Stock Analysis on Net
Stock Analysis on Net

3M Co. (NYSE:MMM)

$22.49

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

Common-Size Income Statement
Quarterly Data

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3M Co., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: 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 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Research, development and related expenses
Gain on business divestitures
Operating income
Other income (expense), net
Income before income taxes
Provision for income taxes
Income of consolidated group
Income (loss) from unconsolidated subsidiaries, net of taxes
Net income including noncontrolling interest
Net (income) loss attributable to noncontrolling interest
Net income attributable to 3M

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).

Gross Profit Margin Trend
The gross profit margin demonstrated variability with a general downward trend beginning in early 2019. After maintaining near 49-50% levels through 2017 and 2018, it declined to the mid-to-low 40% range during 2019-2022, reaching a notable low of approximately 41.47% in late 2022. This indicates an increasing cost pressure or pricing challenges over the period.
Cost of Sales Variation
The cost of sales as a percentage of net sales fluctuated but showed an increasing trend, especially from 2019 onward. Costs rose from around 50-51% in the earlier years to peaks beyond 54% and even reaching near 58.5% in mid-2022, reflecting increased production or procurement costs that eroded gross margins.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses generally ranged between approximately 18% and 22% of net sales, though with significant fluctuations. Notably, there were spikes around early 2018 and mid-2022 where SG&A surged dramatically to above 30%, suggesting occasional elevated operating expenditures likely related to restructuring, investments, or other exceptional items.
Research and Development Expenses
R&D expenses remained relatively stable, fluctuating modestly between about 5.2% and 6.6% of net sales. This steadiness indicates a consistent investment in innovation and product development despite changes in other operating costs.
Operating Income Trends
Operating income showed variability ranging from lows around 12-14% of net sales to highs over 27% during 2017-2018. There was a noticeable decline in 2020, likely impacted by external factors affecting profitability, but it partially recovered afterward. The exceptional spike to over 48% in late 2022 appears anomalous and coincides with a significant gain on business divestitures.
Gains on Business Divestitures
Gains on business divestitures were generally low or absent in most quarters but featured major spikes in some periods notably in mid-2017 and late 2022. The surge to over 31% in late 2022 is a key driver of the unusually high operating and net income in that quarter, indicating significant one-time disposal gains boosting profitability metrics.
Income Before Taxes and Provision for Taxes
Income before income taxes tracked closely with operating income, showing declines and recoveries consistent with operating trends. Tax provisions showed variability but lacked a pronounced trend, occasionally turning positive, which suggests adjustments or benefits influencing tax expense recognition.
Net Income Attributable to Company
Net income as a percent of net sales mostly followed operating income movements, with peaks near 20% and troughs near 6%. A sharp drop was observed in the early 2020 quarter, followed by recovery in ensuing quarters. The extraordinary jump to nearly 45% in late 2022 reflects the impact of divestiture gains and improved operational profitability.
Other Income (Expense), Net
Other income and expense items mostly represented minor negative adjustments to overall profitability throughout the periods. There were episodic increases in expense, such as a notable impact in mid-2019, which slightly reduced overall income but did not significantly alter trends.
Summary of Profitability and Cost Management
The data reflect sustained pressure on gross margins driven by rising costs of sales and variable SG&A expenses. Despite consistent R&D spend, operating profitability was challenged in several periods, mitigated in part by gains on divestitures. Extraordinary items had significant influence on quarterly results, particularly in late 2022. Overall, the company faced margin compression but maintained adaptive operational management to sustain positive net income levels across most periods.