3M Co (NYSE:MMM) ROA %

: 4.67% (As of Dec. 2022)

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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. 3M Co's annualized Net Income for the quarter that ended in Dec. 2022 was $2,164 Mil. 3M Co's average Total Assets over the quarter that ended in Dec. 2022 was $46,316 Mil. Therefore, 3M Co's annualized ROA % for the quarter that ended in Dec. 2022 was 4.67%.

The historical rank and industry rank for 3M Co's ROA % or its related term are showing as below:

MMM' s ROA % Range Over the Past 10 Years
Min: 11.13 Med: 13.77 Max: 15.35
Current: 12.49

During the past 13 years, 3M Co's highest ROA % was 15.35%. The lowest was 11.13%. And the median was 13.77%.

MMM's ROA % is ranked better than
92.79% of 513 companies
in the Conglomerates industry
Industry Median: 2.53 vs MMM: 12.49

3M Co ROA % Historical Data

The historical data trend for 3M Co's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

3M Co Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROA %

14.36

11.13

11.85

12.54

12.35

3M Co Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
ROA %																11.23	11.18	0.68	33.63	4.67

Competitive Comparison

For the Conglomerates subindustry, 3M Co's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

3M Co ROA % Distribution

For the Conglomerates industry and Industrials sector, 3M Co's ROA % distribution charts can be found below:

* The bar in red indicates where 3M Co's ROA % falls in comparison to its industry or sector. The grey bar indicates the ROA %'s extreme value range as defined by GuruFocus.

3M Co ROA % Calculation

3M Co's annualized ROA % for the fiscal year that ended in Dec. 2022 is calculated as:

ROA %	=	Net Income (A: Dec. 2022 )	/	( (Total Assets (A: Dec. 2021 )	+	Total Assets (A: Dec. 2022 ))	/ count )
	=	5777	/	( (47072	+	46455)	/ 2 )
	=	5777	/	46763.5
	=	12.35 %

3M Co's annualized ROA % for the quarter that ended in Dec. 2022 is calculated as:

ROA %	=	Net Income (Q: Dec. 2022 )	/	( (Total Assets (Q: Sep. 2022 )	+	Total Assets (Q: Dec. 2022 ))	/ count )
	=	2164	/	( (46176	+	46455)	/ 2 )
	=	2164	/	46315.5
	=	4.67 %

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Dec. 2022) net income data. ROA % is displayed in the 30-year financial page.

3M Co (NYSE:MMM) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

	ROA %		(Q: Dec. 2022 )
=	Net Income	/	Total Assets
=	2164	/	46315.5
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(2164 / 32316)	*	(32316 / 46315.5)
=	Net Margin %	*	Asset Turnover
=	6.7 %	*	0.6977
=	4.67 %

Note: The Net Income data used here is four times the quarterly (Dec. 2022) net income data. The Revenue data used here is four times the quarterly (Dec. 2022) revenue data.

Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.

3M Co ROA % Related Terms

Thank you for viewing the detailed overview of 3M Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.

3M Co (NYSE:MMM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » 3M Co (NYSE:MMM) » Definitions » ROA %

Comparable Companies

Traded in Other Exchanges

MMM:Mexico MMM:Germany MMM:Switzerland MMMC34:Brazil MMM:Austria MMM:Argentina

Address

3M Center, St. Paul, MN, USA, 55144

Website

https://www.3m.com

3M is a multinational conglomerate that has operated since 1902, when it was known as Minnesota Mining and Manufacturing. The company is well known for its research and development laboratory and it leverages its science and technology across multiple product categories. As of 2020, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. Nearly 50% of the company's revenue comes from outside the Americas, with the safety and industrial segment constituting a plurality of net sales. Many of the company's 60,000-plus products touch and concern a variety of consumers and end markets.

Executives

Suzan Kereere	director	255 FISERV DRIVE, BROOKFIELD WI 53045
Kevin H Rhodes	officer: EVP & Chief Legal Officer	3M COMPANY, 3M CENTER, BLDG 220-09-E-02, ST. PAUL MN 55144-1000
Peter D Gibbons	officer: Group President	2401 UTAH AVENUE SOUTH, SUITE 800, SEATTLE WA 98134
Chavez Rodriguez Beatriz Karina	officer: Senior Vice President	3M COMPANY, 3M CENTER BLDG 220-09-E-02, ST. PAUL MN 55144-1000
Mark W. Murphy	officer: Executive Vice President	ONE ST. JUDE MEDICAL DRIVE, ST. PAUL MN 55117
Zoe L Dickson	officer: Executive Vice President	3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
James R Fitterling	director	2211 H.H. DOW WAY, MIDLAND MI 48674
Jeffrey R Lavers	officer: Executive Vice President	3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Veena M Lakkundi	officer: Senior Vice President	3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Monish D Patolawala	officer: Senior VP and CFO	3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Vinita Lee Piper	other: IVM001	712 WILCREST, SUITE 3020, HOUSTON TX 77042
Pamela Craig	director	C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601
Ty R Silberhorn	officer: Senior Vice President	3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Theresa E Reinseth	officer: Vice President/CAO	3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Denise R Rutherford	officer: Senior Vice President	3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000