Solventum Corp. (SOLV)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 902,000 | 958,000 | 1,192,000 | 1,242,000 | 1,285,500 | |||
| Total assets | US$ in thousands | 14,711,000 | 14,377,000 | 13,873,000 | 14,311,000 | 13,641,000 | 13,594,000 | — | — |
| ROA | 6.13% | 6.66% | 8.59% | 8.68% | 9.42% |
March 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $902,000K ÷ $14,711,000K
= 6.13%
The return on assets (ROA) of Solventum Corp. has shown a downward trend over the past several quarters. The ROA was 9.42% as of March 31, 2023, but decreased consistently to 8.68% as of June 30, 2023, and further declined to 8.59% as of September 30, 2023. The most recent ROA reported as of March 31, 2024, is at 6.13%, reflecting a continued decrease in the company's profitability in generating earnings from its assets.
This declining trend in ROA could indicate potential issues with the company's operational efficiency or declining profitability relative to its assets. It may be essential for Solventum Corp. to assess and address factors impacting its ROA to improve its financial performance and ensure sustainable growth in the future.
Peer comparison
Mar 31, 2024