Solventum Corp. (SOLV)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 479,000 | 1,346,000 | 1,343,000 | 1,460,000 | 1,138,000 |
| Revenue | US$ in thousands | 8,254,000 | 8,197,000 | 8,130,000 | 8,171,000 | 7,281,000 |
| Net profit margin | 5.80% | 16.42% | 16.52% | 17.87% | 15.63% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $479,000K ÷ $8,254,000K
= 5.80%
Net profit margin is a key financial ratio that indicates the percentage of each dollar of revenue that results in net profit after all expenses are deducted. Analyzing Solventum Corp.'s net profit margin over the years provides insight into the company's profitability trends.
In 2020, Solventum Corp. had a net profit margin of 15.63%, showing that the company's net profit was 15.63 cents for every dollar of revenue generated. The net profit margin increased to 17.87% in 2021, indicating improved profitability. However, in 2022, the net profit margin slightly decreased to 16.52%, reflecting a potential stabilization or minor decline in profitability.
The trend continued in 2023 with a net profit margin of 16.42%, remaining relatively consistent with the previous year. However, there was a significant drop in 2024 as the net profit margin declined sharply to 5.80%. This substantial decrease may indicate challenges or changes in the company's operations or financial performance during that year.
Overall, Solventum Corp.'s net profit margin fluctuated over the analyzed period, with variations in profitability levels. It is crucial for investors and stakeholders to monitor these fluctuations and understand the underlying factors influencing the company's profitability to make informed decisions about its financial health and performance.
Peer comparison
Dec 31, 2024