3M Company (MMM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 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 | 10,063,000 | 10,702,000 | 10,083,000 | 9,703,000 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-6,995,000K ÷ $4,807,000K
= -145.52%
From the data provided, 3M Co.'s return on equity (ROE) has been quite volatile over the past eight quarters. The ROE has fluctuated significantly, ranging from a low of -158.39% in Q3 2023 to a high of 46.70% in Q3 2022.
The negative ROE figures in Q4 2023 and Q3 2023 indicate that the company experienced losses that exceeded its shareholders' equity during these quarters. This could be a red flag for investors as it suggests that the company's assets may not be generating sufficient profits.
The positive ROE figures in the other quarters, particularly the higher values in Q3 2022 and Q2 2022, suggest that 3M Co. was able to generate healthy returns on its shareholders' equity during these periods. A higher ROE indicates that the company is effectively utilizing its equity to generate profits for shareholders.
The significant variation in ROE over the quarters may indicate fluctuations in the company's profitability, financial leverage, or asset turnover. Investors and analysts should further investigate the reasons behind these fluctuations to assess the company's financial performance and sustainability.
Overall, the negative ROE figures raise concerns about 3M Co.'s financial health and operational efficiency, while the positive ROE figures indicate periods of stronger performance. Further analysis of the company's financial statements and operations is necessary to gain a deeper understanding of the factors driving these fluctuations in ROE.
Peer comparison
Dec 31, 2023