Solventum Corp. (SOLV)

Operating return on assets (Operating ROA)

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
Total assets US$ in thousands 14,457,000 14,377,000 13,594,000 14,075,000 —
Operating ROA 7.17% 11.77% 12.45% 13.35% —

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,036,000K ÷ $14,457,000K
= 7.17%

Operating ROA is a financial ratio that indicates a company's ability to generate operating profit from its assets. Solventum Corp.'s operating ROA has shown a gradual decline over the years, decreasing from 13.35% in December 31, 2021 to 7.17% in December 31, 2024. This decreasing trend suggests that the company may be facing challenges in efficiently utilizing its assets to generate operating income. It is important for Solventum Corp. to address this decline and improve its operational efficiency to enhance profitability and sustain long-term success.