Solventum Corp. (SOLV)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 14,457,000 | 14,745,000 | 14,578,000 | 14,711,000 | 14,377,000 | 13,873,000 | 14,311,000 | 13,641,000 | 13,594,000 |
| Operating ROA | 7.17% | 8.48% | 9.39% | 10.44% | 10.88% | 11.50% | 11.36% | 12.15% | 12.43% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,037,000K ÷ $14,457,000K
= 7.17%
The operating return on assets (operating ROA) of Solventum Corp. has shown a declining trend over the analyzed period from December 31, 2022, to December 31, 2024. The ROA started at 12.43% in December 2022 and gradually decreased to 7.17% by December 2024.
This decreasing trend indicates that Solventum Corp. may be experiencing challenges in generating operating income relative to its total assets. A declining operating ROA could suggest inefficiencies in the company's operations or decreased profitability from its asset base.
It is essential for Solventum Corp. to closely monitor this metric and assess the underlying reasons for the decline in operating ROA. Strategies to improve efficiency, optimize asset utilization, and enhance profitability may be necessary to reverse this downward trend and ensure sustainable financial performance.
Peer comparison
Dec 31, 2024