Solventum Corp. (SOLV)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,249,000 | 2,916,000 | 2,231,000 | 2,189,000 | — |
| Total current liabilities | US$ in thousands | 2,703,000 | 1,771,000 | 1,311,000 | 1,406,000 | — |
| Current ratio | 1.20 | 1.65 | 1.70 | 1.56 | — |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,249,000K ÷ $2,703,000K
= 1.20
The current ratio of Solventum Corp. has shown a positive trend over the past few years, indicating an improvement in the company's short-term liquidity position. As of December 31, 2021, the current ratio stood at 1.56, suggesting that the company had $1.56 in current assets for every $1 in current liabilities.
This ratio increased to 1.70 by the end of December 31, 2022, demonstrating a further enhancement in the company's ability to meet its short-term obligations. Despite a slight decrease to 1.65 on December 31, 2023, the current ratio remained above 1, indicating that Solventum Corp. continued to have more than enough current assets to cover its current liabilities.
However, there was a notable decline in the current ratio to 1.20 by December 31, 2024, which could potentially raise concerns about the company's short-term liquidity position. It is important for Solventum Corp. to closely monitor this ratio to ensure that it maintains a healthy balance between current assets and liabilities to meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024