Solventum Corp. (SOLV)
Working capital 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 current assets | US$ in thousands | 2,916,000 | 2,231,000 | 2,189,000 | — |
| Total current liabilities | US$ in thousands | 1,771,000 | 1,311,000 | 1,406,000 | — |
| Working capital turnover | 7.20 | 8.84 | 10.44 | — |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,241,000K ÷ ($2,916,000K – $1,771,000K)
= 7.20
Solventum Corp.'s working capital turnover has decreased over the past three years, with a decrease from 10.44 in 2021 to 8.84 in 2022, and further to 7.20 in 2023. This indicates that the company's efficiency in utilizing its working capital to generate sales revenue has declined. A lower working capital turnover ratio may suggest that the company is struggling to efficiently manage its current assets and liabilities to support its operations. The downward trend in working capital turnover warrants further investigation into Solventum Corp.'s operational and financial management practices to address potential inefficiencies and improve overall performance.
Peer comparison
Dec 31, 2023