Motorola Solutions, Inc. — Earnings Quality Grade F
MSI · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 69 days, change +3 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 8.0%, CFFO 18.7%. Cash follows revenue
Expense Quality
Inventory growth 28.3% exceeds COGS 6.4%
CapEx growth 3.1% vs revenue 8.0%. Normal
SG&A/Gross Profit = 31.0%. Normal
Gross margin 51.7%, change +0.7pp. Stable
Cash Flow Quality
CFFO/NI = 1.32. Profits backed by cash
FCF $2.6B, FCF/NI = 1.19
Accruals ratio = -3.5%. Low accruals
Cash $1.2B covers only 12% of debt $9.8B
Balance Sheet Health
Goodwill+Intangibles $9.9B = 411% of equity. Over 50%
Debt/EBITDA = 2.7x. Healthy
Other assets grew 67.7% vs revenue 8.0%
Write-offs normal
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles surged 107% YoY
Manipulation Score
M-Score = -2.43 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10