3M Company (MMM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 43.46% | 43.86% | 43.93% | 43.11% | 43.81% | 44.35% | 44.51% | 45.95% | 46.84% | 47.67% | 48.36% | 48.36% | 48.41% | 47.84% | 47.61% | 47.65% | 46.68% | 47.23% | 47.58% | 48.20% |
| Operating profit margin | -27.93% | -29.74% | -8.86% | 18.36% | 19.10% | 21.64% | 14.69% | 19.86% | 20.84% | 21.52% | 22.23% | 22.73% | 22.25% | 20.93% | 21.49% | 20.72% | 19.21% | 20.74% | 20.66% | 22.68% |
| Pretax margin | -29.64% | -30.82% | -9.40% | 17.87% | 18.67% | 21.15% | 14.19% | 19.43% | 20.38% | 20.81% | 21.34% | 21.62% | 21.04% | 19.72% | 20.40% | 19.12% | 17.69% | 19.42% | 19.32% | 21.98% |
| Net profit margin | -21.40% | -22.59% | -4.43% | 16.31% | 16.88% | 18.91% | 11.83% | 15.84% | 16.75% | 16.90% | 17.18% | 17.44% | 16.88% | 15.81% | 16.48% | 15.42% | 14.22% | 15.48% | 15.27% | 17.43% |
3M Co.'s profitability ratios display fluctuating trends over the past eight quarters. The gross profit margin has been relatively stable, ranging from a low of 43.11% in Q1 2023 to a high of 45.95% in Q2 2022, indicating consistent performance in managing the cost of goods sold.
However, the operating profit margin and pretax margin have shown more volatility, with negative margins in recent quarters. The operating profit margin has deteriorated from a positive 19.86% in Q1 2022 to a negative 28.04% in Q4 2023. This suggests challenges in controlling operating expenses relative to revenue generation.
Similarly, the pretax margin has fluctuated widely, reaching a low of -30.77% in Q3 2023, highlighting the impact of operating inefficiencies and other factors on profitability before taxes.
The net profit margin, reflecting bottom-line profitability, has also experienced significant fluctuations, with negative margins in the past three quarters. A recovery in Q1 2023 to 16.31% indicates a partial turnaround, though the company still faces profitability challenges.
Overall, the analysis of profitability ratios indicates that while 3M Co. has maintained a relatively stable gross profit margin, its operating, pretax, and net profit margins have shown volatility and downward trends, signaling possible issues in cost management and operational efficiency that may require further investigation and corrective action.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | -13.83% | -14.91% | -3.00% | 11.63% | 12.44% | 14.24% | 9.09% | 12.20% | 12.58% | 12.37% | 12.35% | 12.19% | 11.48% | 11.04% | 11.46% | 10.79% | 10.23% | 11.63% | 12.59% | 14.40% |
| Return on total capital | -48.86% | -53.60% | -12.62% | 22.82% | 23.85% | 27.99% | 19.65% | 24.66% | 24.74% | 25.65% | 25.83% | 25.07% | 23.66% | 22.33% | 22.86% | 22.63% | 22.23% | 23.51% | 26.42% | 29.60% |
| Return on equity (ROE) | -145.52% | -158.37% | -18.79% | 35.65% | 39.24% | 46.70% | 30.20% | 37.48% | 39.35% | 41.29% | 41.30% | 41.78% | 42.22% | 42.20% | 47.58% | 49.15% | 45.41% | 46.23% | 48.68% | 58.11% |
The profitability ratios for 3M Co. exhibit a mixed performance trend over the past eight quarters.
The Operating return on assets (Operating ROA) has been volatile, with significant fluctuations ranging from negative values of -18.12% in Q4 2023 to positive values of 15.30% in Q1 2022. This indicates inconsistency in generating operating profits relative to the total assets employed in the business.
The Return on assets (ROA) also demonstrates variability, moving from negative values of -13.83% in Q4 2023 to positive values of 12.43% in Q4 2022. This ratio reflects the company's ability to generate profits from its total assets, with the recent quarters showing a downward trend in overall asset efficiency.
Return on total capital showcases substantial fluctuations, with negative values of -43.76% in Q4 2023 to positive values of 22.23% in Q1 2022. This ratio highlights the company's effectiveness in generating returns from both equity and debt capital invested in the business.
Finally, the Return on equity (ROE) also displays considerable variability, ranging from negative figures of -145.52% in Q4 2023 to positive values of 46.70% in Q3 2022. This ratio indicates the company's ability to generate profits from shareholders' equity, with recent quarters showing a declining trend in return on equity.
Overall, the profitability ratios for 3M Co. suggest a lack of consistent performance in utilizing assets and generating returns for shareholders over the analyzed period. Further in-depth analysis is recommended to determine the underlying factors contributing to these fluctuations in profitability.