Solventum Corp. (SOLV)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 479,000 | 1,346,000 | 1,343,000 | 1,460,000 | 1,138,000 |
| Total stockholders’ equity | US$ in thousands | 2,959,000 | 3,409,000 | 11,742,000 | 12,059,000 | — |
| ROE | 16.19% | 39.48% | 11.44% | 12.11% | — |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $479,000K ÷ $2,959,000K
= 16.19%
Based on the provided data, Solventum Corp.'s return on equity (ROE) has shown significant fluctuations over the years.
From December 31, 2020, where ROE data is not available ("—"), to December 31, 2021, the ROE stood at 12.11%, indicating that for every dollar of equity, the company generated a return of 12.11%.
There was a slight decrease in ROE to 11.44% by December 31, 2022, which may suggest a dip in the company's profitability and/or efficiency in that particular year.
However, the most notable increase occurred by December 31, 2023, where the ROE surged to 39.48%. This sharp rise could be attributed to improved operational performance, increased profitability, or better utilization of shareholders' equity.
The following year, December 31, 2024, saw a decrease in ROE to 16.19%, which, although still a healthy return, indicates a relative decrease in efficiency or profitability compared to the previous year.
In conclusion, Solventum Corp.'s ROE has displayed variability, with both positive and negative trends observed over the years. Further analysis would be needed to understand the specific factors driving these fluctuations and to assess the company's overall performance.
Peer comparison
Dec 31, 2024