3M Company (MMM)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -9,128,000 | 6,539,000 | 7,369,000 | 7,161,000 | 6,174,000 |
| Revenue | US$ in thousands | 32,681,000 | 34,229,000 | 35,355,000 | 32,184,000 | 32,136,000 |
| Operating profit margin | -27.93% | 19.10% | 20.84% | 22.25% | 19.21% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-9,128,000K ÷ $32,681,000K
= -27.93%
The operating profit margin of 3M Co. has shown significant variability over the past five years. In 2023, the operating profit margin deteriorated to -28.04%, a sharp decline from the previous year's level of 11.94%. This negative operating margin indicates that the company's operating expenses exceeded its operating income, leading to a loss in profitability.
In contrast, the operating profit margins in 2021 and 2020 were healthier at 20.84% and 21.04% respectively, demonstrating the company's ability to generate a favorable level of operating income in relation to its revenue during those years. The slight decrease in 2021 compared to 2020 may suggest some challenges or increased expenses during that period.
Overall, the trend in operating profit margin for 3M Co. seems to be somewhat unstable, with fluctuations in profitability levels. Further analysis of the company's cost structure, revenue drivers, and financial performance would be beneficial to understand the factors influencing these fluctuations and to assess the company's operational efficiency and profitability going forward.
Peer comparison
Dec 31, 2023