Solventum Corp. (SOLV)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,036,000 | 1,692,000 | 1,693,000 | 1,879,000 | 1,430,000 |
| Revenue | US$ in thousands | 8,254,000 | 8,197,000 | 8,130,000 | 8,171,000 | 7,281,000 |
| Operating profit margin | 12.55% | 20.64% | 20.82% | 23.00% | 19.64% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,036,000K ÷ $8,254,000K
= 12.55%
The operating profit margin of Solventum Corp. has shown some fluctuations over the past five years. In December 2020, the operating profit margin stood at 19.64%, indicating that the company generated $0.1964 in operating profit for every dollar of revenue.
By December 2021, the operating profit margin improved to 23.00%, reflecting increased efficiency in controlling operating expenses and generating higher operating profits relative to sales. However, in December 2022, the margin slightly decreased to 20.82%, suggesting potential challenges in maintaining profitability levels.
In the following year, December 2023, the operating profit margin remained relatively stable at 20.64%, indicating that Solventum Corp. continued to effectively manage its operating costs and sustain profitability. Notably, by December 2024, the operating profit margin experienced a significant decline to 12.55%, raising concerns about the company's ability to generate sufficient profits from its operations compared to previous years.
Overall, while Solventum Corp. has demonstrated fluctuations in its operating profit margin over the five-year period, management may need to focus on implementing strategies to enhance operational efficiency and profitability to ensure long-term financial health and sustainability.
Peer comparison
Dec 31, 2024