Solventum Corp. (SOLV)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	910,000	1,692,000	1,882,000	1,440,000
Revenue	US$ in thousands	8,241,000	8,130,000	8,171,000	7,281,000
Pretax margin		11.04%	20.81%	23.03%	19.78%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $910,000K ÷ $8,241,000K
= 11.04%

Solventum Corp.'s pretax margin has shown a declining trend over the past three years. In 2023, the pretax margin decreased significantly to 11.04% from 20.81% in 2022. This decline may indicate challenges in controlling costs or generating revenue efficiently. Furthermore, compared to 2021 and 2020, where the pretax margin was 23.03% and 19.78%, respectively, the company's profitability has weakened in the most recent year. Management should investigate the reasons behind this decline and consider implementing strategies to improve efficiency and profitability in the future.