Solventum Corp. (SOLV)
Debt-to-capital ratio
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,851,000 | 3,409,000 | 3,250,000 | 3,964,000 | 11,742,000 | 11,742,000 | — | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,851,000K)
= 0.00
The debt-to-capital ratio of Solventum Corp. has consistently been at 0.00 for the past eight quarters, indicating that the company has not utilized any debt to finance its operations in the period under review. A debt-to-capital ratio of 0.00 typically suggests that the company's operations have been funded entirely by equity, without any reliance on borrowed funds. This can be viewed positively by investors and creditors as it implies a lower financial risk and potential for financial distress due to debt obligations. However, it is important to note that a very low or zero debt-to-capital ratio may also indicate underutilization of financial leverage and potential missed opportunities for growth through optimal debt financing. Further examination of Solventum Corp.'s capital structure and overall financial strategy would be necessary to fully assess the implications of maintaining a consistently low debt-to-capital ratio.
Peer comparison
Mar 31, 2024