Solventum Corp. (SOLV)
Total asset turnover
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,208,500 | 8,236,000 | 8,146,000 | 8,101,000 | 8,115,500 | |||
| Total assets | US$ in thousands | 14,711,000 | 14,377,000 | 13,873,000 | 14,311,000 | 13,641,000 | 13,594,000 | — | — |
| Total asset turnover | 0.56 | 0.57 | 0.59 | 0.57 | 0.59 |
March 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $8,208,500K ÷ $14,711,000K
= 0.56
Total asset turnover measures how efficiently a company is utilizing its total assets to generate revenue. A higher total asset turnover indicates that the company is more efficient in generating sales relative to its total assets. Solventum Corp.'s total asset turnover has been relatively consistent over the recent quarters, hovering around 0.57 to 0.59. This suggests that the company is effectively utilizing its assets to generate revenue.
However, with a total asset turnover below 1, Solventum Corp. may have room for improvement in using its assets more efficiently to generate sales. It would be beneficial for the company to analyze its asset management strategies and identify ways to increase revenue generation relative to its asset base. Overall, while Solventum Corp. is maintaining a stable total asset turnover, there may be opportunities for further optimization in asset utilization.
Peer comparison
Mar 31, 2024