Solventum Corp. (SOLV)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	8,241,000	8,130,000	8,171,000	7,281,000
Total assets	US$ in thousands	14,377,000	13,594,000	14,075,000	—
Total asset turnover		0.57	0.60	0.58	—

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $8,241,000K ÷ $14,377,000K
= 0.57

Solventum Corp.'s total asset turnover has exhibited a declining trend over the past three years, with values of 0.57 in 2023, 0.60 in 2022, and 0.58 in 2021. This ratio indicates that, on average, the company generates 0.57 to 0.60 units of revenue for every dollar invested in total assets. The decreasing trend suggests that the company may be less efficient in utilizing its assets to generate sales in recent years. Further analysis is warranted to understand the factors contributing to this trend and to identify potential strategies for improving asset utilization efficiency.