Solventum Corp. (SOLV)

Current 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
Total current assets	US$ in thousands	3,359,000	2,916,000	2,656,000	2,718,000	61,000	2,231,000	—	—
Total current liabilities	US$ in thousands	1,854,000	1,771,000	1,471,000	1,412,000	1,382,000	1,311,000	—	—
Current ratio		1.81	1.65	1.81	1.92	0.04	1.70	—	—

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,359,000K ÷ $1,854,000K
= 1.81

The current ratio of Solventum Corp. has displayed fluctuations over the past quarters based on the provided data. As of March 31, 2024, the current ratio stands at 1.81, indicating that the company has $1.81 in current assets for every $1 in current liabilities. This suggests a relatively healthy liquidity position, as it shows the company's ability to meet its short-term obligations.

Looking back at previous quarters, the current ratio was 1.65 on December 31, 2023, showing a slight improvement to 1.81 on September 30, 2023. However, there was a significant decline noted on June 30, 2023, with a current ratio of 0.04. This sharp drop could be a cause for concern as it indicates a potential liquidity strain or mismanagement of current assets and liabilities.

The current ratio on March 31, 2023, at 0.04 was abnormally low and may have been influenced by specific events or financial missteps during that period. The subsequent recovery to 1.70 on December 31, 2022, and 1.81 on September 30, 2022, shows some stabilization and progress in the company's liquidity management.

In conclusion, while Solventum Corp. has shown improvements in its current ratio in recent quarters, there are fluctuations that warrant further investigation to understand the underlying reasons behind the observed trends and to ensure the company's liquidity remains sound in the future.