3M Company (MMM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,689,000 | 5,984,000 | 2,116,000 | -8,435,000 | -8,744,000 | -9,406,000 | -2,618,000 | 6,446,000 | 6,851,000 | 7,817,000 | 5,456,000 | 7,333,000 | 7,694,000 | 7,861,000 | 7,935,000 | 7,665,000 | 7,299,000 | 6,767,000 | 6,888,000 | 6,651,000 |
| Long-term debt | US$ in thousands | 11,125,000 | 11,319,000 | 11,781,000 | 20,593,000 | 13,088,000 | 12,876,000 | 12,954,000 | 12,948,000 | 14,001,000 | 13,849,000 | 14,019,000 | 14,801,000 | 16,056,000 | 16,193,000 | 16,267,000 | 16,819,000 | 17,989,000 | 18,429,000 | 19,276,000 | 19,247,000 |
| 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 |
| Return on total capital | 38.01% | 37.49% | 13.48% | -33.13% | -48.86% | -53.60% | -12.62% | 22.82% | 23.85% | 27.99% | 19.65% | 24.66% | 24.74% | 25.65% | 25.83% | 25.07% | 23.66% | 22.33% | 22.86% | 22.63% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,689,000K ÷ ($11,125,000K + $3,842,000K)
= 38.01%
The return on total capital for 3M Company has shown fluctuations over the period provided. Starting at 22.63% in March 2020, the return saw a steady increase reaching a peak of 27.99% in September 2022. However, there was a significant decline in the subsequent periods, with negative returns recorded in March 2023 to December 2023.
The return rebounded strongly in the following quarters, hitting highs of 37.49% in September 2024 and 38.01% in December 2024. These fluctuations suggest that 3M Company's efficiency in generating returns from its total capital has been volatile, indicating potential shifts in the company's financial performance and capital deployment strategies during the period under review.
Peer comparison
Dec 31, 2024