3M Company (MMM)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	4,173,000	-6,995,000	5,777,000	5,921,000	5,449,000
Total assets	US$ in thousands	39,868,000	50,580,000	46,455,000	47,072,000	47,344,000
ROA		10.47%	-13.83%	12.44%	12.58%	11.51%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $4,173,000K ÷ $39,868,000K
= 10.47%

The return on assets (ROA) of 3M Company has shown fluctuations over the past five years. In December 31, 2020, the ROA stood at 11.51%, indicating that the company generated 11.51 cents of profit for every dollar of assets. Subsequently, there was a slight increase to 12.58% by December 31, 2021, suggesting improved efficiency in asset utilization.

However, there was a slight decrease in ROA to 12.44% by December 31, 2022, which could be attributed to changes in the company's profitability and asset base. The most concerning year was December 31, 2023, where the ROA turned negative at -13.83%. This could indicate that the company incurred losses relative to its asset base during that period, which could be a red flag for investors.

Fortunately, by December 31, 2024, the ROA recovered to 10.47%, although it didn't reach the levels seen in 2021 and 2022. Overall, these fluctuations in ROA suggest that 3M Company's ability to generate profits from its assets has varied over the years, highlighting the importance of closely monitoring the company's financial performance and asset management strategies.