Solventum Corp. (SOLV)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,409,000 | 11,742,000 | 12,059,000 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,409,000K)
= 0.00
The debt-to-capital ratio of Solventum Corp. has been consistently zero for the past three years (2021, 2022, and 2023), indicating that the company has not been utilizing any debt to finance its operations relative to its total capital structure during these years. The absence of debt in the capital structure implies that the company's financial obligations are entirely or predominantly funded by equity. It is worth noting that there is no data provided for the debt-to-capital ratio in 2020, so the trend analysis is limited to the three most recent years. This consistent zero debt-to-capital ratio suggests that Solventum Corp. has been managing its capital structure without relying on debt financing, which may indicate a conservative approach to financial leverage or potentially ample access to equity funding.
Peer comparison
Dec 31, 2023