Solventum Corp. (SOLV)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 4,560,000 | 4,695,000 | 4,923,000 | 4,315,000 |
| Revenue | US$ in thousands | 8,241,000 | 8,130,000 | 8,171,000 | 7,281,000 |
| Gross profit margin | 55.33% | 57.75% | 60.25% | 59.26% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $4,560,000K ÷ $8,241,000K
= 55.33%
Solventum Corp.'s gross profit margin has displayed a declining trend over the past four years. The company's gross profit margin decreased from 59.26% in 2020 to 55.33% in 2023. This downward trajectory indicates that Solventum Corp.'s ability to generate profit from its core business activities has diminished over time. It is important for the company to investigate the reasons behind this decline and take appropriate measures to improve its efficiency in cost control and revenue generation. A decreasing gross profit margin may signal potential challenges in managing production costs or pricing strategies, which could impact the overall profitability of the company in the long term.
Peer comparison
Dec 31, 2023