3M Company (MMM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,822,000 | -8,744,000 | 6,851,000 | 7,694,000 | 7,315,000 |
| Long-term debt | US$ in thousands | 11,125,000 | 13,088,000 | 14,001,000 | 16,056,000 | 17,989,000 |
| Total stockholders’ equity | US$ in thousands | 3,842,000 | 4,807,000 | 14,722,000 | 15,046,000 | 12,867,000 |
| Return on total capital | 32.22% | -48.86% | 23.85% | 24.74% | 23.71% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,822,000K ÷ ($11,125,000K + $3,842,000K)
= 32.22%
Analyzing 3M Company's return on total capital from December 31, 2020, to December 31, 2024, reveals fluctuations in performance. The return on total capital increased steadily from 23.71% in 2020 to 24.74% in 2021, indicating improved efficiency in utilizing capital for generating profits. In 2022, the return on total capital slightly decreased to 23.85%, still indicating a relatively strong performance.
However, a significant decline was observed in 2023, with the return on total capital plummeting to -48.86%. This negative return suggests that the company may have incurred losses greater than the capital invested during that period, possibly due to operational challenges or write-downs.
The performance bounced back impressively in 2024, with a notable increase in the return on total capital to 32.22%. This significant improvement indicates a robust recovery and effectiveness in utilizing the capital to generate profits efficiently.
Overall, the analysis of 3M Company's return on total capital demonstrates variability in performance over the years, showcasing both strengths and challenges in capital utilization and profitability.
Peer comparison
Dec 31, 2024