Stock Analysis on Net

3M Co. (NYSE:MMM)

This company has been moved to the archive! The financial data has not been updated since October 25, 2022.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

3M Co., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Goodwill 13,486 13,802 13,444 10,051 10,513
Customer related intangible assets 4,216 4,280 4,316 2,291 2,332
Patents 513 537 538 542 561
Other technology-based intangible assets 2,111 2,114 2,124 576 583
Definite-lived tradenames 1,171 1,178 1,158 664 678
Other amortizable intangible assets 105 104 125 125 207
Finite-lived intangible assets, gross carrying amount 8,116 8,213 8,261 4,198 4,361
Accumulated amortization (3,481) (3,036) (2,520) (2,182) (2,073)
Finite-lived intangible assets, net 4,635 5,177 5,741 2,016 2,288
Non-amortizable intangible assets (primarily tradenames) 653 658 638 641 648
Intangible assets, net 5,288 5,835 6,379 2,657 2,936
Goodwill and intangible assets 18,774 19,637 19,823 12,708 13,449

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. 3M Co. goodwill increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
Intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. 3M Co. intangible assets, net decreased from 2019 to 2020 and from 2020 to 2021.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. 3M Co. goodwill and intangible assets decreased from 2019 to 2020 and from 2020 to 2021.

Adjustments to Financial Statements: Removal of Goodwill

3M Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 47,072 47,344 44,659 36,500 37,987
Less: Goodwill 13,486 13,802 13,444 10,051 10,513
Total assets (adjusted) 33,586 33,542 31,215 26,449 27,474
Adjustment to Total 3M Company Shareholders’ Equity
Total 3M Company shareholders’ equity (as reported) 15,046 12,867 10,063 9,796 11,563
Less: Goodwill 13,486 13,802 13,444 10,051 10,513
Total 3M Company shareholders’ equity (adjusted) 1,560 (935) (3,381) (255) 1,050

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


3M Co., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

3M Co., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Total Asset Turnover
Reported total asset turnover 0.75 0.68 0.72 0.90 0.83
Adjusted total asset turnover 1.05 0.96 1.03 1.24 1.15
Financial Leverage
Reported financial leverage 3.13 3.68 4.44 3.73 3.29
Adjusted financial leverage 21.53 26.17
Return on Equity (ROE)
Reported ROE 39.35% 41.84% 45.41% 54.60% 42.01%
Adjusted ROE 379.55% 462.67%
Return on Assets (ROA)
Reported ROA 12.58% 11.37% 10.23% 14.65% 12.79%
Adjusted ROA 17.63% 16.05% 14.64% 20.22% 17.68%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. 3M Co. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. 3M Co. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

3M Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net sales 35,355 32,184 32,136 32,765 31,657
Total assets 47,072 47,344 44,659 36,500 37,987
Activity Ratio
Total asset turnover1 0.75 0.68 0.72 0.90 0.83
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales 35,355 32,184 32,136 32,765 31,657
Adjusted total assets 33,586 33,542 31,215 26,449 27,474
Activity Ratio
Adjusted total asset turnover2 1.05 0.96 1.03 1.24 1.15

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 35,355 ÷ 47,072 = 0.75

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 35,355 ÷ 33,586 = 1.05

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. 3M Co. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 47,072 47,344 44,659 36,500 37,987
Total 3M Company shareholders’ equity 15,046 12,867 10,063 9,796 11,563
Solvency Ratio
Financial leverage1 3.13 3.68 4.44 3.73 3.29
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 33,586 33,542 31,215 26,449 27,474
Adjusted total 3M Company shareholders’ equity 1,560 (935) (3,381) (255) 1,050
Solvency Ratio
Adjusted financial leverage2 21.53 26.17

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 Financial leverage = Total assets ÷ Total 3M Company shareholders’ equity
= 47,072 ÷ 15,046 = 3.13

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total 3M Company shareholders’ equity
= 33,586 ÷ 1,560 = 21.53


Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to 3M 5,921 5,384 4,570 5,349 4,858
Total 3M Company shareholders’ equity 15,046 12,867 10,063 9,796 11,563
Profitability Ratio
ROE1 39.35% 41.84% 45.41% 54.60% 42.01%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to 3M 5,921 5,384 4,570 5,349 4,858
Adjusted total 3M Company shareholders’ equity 1,560 (935) (3,381) (255) 1,050
Profitability Ratio
Adjusted ROE2 379.55% 462.67%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROE = 100 × Net income attributable to 3M ÷ Total 3M Company shareholders’ equity
= 100 × 5,921 ÷ 15,046 = 39.35%

2 Adjusted ROE = 100 × Net income attributable to 3M ÷ Adjusted total 3M Company shareholders’ equity
= 100 × 5,921 ÷ 1,560 = 379.55%


Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to 3M 5,921 5,384 4,570 5,349 4,858
Total assets 47,072 47,344 44,659 36,500 37,987
Profitability Ratio
ROA1 12.58% 11.37% 10.23% 14.65% 12.79%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to 3M 5,921 5,384 4,570 5,349 4,858
Adjusted total assets 33,586 33,542 31,215 26,449 27,474
Profitability Ratio
Adjusted ROA2 17.63% 16.05% 14.64% 20.22% 17.68%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

1 ROA = 100 × Net income attributable to 3M ÷ Total assets
= 100 × 5,921 ÷ 47,072 = 12.58%

2 Adjusted ROA = 100 × Net income attributable to 3M ÷ Adjusted total assets
= 100 × 5,921 ÷ 33,586 = 17.63%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. 3M Co. adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.