Solventum Corp. (SOLV)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 762,000 | 772,000 | 897,000 | 996,000 | 600,000 | 500,000 | 500,000 | -61,000 | 61,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | 122,000 | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.28 | 0.27 | 0.35 | 0.54 | 0.34 | 0.34 | 0.35 | 0.04 | 0.05 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($762,000K
+ $—K
+ $—K)
÷ $2,703,000K
= 0.28
The quick ratio of Solventum Corp. has shown fluctuations over the periods analyzed. It was notably low at 0.05 as of December 31, 2022, indicating a potential liquidity concern, as the company may have had difficulty meeting its short-term obligations with its most liquid assets. The ratio decreased further to 0.04 by March 31, 2023, reinforcing the liquidity challenges faced by the company.
However, there was a significant improvement in the quick ratio to 0.35 by June 30, 2023, suggesting that the company had strengthened its ability to cover its current liabilities with its quick assets. This improvement was sustained through the subsequent quarters of 2023, with the quick ratio remaining stable at 0.34 by September 30, 2023, and December 31, 2023.
The quick ratio experienced another notable increase to 0.54 by March 31, 2024, indicating a further enhancement in the company's liquidity position. However, the ratio decreased to 0.35 by June 30, 2024, and continued to decline to 0.27 by September 30, 2024, which may suggest a potential deterioration in Solventum Corp.'s short-term liquidity position.
By the end of the period analyzed, as of December 31, 2024, the quick ratio was slightly higher at 0.28 compared to the previous quarter. Overall, the quick ratio of Solventum Corp. fluctuated throughout the periods analyzed, demonstrating varying levels of liquidity and the company's ability to meet its short-term obligations with its quick assets.
Peer comparison
Dec 31, 2024