F

Motorola Solutions, Inc. — Earnings Quality Grade F

MSI · Technology

Major red flags

Revenue
$11.7B
2025
Net Income
$2.2B
2025
Gross Margin
51.7%
Free Cash Flow
$2.6B
01

Screening Summary

12
Passed
3
Watch
3
Failed
-2.43
M-Score

Management Signals

View all →
Routine2026-03-12
Motorola Solutions · directorAppointment
Standard appointment
SEC
Watch2025-11-18
Motorola Solutions · chief executive officerAppointment
CEO appointment at Grade F company
SEC
View management analysis in MSI deep report →

Source: SEC EDGAR 8-K Item 5.02, with exhibit links when available

02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 69 days, change +3 days YoY

A2AR vs Revenue Growth

AR outpaced revenue for 2 consecutive years

A3Revenue vs CFFO

Revenue 8.0%, CFFO 18.7%. Cash follows revenue

02

Expense Quality

!
B1Inventory vs COGS

Inventory growth 28.3% exceeds COGS 6.4%

B2CapEx vs Revenue

CapEx growth 3.1% vs revenue 8.0%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 31.0%. Normal

B4Gross Margin

Gross margin 51.7%, change +0.7pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.32. Profits backed by cash

C2Free Cash Flow

FCF $2.6B, FCF/NI = 1.19

C3Accruals Ratio

Accruals ratio = -3.5%. Low accruals

C4Cash vs Debt

Cash $1.2B covers only 12% of debt $9.8B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $9.9B = 411% of equity. Over 50%

D2Leverage

Debt/EBITDA = 2.7x. Healthy

!
D3Soft Asset Growth

Other assets grew 67.7% vs revenue 8.0%

D4Asset Impairment

Write-offs normal

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

!
E2Goodwill Surge

Goodwill+Intangibles surged 107% YoY

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.43 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.43
-4.0 Clean-2.22 Grey-1.78 Danger0
1.044
DSRI
AR growing faster than revenue?
0.986
GMI
Gross margin declining?
1.301
AQI
Asset quality deteriorating?
1.08
SGI
Revenue growth rate
0.91
DEPI
Depreciation slowing?
0.988
SGAI
SG&A ratio changing?
-0.0352
TATA
Accruals level
1.017
LVGI
Leverage increasing?
05

Altman Z-Score

1.75
Grey Zone
0 Distress1.102.605.0+ Safe
0.0114
Liquidity
0.1315
Cumulative profit
0.1636
Operating efficiency
0.1421
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25

Latest Quarterly Check

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Across the last 5–6 quarters, MSI tripped 1 red flag.

  • Q5 · Inv > RevInv YoY +41.8% vs Rev YoY +7.4%

Updated 2026-05-19