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