3M Company (MMM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 4,822,000 | -10,689,000 | 6,539,000 | 7,369,000 | 7,161,000 |
| Total assets | US$ in thousands | 39,868,000 | 50,580,000 | 46,455,000 | 47,072,000 | 47,344,000 |
| Operating ROA | 12.09% | -21.13% | 14.08% | 15.65% | 15.13% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,822,000K ÷ $39,868,000K
= 12.09%
The operating return on assets (Operating ROA) of 3M Company has shown fluctuations over the past five years, as per the provided data.
At the end of December 31, 2020, the Operating ROA was 15.13%, indicating that the company generated $0.1513 in operating income for every dollar of assets it had. This ratio improved slightly to 15.65% by December 31, 2021, suggesting that the company was able to increase its operating income relative to its asset base.
However, by December 31, 2022, the Operating ROA decreased to 14.08%, signifying a slight decline in the company's operating efficiency in generating profits from its assets. The trend took a significant downturn by December 31, 2023, as the Operating ROA turned negative to -21.13%, implying that the company incurred operating losses exceeding the asset base in that period.
Nevertheless, by December 31, 2024, the Operating ROA rebounded to 12.09%, indicating a partial recovery in the company's ability to generate operating income from its assets.
Overall, the Operating ROA of 3M Company has displayed variability over the years, with the company experiencing both improvements and setbacks in its operational efficiency and profitability.
Peer comparison
Dec 31, 2024