Solventum Corp. (SOLV)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,959,000 | 3,409,000 | 11,742,000 | 12,059,000 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,959,000K)
= 0.00
The debt-to-capital ratio for Solventum Corp. has shown a consistent trend of 0.00% from December 31, 2021, to December 31, 2024. This indicates that the company has not utilized any debt as a source of funding in relation to its total capital during this period. A debt-to-capital ratio of 0.00% generally suggests that the company's capital structure is predominantly equity-financed, which can be viewed positively as it signifies lower financial risk and potentially lower interest expenses. However, it's also important to consider that excessive reliance on equity financing can sometimes indicate limited leverage and potentially underutilized financial leverage for growth opportunities.
Peer comparison
Dec 31, 2024