Solventum Corp. (SOLV)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | — | 1,480,000 | 1,693,000 | 1,879,000 | 1,430,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,959,000 | 3,409,000 | 11,742,000 | 12,059,000 | — |
| Return on total capital | 0.00% | 43.41% | 14.42% | 15.58% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,959,000K)
= 0.00%
The return on total capital trend for Solventum Corp. over the years reveals fluctuations in performance. In 2020, the return on total capital was not available. However, in subsequent years, there was a decreasing trend in 2021 and 2022, with returns of 15.58% and 14.42% respectively. Notably, there was a significant surge in performance in 2023, with a return of 43.41%, indicating a substantial improvement in capital utilization efficiency. However, the company's return on total capital dropped to 0.00% in 2024, signaling a potential issue with generating returns on the total capital employed during that period. Further analysis may be required to understand the factors influencing these fluctuations and to assess the sustainability of the company's performance.
Peer comparison
Dec 31, 2024