Solventum Corp. (SOLV)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,535,500 | 1,564,000 | 1,596,000 | 1,626,000 | 1,658,000 | |||
| Total assets | US$ in thousands | 14,711,000 | 14,377,000 | 13,873,000 | 14,311,000 | 13,641,000 | 13,594,000 | — | — |
| Operating ROA | 10.44% | 10.88% | 11.50% | 11.36% | 12.15% |
March 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,535,500K ÷ $14,711,000K
= 10.44%
Solventum Corp.'s operating return on assets (operating ROA) has shown a declining trend over the most recent quarters, dropping from 12.15% in March 2023 to 10.44% in March 2024. This suggests that the company's operating profit generated from its assets has decreased over this period. A lower operating ROA may indicate inefficiencies in the company's operations or decreasing profitability relative to its asset base. It is important for Solventum Corp. to further analyze the reasons behind this declining trend and take appropriate actions to improve its operating ROA in order to enhance its overall financial performance and efficiency.
Peer comparison
Mar 31, 2024