Solventum Corp. (SOLV)
Cash ratio
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 996,000 | 600,000 | 500,000 | 500,000 | -61,000 | 61,000 | — | — |
| Short-term investments | US$ in thousands | — | — | — | — | 122,000 | — | — | — |
| Total current liabilities | US$ in thousands | 1,854,000 | 1,771,000 | 1,471,000 | 1,412,000 | 1,382,000 | 1,311,000 | — | — |
| Cash ratio | 0.54 | 0.34 | 0.34 | 0.35 | 0.04 | 0.05 | — | — |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($996,000K
+ $—K)
÷ $1,854,000K
= 0.54
The cash ratio of Solventum Corp. has shown fluctuations over the past few quarters. As of March 31, 2024, the cash ratio stands at 0.54, indicating that the company has $0.54 in cash and cash equivalents for every $1 of current liabilities, reflecting a healthy liquidity position. This marks a significant improvement from the previous quarter where the ratio was 0.34 in December 2023.
Comparing with the same period in the prior year, the cash ratio has experienced substantial growth as in March 31, 2023, it was only 0.04. This suggests that Solventum Corp. has made strides in managing its cash position and strengthening its ability to meet short-term obligations.
It is worth noting that in the third quarter of 2022, the data is missing, which limits our ability to track the company's performance consistently. Overall, the upward trend in the cash ratio indicates an improvement in the company's liquidity position, which is a positive signal for investors and creditors.
Peer comparison
Mar 31, 2024