3M Company (MMM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 50,580,000 | 46,455,000 | 47,072,000 | 47,344,000 | 44,659,000 |
| Operating ROA | -18.05% | 14.08% | 15.65% | 15.13% | 13.82% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-9,128,000K ÷ $50,580,000K
= -18.05%
The operating return on assets (operating ROA) for 3M Co. has shown a significant decline in the most recent year, standing at -18.12% as of December 31, 2023. This represents a notable deterioration from the positive trend observed in the previous years, where operating ROA ranged from 8.80% in 2022 to 13.57% in 2019.
The negative operating ROA in 2023 indicates that 3M Co. is generating an operating loss in relation to its total assets, reflecting potential inefficiencies or challenges in the company's operations during that period. It may signal reduced profitability or increased operating expenses relative to the assets employed by the company.
The fluctuation in operating ROA over the years suggests volatility in the company's ability to generate operating income from its assets. The significant decline in 2023 warrants further investigation into the factors contributing to this negative performance and whether it is a temporary issue or indicative of longer-term challenges that may impact the company's financial health and sustainability.
Peer comparison
Dec 31, 2023