Solventum Corp. (SOLV)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 899,000 | 1,249,000 | 1,368,000 | 1,541,000 | 1,525,000 | 1,557,000 | 1,587,000 | 1,612,500 | 1,690,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,959,000 | 3,192,000 | 2,867,000 | 3,851,000 | 3,409,000 | 3,250,000 | 3,964,000 | 11,742,000 | 11,742,000 |
| Return on total capital | 30.38% | 39.13% | 47.72% | 40.02% | 44.73% | 47.91% | 40.04% | 13.73% | 14.39% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $899,000K ÷ ($—K + $2,959,000K)
= 30.38%
Solventum Corp.'s return on total capital has shown fluctuations over the analyzed period, ranging from 13.73% to 47.91%. The company started the period with a return on total capital of 14.39% on December 31, 2022, which decreased slightly to 13.73% by March 31, 2023.
However, there was a significant improvement in the return on total capital in the subsequent quarters, with notable peaks of 47.91% on September 30, 2023, and 44.73% on December 31, 2023. These high returns suggest efficient utilization of both debt and equity in generating profits for the company.
The return on total capital remained relatively strong in the following quarters, ranging between 30.38% and 47.72%. Despite a slight decline to 30.38% on December 31, 2024, Solventum Corp. generally maintained healthy returns on its total capital throughout the analyzed period.
Overall, the trend in Solventum Corp.'s return on total capital indicates effective capital deployment and operational performance, which could be a positive signal for investors and stakeholders.
Peer comparison
Dec 31, 2024