3M Company (MMM)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 4,977,000 | -9,686,000 | 6,389,000 | 7,206,000 | 6,786,000 |
| Revenue | US$ in thousands | 24,575,000 | 24,610,000 | 34,229,000 | 35,355,000 | 32,184,000 |
| Pretax margin | 20.25% | -39.36% | 18.67% | 20.38% | 21.09% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $4,977,000K ÷ $24,575,000K
= 20.25%
3M Company's pretax margin has shown some fluctuations over the past five years. In December 2020, the pretax margin stood at 21.09%, reflecting a healthy profitability level. However, there was a slight decline in profitability by the end of 2021, with the pretax margin dropping to 20.38%. The trend continued in 2022, with a further decrease in the pretax margin to 18.67%.
A notable anomaly occurred in December 2023, where the pretax margin reported a negative figure of -39.36%. This negative pretax margin indicates that the company's pre-tax income was insufficient to cover its operating costs, which is a concerning sign for investors and stakeholders. However, there was a significant recovery in profitability by the end of 2024, as the pretax margin rebounded to 20.25%.
Overall, 3M Company's pretax margin has shown variability in recent years, with periods of both strength and weakness. It is essential for the company to closely monitor and manage its operating expenses and revenue generation to sustain a healthy level of profitability in the future.
Peer comparison
Dec 31, 2024