Solventum Corp. (SOLV)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,851,000 | 3,409,000 | 3,250,000 | 3,964,000 | 11,742,000 | 11,742,000 | — | — |
| ROE | 23.42% | 28.10% | 36.68% | 31.33% | 10.95% |
March 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $902,000K ÷ $3,851,000K
= 23.42%
Solventum Corp.'s return on equity (ROE) has shown fluctuations over the past eight quarters. The ROE for the most recent quarter ending on March 31, 2024, stood at 23.42%, which represents a decrease from the previous quarter where it was at 28.10%. However, the ROE has generally been on an upward trend since the third quarter of 2022 when it was at 10.95%.
The highest ROE in the provided data was recorded in the third quarter of 2023 at 36.68%, indicating strong profitability relative to shareholders' equity during that period. The company experienced a subsequent decline in ROE in the following quarters, but the values remained relatively healthy.
Overall, Solventum Corp.'s ROE performance demonstrates some variability, which could be attributed to factors such as changes in profitability, financial leverage, or asset turnover. It is essential for stakeholders to continue monitoring the ROE trend to assess the company's ability to generate returns on the shareholders' equity investment effectively.
Peer comparison
Mar 31, 2024