3M Company (MMM)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 5,174,000 | 5,332,000 | 920,000 | -9,710,000 | -9,970,000 | -10,581,000 | -3,329,000 | 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 |
| Total assets | US$ in thousands | 39,868,000 | 40,875,000 | 43,377,000 | 55,243,000 | 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 |
| Operating ROA | 12.98% | 13.04% | 2.12% | -17.58% | -19.71% | -21.32% | -6.81% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $5,174,000K ÷ $39,868,000K
= 12.98%
The operating return on assets (operating ROA) of 3M Company has shown fluctuations over the period from March 31, 2020, to December 31, 2024. Initially, the operating ROA increased steadily from 14.50% in March 2020 to a peak of 15.99% in June 2021, indicating efficient utilization of assets to generate operating income.
However, there was a decline in the operating ROA starting from June 30, 2022, where it dropped to 11.30% and further decreased to negative values in subsequent quarters, hitting the lowest point of -21.32% in September 30, 2023. These negative values suggest that 3M Company's operating income generated in relation to its assets turned negative, pointing towards operational challenges or inefficiencies during this period.
Subsequently, there was a recovery in the operating ROA, with a positive trend observed from June 30, 2024, onwards. The operating ROA increased to 13.04% by September 30, 2024, and maintained a level of around 13% in the following quarters, signaling a rebound in operational performance and asset efficiency.
Throughout the period, it is essential to closely monitor the operating ROA to assess the company's ability to generate profits from its assets efficiently. The fluctuations in the operating ROA should be analyzed in conjunction with other financial metrics and contextual factors to understand the underlying reasons for the changes and evaluate the overall financial health and operational effectiveness of 3M Company.
Peer comparison
Dec 31, 2024