Solventum Corp. (SOLV)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 600,000 | 61,000 | 91,000 | — |
| Short-term investments | US$ in thousands | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,771,000 | 1,311,000 | 1,406,000 | — |
| Quick ratio | 0.34 | 0.05 | 0.06 | — |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($600,000K
+ $—K
+ $—K)
÷ $1,771,000K
= 0.34
The quick ratio of Solventum Corp. has shown significant improvement over the years, increasing from 0.06 in 2021 to 0.34 in 2023. This indicates that the company's ability to meet its short-term liabilities with its liquid assets has improved substantially. A quick ratio of 0.34 suggests that Solventum Corp. has sufficient liquid assets to cover its current liabilities, providing a measure of the company's short-term liquidity and financial health. It is essential for the company to maintain this upward trend in the quick ratio to ensure it can easily meet its short-term obligations without relying on selling inventory or other less liquid assets.
Peer comparison
Dec 31, 2023