Solventum Corp. (SOLV)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022
Total current assets	US$ in thousands	3,249,000	3,354,000	3,363,000	3,359,000	2,916,000	2,656,000	2,718,000	61,000	2,231,000
Total current liabilities	US$ in thousands	2,703,000	2,904,000	2,571,000	1,854,000	1,771,000	1,471,000	1,412,000	1,382,000	1,311,000
Current ratio		1.20	1.15	1.31	1.81	1.65	1.81	1.92	0.04	1.70

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,249,000K ÷ $2,703,000K
= 1.20

Solventum Corp.'s current ratio has exhibited varying levels over the past three years. As of December 31, 2022, the current ratio stood at 1.70, indicating that the company had $1.70 in current assets for every dollar of current liabilities. The ratio saw a significant decline to 0.04 on March 31, 2023, which may raise concerns about the company's short-term liquidity position.

However, Solventum Corp. swiftly recovered, with the current ratio rebounding to 1.92 by June 30, 2023. This improvement suggests a better ability to meet its short-term obligations. The ratio remained relatively stable, hovering around 1.81 in the subsequent quarters of September 30, 2023, and December 31, 2023.

In the following year, the current ratio experienced some fluctuations. By March 31, 2024, the ratio was at 1.81, indicating a healthy liquidity position. However, on June 30, 2024, the ratio decreased to 1.31, and further dropped to 1.15 on September 30, 2024. These declines may raise concerns about the company's ability to cover its short-term liabilities.

As of December 31, 2024, the current ratio had slightly improved to 1.20. Overall, while Solventum Corp. has shown some fluctuations in its current ratio, it is essential for stakeholders to closely monitor these changes to assess the company's liquidity and short-term financial health effectively.