest Ratio, Profit Margin Ratio, Return on Assets Ratio, and the Asset Turnover Ratio. Other calculations include Working Capital, Average Collection Period, Earnings per Share, and Gross Profit Rate. This enquiry will not only explore the fiscal performance of Motorola Solutions for the subsequent three years, but will also include a comparison of a principal competitor, Harris Corporation, to further consider Motorola Solution’s current standing in the industry. The objective of this financial analysis is to consider the value and viability of Motorola Solutions for potential investors.
Liquidity Ratios
To consider Motorola Solutions’ financial position, we begin with examining its ability and efficiency to meet its short-term

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