3M Company (MMM)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 14,204,000 | 14,997,000 | 16,560,000 | 15,579,000 | 15,000,000 |
| Revenue | US$ in thousands | 32,681,000 | 34,229,000 | 35,355,000 | 32,184,000 | 32,136,000 |
| Gross profit margin | 43.46% | 43.81% | 46.84% | 48.41% | 46.68% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $14,204,000K ÷ $32,681,000K
= 43.46%
The analysis of 3M Co.'s gross profit margin reveals a declining trend over the past five years. The company's gross profit margin decreased from 46.68% in 2019 to 43.46% in 2023. This decline indicates that the company's cost of goods sold relative to its revenue has been increasing during this period.
The gross profit margin for 2023 is the lowest in the five-year period, signifying potential challenges in maintaining profitability and controlling production costs. It is important for 3M Co. to closely monitor its cost structure and pricing strategies to improve its gross profit margin and overall financial performance in the future.
Peer comparison
Dec 31, 2023