Solventum Corp. (SOLV)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 600,000 | 61,000 | 91,000 | — |
| Short-term investments | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,771,000 | 1,311,000 | 1,406,000 | — |
| Cash ratio | 0.34 | 0.05 | 0.06 | — |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($600,000K
+ $—K)
÷ $1,771,000K
= 0.34
The cash ratio of Solventum Corp. has shown significant improvement over the past three years, increasing from 0.06 in 2021 to 0.34 in 2023. This indicates that the company has a higher level of cash and cash equivalents relative to its current liabilities, which is a positive sign of liquidity and short-term solvency. A cash ratio of 0.34 means that Solventum Corp. has $0.34 in cash for every $1 of current liabilities, providing a comfortable buffer to meet its short-term obligations. The substantial improvement in the cash ratio suggests improved liquidity management and financial stability within the company.
Peer comparison
Dec 31, 2023