Solventum Corporation — Earnings Quality Grade F
SOLV · Healthcare
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 45 days, change -1 days YoY
AR growth -1.0% vs revenue growth 0.9%
Revenue 0.9%, CFFO -68.9%. Cash follows revenue
Expense Quality
Inventory 10.5% vs COGS 5.8%. Normal
CapEx growth -0.3% vs revenue 0.9%. Normal
SG&A/Gross Profit = 69.2%. Normal
Gross margin 53.5%, change -2.2pp. Stable
Cash Flow Quality
CFFO/NI = 0.24. Only 24% of profit backed by cash
FCF is negative ($-0.0B)
Accruals ratio = 8.3%. Elevated
Cash $0.9B covers only 17% of debt $5.0B
Balance Sheet Health
Goodwill+Intangibles $8.3B = 164% of equity. Over 50%
Interest coverage = 1.8x (<2x). Financial stress
Other assets grew 22.4% vs revenue 0.9%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -7% YoY. Normal
Manipulation Score
M-Score = -2.05 (grey zone)
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09