Solventum Corp. (SOLV)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 605,000 | 771,000 | 887,000 | 1,179,000 | 1,238,000 | 1,442,000 | 1,582,000 | 1,637,000 | 1,692,000 |
| 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 |
| Pretax margin | 7.33% | 9.32% | 10.76% | 14.36% | 15.03% | 17.70% | 19.53% | 20.17% | 20.81% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $605,000K ÷ $8,253,000K
= 7.33%
The pretax margin of Solventum Corp. has shown a decreasing trend over the analyzed periods. Starting at 20.81% on December 31, 2022, it declined to 7.33% by December 31, 2024. This indicates that the company's ability to generate profits before accounting for taxes has been eroding. A decreasing pretax margin can suggest challenges in controlling operating expenses, declining revenues, or inefficiencies in the firm's operations. It is important for Solventum Corp. to closely monitor and address the factors contributing to this downward trend to ensure sustained profitability and financial health.
Peer comparison
Dec 31, 2024