Solventum Corp. (SOLV)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| 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 | — |
| Current ratio | 1.65 | 1.70 | 1.56 | — |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,916,000K ÷ $1,771,000K
= 1.65
Solventum Corp.'s current ratio has exhibited some fluctuations over the past three years. The current ratio was 1.56 in 2021, improved to 1.70 in 2022, and then decreased slightly to 1.65 in 2023. Generally, a current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting its ability to cover short-term obligations. However, a decreasing trend in the current ratio may imply potential liquidity challenges if not managed effectively. It is essential for Solventum Corp. to monitor its liquidity position closely to ensure it can meet its short-term financial obligations.
Peer comparison
Dec 31, 2023