3M Company (MMM)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 4,173,000 | 4,390,000 | 943,000 | -7,043,000 | -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 |
| Total stockholders’ equity | US$ in thousands | 3,842,000 | 4,642,000 | 3,916,000 | 4,866,000 | 4,807,000 | 4,672,000 | 7,798,000 | 15,298,000 | 14,722,000 | 14,080,000 | 13,742,000 | 14,930,000 | 15,046,000 | 14,460,000 | 14,448,000 | 13,760,000 | 12,867,000 | 11,880,000 | 10,857,000 | 10,147,000 |
| ROE | 108.62% | 94.57% | 24.08% | -144.74% | -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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,173,000K ÷ $3,842,000K
= 108.62%
The return on equity (ROE) of 3M Company has exhibited fluctuations over the past few years.
- In the first half of 2020, the ROE was around 47%-49%, indicating that for every dollar of shareholders' equity, the company generated 47%-49% in profits.
- However, by the end of 2020 and into early 2021, the ROE declined slightly to the low 40% range.
- Throughout 2021 and early 2022, the ROE continued to decrease, dropping to the high 30% range and then to 30.20% in June 2022.
- The ROE experienced a drastic decline in the following quarters, reaching negative values in September 2023 and onwards, indicating that the company was generating losses in relation to shareholders' equity.
- The negative trend reversed by the end of 2024, with a significant rebound in ROE to over 100%.
Overall, the ROE trend suggests fluctuations in profitability and efficiency in utilizing shareholders' equity over the years, with periods of strong performance followed by challenges. Further analysis would be essential to understand the factors driving these fluctuations and to assess the company's long-term financial health.
Peer comparison
Dec 31, 2024