Solventum Corp. (SOLV)
Net profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 478,000 | 521,000 | 684,000 | 916,000 | 972,000 | 1,206,000 | 1,256,000 | 1,285,500 | 1,343,000 |
| Revenue (ttm) | US$ in thousands | 8,253,000 | 8,274,000 | 8,246,000 | 8,208,500 | 8,236,000 | 8,146,000 | 8,101,000 | 8,115,500 | 8,130,000 |
| Net profit margin | 5.79% | 6.30% | 8.29% | 11.16% | 11.80% | 14.80% | 15.50% | 15.84% | 16.52% |
December 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $478,000K ÷ $8,253,000K
= 5.79%
The net profit margin of Solventum Corp. has shown a declining trend over the evaluated periods. Starting at a healthy level of 16.52% on December 31, 2022, the net profit margin gradually decreased to 5.79% by December 31, 2024. This decline indicates that the company's profitability relative to its revenue has been eroding over time.
The decreasing net profit margin could be attributed to various factors such as increasing costs, pricing pressures, or inefficiencies in operations. A significant drop in the net profit margin from 15.50% on June 30, 2023, to 11.80% on December 31, 2023, followed by a further decline to 5.79% by December 31, 2024, raises concerns about the company's ability to maintain profitability.
Investors and stakeholders may view this negative trend in the net profit margin as a red flag, signaling potential financial challenges or operational inefficiencies within Solventum Corp. Further analysis of the company's expenses, revenue streams, and overall financial health would be essential to understand the underlying reasons for the declining net profit margin and to identify potential strategies for improvement.
Peer comparison
Dec 31, 2024