3M Company (MMM)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 10,128,000 | 14,204,000 | 14,997,000 | 16,560,000 | 15,579,000 |
| Revenue | US$ in thousands | 24,575,000 | 24,610,000 | 34,229,000 | 35,355,000 | 32,184,000 |
| Gross profit margin | 41.21% | 57.72% | 43.81% | 46.84% | 48.41% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $10,128,000K ÷ $24,575,000K
= 41.21%
The gross profit margin of 3M Company has experienced fluctuations over the years. As of December 31, 2020, it stood at 48.41%, indicating that the company was able to generate 48.41 cents of gross profit from each dollar of revenue. However, by the end of December 31, 2021, the gross profit margin had decreased to 46.84%, suggesting a slight decline in the company's ability to maintain its gross profit levels relative to sales.
The trend continued into December 31, 2022, with a further decline in the gross profit margin to 43.81%, signaling potential challenges in managing production costs or pricing strategies. Interestingly, there was a significant improvement in the gross profit margin by December 31, 2023, reaching 57.72%, which could indicate enhanced operational efficiency, pricing power, or a shift in product mix that boosted profitability.
However, this improvement was not sustained, as by December 31, 2024, the gross profit margin dropped to 41.21%. This decline may raise concerns about the company's ability to maintain profitability amidst changing market conditions or cost pressures. Overall, the fluctuations in 3M Company's gross profit margin highlight the importance of closely monitoring operational performance and cost management strategies to ensure sustainable profitability.
Peer comparison
Dec 31, 2024