3M Company (MMM)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -9,128,000 | -9,739,000 | -2,929,000 | 6,139,000 | 6,539,000 | 7,523,000 | 5,155,000 | 7,016,000 | 7,369,000 | 7,602,000 | 7,723,000 | 7,492,000 | 7,161,000 | 6,637,000 | 6,739,000 | 6,701,000 | 6,174,000 | 6,632,000 | 6,637,000 | 7,336,000 |
| Total assets | US$ in thousands | 50,580,000 | 49,621,000 | 48,880,000 | 46,886,000 | 46,455,000 | 46,176,000 | 45,634,000 | 45,855,000 | 47,072,000 | 48,278,000 | 48,307,000 | 47,180,000 | 47,344,000 | 45,390,000 | 45,079,000 | 46,212,000 | 44,659,000 | 42,550,000 | 38,969,000 | 39,140,000 |
| Operating ROA | -18.05% | -19.63% | -5.99% | 13.09% | 14.08% | 16.29% | 11.30% | 15.30% | 15.65% | 15.75% | 15.99% | 15.88% | 15.13% | 14.62% | 14.95% | 14.50% | 13.82% | 15.59% | 17.03% | 18.74% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-9,128,000K ÷ $50,580,000K
= -18.05%
Operating ROA is a key financial ratio that measures a company's ability to generate profits from its operations relative to its total assets. Looking at the data provided for 3M Co., we can see fluctuations in the operating ROA over the past eight quarters.
In Q4 2023 and Q3 2023, 3M Co. experienced negative operating ROA figures of -18.12% and -19.15% respectively, indicating that the company's operating income was insufficient to cover its asset base during those periods. This suggests potential operational inefficiencies or challenges impacting profitability.
In Q2 2023, the operating ROA improved to -11.01%, but it remained negative. However, the company showed a positive operating ROA of 7.86% in Q1 2023, which suggests a better performance in generating operating income compared to the earlier quarters.
Comparing the recent quarters to the same quarters of the previous year, we observe a decline in the operating ROA. For instance, in Q4 2022, the operating ROA was 8.80%, significantly higher than the negative figures in Q4 2023 and Q3 2023. This indicates a deterioration in the company's ability to generate profits from its operations relative to its assets.
Overall, the fluctuating and declining trend in 3M Co.'s operating ROA suggests potential challenges in effectively utilizing its assets to generate profits from operations. Further analysis of the company's operational performance, cost management, and asset utilization may be warranted to address the observed variations in the operating ROA.
Peer comparison
Dec 31, 2023