Solventum Corp. (SOLV)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 762,000 | 600,000 | 61,000 | 91,000 | — |
| Short-term investments | US$ in thousands | — | 406,000 | — | — | — |
| Total current liabilities | US$ in thousands | 2,703,000 | 1,771,000 | 1,311,000 | 1,406,000 | — |
| Cash ratio | 0.28 | 0.57 | 0.05 | 0.06 | — |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($762,000K
+ $—K)
÷ $2,703,000K
= 0.28
The cash ratio of Solventum Corp. over the years shows a mixed trend. In December 31, 2021, the cash ratio was at 0.06, indicating that the company had $0.06 of cash and cash equivalents for every dollar of current liabilities. This figure decreased slightly to 0.05 by December 31, 2022, suggesting a potential decrease in liquidity.
However, there was a significant improvement in the cash ratio by December 31, 2023, where it increased to 0.57. This indicates a substantial increase in the company's ability to cover its short-term obligations with cash on hand.
By December 31, 2024, the cash ratio decreased to 0.28, showing a decline in liquidity compared to the previous year. Overall, while there have been fluctuations in the cash ratio over the years, Solventum Corp. demonstrated a strong liquidity position in 2023, but its cash coverage of current liabilities fluctuated in other years.
Peer comparison
Dec 31, 2024