3M Company (MMM)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -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 6,132,000 6,626,000 6,603,000 7,483,000
Long-term debt US$ in thousands 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 17,518,000 17,479,000 14,914,000 15,580,000
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
Return on total capital -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% 22.23% 23.51% 26.42% 29.60%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-8,744,000K ÷ ($13,088,000K + $4,807,000K)
= -48.86%

3M Co.'s return on total capital has fluctuated over the last eight quarters, as per the provided data. The return on total capital was negative in Q4 2023 and Q3 2023, indicating that the company's capital was not generating satisfactory returns during these periods. This is a concerning sign as it implies that the company's capital investments may not have been efficient.

In Q2 2023, the return on total capital improved but remained in negative territory at -22.56%, indicating some progress compared to the previous two quarters. However, it suggests that 3M Co. still faced challenges in generating returns on the total capital invested.

The return on total capital turned positive in Q1 2023, standing at 11.83%. This improvement is a positive sign, indicating that the company's capital investments started to generate returns above the cost of capital.

Looking back at the data from the previous quarters, 3M Co. had a consistently positive return on total capital in Q4 2022, Q3 2022, Q2 2022, and Q1 2022. However, the returns showed a decreasing trend during these quarters, indicating a potential decline in the company's ability to generate returns on its total capital.

Overall, the data suggests that 3M Co. experienced challenges in generating satisfactory returns on its total capital in recent quarters, with noticeable fluctuations and a mix of negative and positive returns. Further analysis is recommended to understand the underlying factors contributing to these fluctuations and to assess the company's capital allocation strategies and operational performance.


Peer comparison

Dec 31, 2023