Solventum Corp. (SOLV)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | 692,000 | 1,343,000 | 1,460,000 | 1,138,000 |
| Revenue | US$ in thousands | 8,241,000 | 8,130,000 | 8,171,000 | 7,281,000 |
| Net profit margin | 8.40% | 16.52% | 17.87% | 15.63% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $692,000K ÷ $8,241,000K
= 8.40%
The net profit margin of Solventum Corp. has shown some fluctuations over the past four years. In 2021, the company achieved the highest net profit margin of 17.87%, indicating that it was able to convert a relatively high percentage of its revenue into profit after accounting for all expenses. However, there was a decline in the net profit margin in 2022 to 16.52%, and further in 2023 to 8.40%.
The decrease in the net profit margin in the last two years suggests that Solventum Corp. may have experienced challenges in managing its costs or faced pressure on its profitability. A declining trend in the net profit margin could be a cause for concern as it may indicate inefficiencies in operations, pricing strategies, or cost control measures within the company.
It would be important for Solventum Corp. to closely evaluate the factors contributing to the decrease in its net profit margin and take appropriate actions to improve efficiency and maintain profitability in the future. Regular monitoring and analysis of the net profit margin can provide valuable insights into the financial health and performance of the company.
Peer comparison
Dec 31, 2023