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Total debt declined to $5.3B from $8.3B, improving D/E to 1.10, but goodwill of $5.6B (39% of assets) and a current ratio of 1.02 indicate elevated intangible and liquidity risks.
| Total Current Assets | 3.74B | 3.86B | 3.25B | 2.52B | 2.23B | 2.19B |
| Cash & Short-Term Investments | 403M | 878M | 762M | 194M | 61M | 91M |
| Cash Only | 403M | 878M | 762M | 194M | 61M | 91M |
| Short-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Accounts Receivable | 1.43B | 1.03B | 1.23B | 1.31B | 1.17B | 1.18B |
| Days Sales Outstanding | 49.9 | 45.33 | 54.35 | 58.47 | 52.57 | 52.58 |
| Inventory | 1.04B | 1.07B | 965M | 857M | 873M | 813M |
| Days Inventory Outstanding | 102.86 | 100.44 | 96.21 | 89.27 | 92.76 | 91.36 |
| Other Current Assets | 866M | 881M | 293M | 155M | 126M | 108M |
| Total Non-Current Assets | 10.5B | 10.44B | 11.21B | 11.42B | 11.36B | 11.89B |
| Property, Plant & Equipment | 1.56B | 1.33B | 1.62B | 1.46B | 1.32B | 1.31B |
| Fixed Asset Turnover | 5.76x | 6.28x | 5.09x | 5.63x | 6.16x | 6.26x |
| Goodwill | 5.63B | 5.7B | 6.38B | 6.54B | 6.43B | 6.67B |
| Intangible Assets | 2.41B | 2.59B | 2.54B | 2.9B | 3.25B | 3.66B |
| Long-Term Investments | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Current Assets | 903M | 813M | 665M | 530M | 358M | 253M |
| Total Assets | 14.24B | 14.29B | 14.46B | 13.94B | 13.59B | 14.07B |
| Asset Turnover | 0.59x | 0.58x | 0.57x | 0.59x | 0.60x | 0.58x |
| Asset Growth % | -14.84% | -1.13% | 3.69% | 2.57% | -3.42% | - |
| Total Current Liabilities | 3.66B | 3.14B | 2.7B | 1.73B | 1.31B | 1.41B |
| Accounts Payable | 701M | 687M | 618M | 477M | 348M | 320M |
| Days Payables Outstanding | 66.8 | 64.73 | 61.61 | 49.69 | 36.98 | 35.96 |
| Short-Term Debt | 506M | 0 | 200M | 0 | 27M | 0 |
| Deferred Revenue (Current) | 2.41B | 621M | 572M | 574M | 559M | 0 |
| Other Current Liabilities | 1.53B | 1.83B | 659M | 365M | 312M | 732M |
| Current Ratio | 1.02x | 1.23x | 1.20x | 1.46x | 1.70x | 1.56x |
| Quick Ratio | 0.74x | 0.89x | 0.84x | 0.96x | 1.04x | 0.98x |
| Cash Conversion Cycle | 85.96 | 81.04 | 88.94 | 98.05 | 108.36 | 107.98 |
| Total Non-Current Liabilities | 5.78B | 6.11B | 8.79B | 549M | 541M | 610M |
| Long-Term Debt | 4.57B | 5.04B | 7.81B | 8.3B | 0 | 0 |
| Capital Lease Obligations | 207M | 0 | 0 | 0 | 68M | 83M |
| Deferred Tax Liabilities | 651M | 164M | 225M | 231M | 215M | 0 |
| Other Non-Current Liabilities | 843M | 910M | 760M | -7.99B | 258M | 527M |
| Total Liabilities | 9.44B | 9.24B | 11.5B | 2.28B | 1.85B | 2.02B |
| Total Debt | 5.29B | 5.04B | 8.01B | 8.3B | 95M | 112M |
| Net Debt | 4.88B | 4.16B | 7.25B | 8.11B | 34M | 21M |
| Debt / Equity | 1.10x | 1.00x | 2.71x | 0.71x | 0.01x | 0.01x |
| Debt / EBITDA | 1.95x | 1.89x | 5.03x | 3.69x | 0.04x | 0.05x |
| Net Debt / EBITDA | 1.81x | 1.56x | 4.56x | 3.60x | 0.01x | 0.01x |
| Interest Coverage | 7.38x | 5.94x | 2.65x | - | - | - |
| Total Equity | 4.8B | 5.05B | 2.96B | 11.67B | 11.74B | 12.06B |
| Equity Growth % | 210.85% | 70.63% | -74.64% | -0.65% | -2.63% | - |
| Book Value per Share | 27.52 | 28.80 | 17.04 | 67.55 | 68.08 | 69.92 |
| Total Shareholders' Equity | 4.8B | 5.05B | 2.96B | 11.67B | 11.74B | 12.06B |
| Common Stock | 2M | 2M | 2M | 0 | 0 | 0 |
| Retained Earnings | 1.9B | 1.8B | 242M | 0 | 0 | 0 |
| Treasury Stock | -355M | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -669M | -625M | -1.06B | -337M | -497M | -200M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
Goodwill impairment and leverage
Solventum's total debt fell from $8.3B to $5.3B over ten quarters, while equity rose from $3.9B to $4.8B, as per financial statements, indicating a deleveraging trajectory.
The balance sheet has strengthened materially since early 2024, with D/E dropping from 2.16 to 1.10 by 2026Q2. This deleveraging appears driven by debt repayment and retained earnings accumulation, though the pace has slowed recently. The equity base has grown by roughly $0.9B, but retained earnings remain modest at $1.9B, suggesting limited internal capital generation relative to the balance sheet size.
Total debt declined to $5.3B in 2026Q2 from $8.3B in 2024Q1, with D/E improving to 1.10, as reported in SEC filings, yet leverage still exceeds most healthcare peers.
The debt reduction is a positive sign, but the absolute debt level remains substantial relative to equity. The D/E of 1.10 is higher than peers like BDX (0.76) and COO (0.34), indicating Solventum still carries a heavier debt load. The recent stabilization of debt around $5B suggests the aggressive deleveraging phase may be over, and future debt reduction could be slower. Given the prior cash flow deterioration, refinancing risk may be manageable but warrants monitoring.
Goodwill of $5.6B represents 39% of total assets as of 2026Q2, according to balance sheet data, while net PPE is only $1.6B, indicating an asset-light model with significant intangible risk.
The asset mix is heavily weighted toward goodwill and intangibles, which is typical for a spin-off but raises impairment risk if cash flows weaken. Net PPE has grown from $1.5B to $1.6B over the period, suggesting modest capital investment, but the low PPE relative to revenue implies a service-oriented or IP-driven business. The decline in goodwill from $6.5B in 2024Q1 to $5.6B in 2026Q2 may indicate prior impairments or divestitures, and further write-downs could pressure equity.
Retained earnings turned positive from $0 in 2024Q1 to $1.9B in 2026Q2, as per financial statements, while equity grew to $4.8B, reflecting improved profitability and reduced leverage.
The equity base has strengthened, but the quality is mixed: retained earnings are still relatively low compared to total equity, and the company has been active in buybacks, which may have offset some equity growth. The increase in retained earnings aligns with the prior income statement's volatile net income, suggesting that the equity build is not yet stable. Investors should monitor whether retained earnings can continue to grow given the recent cash flow strain.
Cash dropped from $996M in 2024Q1 to $403M in 2026Q2, while the current ratio fell to 1.02, as reported in financial statements, indicating a shrinking liquidity cushion.
The current ratio has deteriorated from 1.81 to 1.02 over the period, approaching the critical threshold of 1.0. Cash has been drawn down significantly, likely to fund debt repayment and buybacks, as seen in the cash flow statement. With operating cash flow weakening and working capital consuming cash, the liquidity buffer appears thin, leaving limited room for unexpected shocks. This trend warrants close monitoring.
Goodwill of $5.6B, nearly 39% of total assets, as per balance sheet data, could be impaired if revenue stagnation persists, potentially eroding equity and leverage metrics.
The large goodwill balance is a non-obvious risk that could distort the balance sheet's apparent health. If the company's revenue growth remains flat and operating margins compress, as indicated by prior income statement analysis, the carrying value of goodwill may not be supportable. An impairment would directly reduce equity and increase D/E, reversing the recent deleveraging progress. Investors should assess the recoverability of goodwill in light of the company's cash flow deterioration.
Quick answers to the most common questions about buying SOLV stock.
As of 2025, Solventum Corporation (SOLV) had total assets of $14.29B including $3.86B in current assets.
Solventum Corporation (SOLV) carries total debt of $5.04B, offset by $878.0M in cash and short-term investments. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Solventum Corporation (SOLV) has total shareholders' equity (book value) of $5.05B ($28.80 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Solventum Corporation (SOLV) reported a current ratio of 1.23x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.