Solventum Corp. (SOLV)

Operating 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
Operating income (ttm) US$ in thousands 1,037,000 1,251,000 1,369,000 1,535,500 1,564,000 1,596,000 1,626,000 1,658,000 1,690,000
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
Operating profit margin 12.57% 15.12% 16.60% 18.71% 18.99% 19.59% 20.07% 20.43% 20.79%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,037,000K ÷ $8,253,000K
= 12.57%

Solventum Corp.'s operating profit margin has shown a decreasing trend over the analyzed period from December 2022 to December 2024. The margin started at 20.79% in December 2022 and gradually declined to 12.57% by December 2024.

The company's operating profit margin remained relatively stable around the 20% mark in the initial quarters of the analysis period but then experienced a more significant decline in the latter quarters. This decreasing trend may indicate challenges in managing operating expenses relative to revenue generation or pricing pressures affecting profitability.

It is important for Solventum Corp. to closely monitor its operating profit margin and implement strategies to improve operational efficiency and cost management in order to sustain and potentially increase profitability in the future.