Solventum Corp. (SOLV)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 478,000 | 521,000 | 684,000 | 916,000 | 972,000 | 1,206,000 | 1,256,000 | 1,285,500 | 1,343,000 |
| 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 |
| ROA | 3.31% | 3.53% | 4.69% | 6.23% | 6.76% | 8.69% | 8.78% | 9.42% | 9.88% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $478,000K ÷ $14,457,000K
= 3.31%
Solventum Corp.'s return on assets (ROA) has been showing a declining trend over the indicated periods, based on the provided data.
As of December 31, 2022, the ROA stood at 9.88%, indicating that the company generated 9.88 cents of profit for every dollar of assets it owned. The ROA decreased to 3.31% by December 31, 2024, suggesting a significant reduction in profit generation efficiency relative to its asset base.
The gradual decrease in ROA may signify various factors such as declining profitability, inefficiencies in asset utilization, or a combination of both. This trend warrants further investigation into Solventum Corp.'s financial performance, operational strategies, and asset management practices to identify the underlying reasons for the diminishing ROA and to implement necessary corrective measures.
Peer comparison
Dec 31, 2024