Solventum Corp. (SOLV)
Net profit margin
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 902,000 | 958,000 | 1,192,000 | 1,242,000 | 1,285,500 |
| Revenue (ttm) | US$ in thousands | 8,208,500 | 8,236,000 | 8,146,000 | 8,101,000 | 8,115,500 |
| Net profit margin | 10.99% | 11.63% | 14.63% | 15.33% | 15.84% |
March 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $902,000K ÷ $8,208,500K
= 10.99%
Solventum Corp.'s net profit margin has displayed a fluctuating trend over the past five quarters. The net profit margin decreased from 15.84% in March 2023 to 10.99% in March 2024. This decline suggests a reduction in the proportion of profits generated from each dollar of revenue, indicating potential challenges in cost management or revenue generation.
The net profit margin rebounded from 10.99% in March 2024 to 11.63% in December 2023 but remained below the levels seen in the earlier quarters. The subsequent decline in the net profit margin to 14.63% in September 2023 and further to 15.33% in June 2023 may indicate improvements in cost efficiency and revenue generation.
Overall, while the net profit margin has fluctuated, Solventum Corp. should evaluate the factors contributing to these variations to sustain or improve profitability in the future. Regular monitoring and analysis of the net profit margin will be crucial for the company to make informed strategic decisions and enhance financial performance.
Peer comparison
Mar 31, 2024