3M Company (MMM)

Return on assets (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
Net income (ttm) US$ in thousands -6,995,000 -7,399,000 -1,465,000 5,454,000 5,777,000 6,575,000 4,150,000 5,596,000 5,921,000 5,971,000 5,967,000 5,749,000 5,433,000 5,013,000 5,166,000 4,987,000 4,570,000 4,948,000 4,908,000 5,638,000
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
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $-6,995,000K ÷ $50,580,000K
= -13.83%

To analyze 3M Co.'s return on assets (ROA) based on the provided data, we can observe a fluctuating trend over the past eight quarters. The ROA values range from a low of -14.91% in Q3 2023 to a high of 14.24% in Q3 2022.

The negative ROA values in Q4 2023 and Q3 2023 indicate that the company's net income was insufficient relative to its total assets during those periods, which may be a cause for concern as it suggests a lack of profitability efficiency.

The positive ROA values observed in the remaining quarters, especially in Q2 2022 and Q3 2022, indicate that the company generated healthy profits relative to its total assets. This signifies more effective asset utilization and profitability during those quarters.

Overall, the varying ROA values suggest that 3M Co. has experienced fluctuations in its profitability and asset efficiency over the past two years. It would be essential for stakeholders to further investigate the factors contributing to these fluctuations to gain a deeper understanding of the company's financial performance.


Peer comparison

Dec 31, 2023


See also:

3M Company Return on Assets (ROA) (Quarterly Data)