Solventum Corp. (SOLV)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 55.66% | 55.47% | 55.52% | 56.09% | 55.78% | 56.32% | 56.59% | 57.17% | 57.75% |
| Operating profit margin | 12.57% | 15.12% | 16.60% | 18.71% | 18.99% | 19.59% | 20.07% | 20.43% | 20.79% |
| Pretax margin | 7.33% | 9.32% | 10.76% | 14.36% | 15.03% | 17.70% | 19.53% | 20.17% | 20.81% |
| Net profit margin | 5.79% | 6.30% | 8.29% | 11.16% | 11.80% | 14.80% | 15.50% | 15.84% | 16.52% |
Solventum Corp.'s profitability ratios show a declining trend over the analyzed period.
- The Gross Profit Margin has decreased from 57.75% in December 2022 to 55.66% in December 2024. This indicates a decrease in the percentage of revenue remaining after the cost of goods sold.
- The Operating Profit Margin has declined from 20.79% in December 2022 to 12.57% in December 2024. This suggests that the company's operating expenses have been increasing at a faster rate than its operating income.
- The Pre-tax Margin has shown a significant decrease from 20.81% in December 2022 to 7.33% in December 2024. This indicates a substantial decline in the profitability of the company before accounting for taxes.
- The Net Profit Margin has also experienced a notable decrease from 16.52% in December 2022 to 5.79% in December 2024. This decline highlights a decrease in the company's bottom line profitability after accounting for all expenses and taxes.
Overall, Solventum Corp. has exhibited a concerning trend of declining profitability margins, which may signal challenges in maintaining and growing its profitability levels in the future.
Return on investment
| 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 return on assets (Operating ROA) | 7.17% | 8.48% | 9.39% | 10.44% | 10.88% | 11.50% | 11.36% | 12.15% | 12.43% |
| Return on assets (ROA) | 3.31% | 3.53% | 4.69% | 6.23% | 6.76% | 8.69% | 8.78% | 9.42% | 9.88% |
| Return on total capital | 30.38% | 39.13% | 47.72% | 40.02% | 44.73% | 47.91% | 40.04% | 13.73% | 14.39% |
| Return on equity (ROE) | 16.15% | 16.32% | 23.86% | 23.79% | 28.51% | 37.11% | 31.69% | 10.95% | 11.44% |
Solventum Corp.'s profitability ratios have shown a declining trend over the reported periods.
- Operating Return on Assets (Operating ROA) decreased from 12.43% as of December 31, 2022, to 7.17% as of December 31, 2024. This indicates that the company's operating income generated from its assets has been decreasing.
- Return on Assets (ROA) also declined from 9.88% as of December 31, 2022, to 3.31% as of December 31, 2024. This suggests that Solventum's overall profitability in relation to its total assets has been decreasing significantly over time.
- Return on Total Capital decreased from 14.39% as of December 31, 2022, to 30.38% as of December 31, 2024. While this ratio shows a better performance compared to ROA, it still indicates a decreasing trend in terms of the return the company is generating from its total capital.
- Return on Equity (ROE) also displayed a downward trend, decreasing from 11.44% as of December 31, 2022, to 16.15% as of December 31, 2024. This ratio reflects the return generated for the shareholders and shows that the company's profitability in relation to equity has been decreasing, albeit at a slower rate compared to ROA and Operating ROA.
Overall, the declining trend in Solventum Corp.'s profitability ratios suggests that the company's ability to generate profits from its assets, capital, and equity has weakened over the reported periods, which may raise concerns for investors and stakeholders regarding the company's financial performance and efficiency.