Operating Profit Margin
since 2005
Calculation
3M Co., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 20.84% | = | 100 | × | 7,369) | ÷ | 35,355) |
| Dec 31, 2020 | 22.25% | = | 100 | × | 7,161) | ÷ | 32,184) |
| Dec 31, 2019 | 19.21% | = | 100 | × | 6,174) | ÷ | 32,136) |
| Dec 31, 2018 | 22.00% | = | 100 | × | 7,207) | ÷ | 32,765) |
| Dec 31, 2017 | 24.70% | = | 100 | × | 7,820) | ÷ | 31,657) |
| Dec 31, 2016 | 23.99% | = | 100 | × | 7,223) | ÷ | 30,109) |
| Dec 31, 2015 | 22.94% | = | 100 | × | 6,946) | ÷ | 30,274) |
| Dec 31, 2014 | 22.42% | = | 100 | × | 7,135) | ÷ | 31,821) |
| Dec 31, 2013 | 21.59% | = | 100 | × | 6,666) | ÷ | 30,871) |
| Dec 31, 2012 | 21.68% | = | 100 | × | 6,483) | ÷ | 29,904) |
| Dec 31, 2011 | 20.86% | = | 100 | × | 6,178) | ÷ | 29,611) |
| Dec 31, 2010 | 22.20% | = | 100 | × | 5,918) | ÷ | 26,662) |
| Dec 31, 2009 | 20.82% | = | 100 | × | 4,814) | ÷ | 23,123) |
| Dec 31, 2008 | 20.65% | = | 100 | × | 5,218) | ÷ | 25,269) |
| Dec 31, 2007 | 25.32% | = | 100 | × | 6,193) | ÷ | 24,462) |
| Dec 31, 2006 | 24.85% | = | 100 | × | 5,696) | ÷ | 22,923) |
| Dec 31, 2005 | 23.66% | = | 100 | × | 5,009) | ÷ | 21,167) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The analysis of operational performance from 2005 to 2021 reveals a period of consistent revenue growth accompanied by fluctuations in operational efficiency. While net sales increased from US$ 21,167 million in 2005 to US$ 35,355 million by 2021, the operating profit margin exhibited cyclical volatility, generally oscillating between 19% and 25%.
- Initial Growth and First Significant Contraction (2005–2008)
- Operating profit margins trended upward from 23.66% in 2005 to a peak of 25.32% in 2007. This growth was abruptly reversed in 2008, as the margin dropped to 20.65%. During this transition, operating income declined from US$ 6,193 million to US$ 5,218 million, despite net sales continuing to rise from US$ 24,462 million to US$ 25,269 million.
- Stabilization and Secondary Peak (2009–2017)
- Following the 2008 decline, margins entered a period of relative stability, fluctuating between 20.8% and 22.4% from 2009 through 2014. A subsequent recovery phase occurred between 2015 and 2017, during which the operating profit margin climbed from 22.94% to 24.70%. This period culminated in the highest recorded operating income of US$ 7,820 million in 2017.
- Recent Margin Compression and Volatility (2018–2021)
- A sharp downward trend is observed starting in 2018, with the operating profit margin falling to its lowest point in the analyzed series at 19.21% in 2019. While there was a recovery to 22.25% in 2020, the margin contracted again to 20.84% in 2021. This indicates that although net sales reached an all-time high of US$ 35,355 million in 2021, the company's ability to convert sales into operating profit has diminished relative to the peaks seen in 2007 and 2017.
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Comparison to Competitors
3M Co., operating profit margin, long-term trends, comparison to competitors
| 3M Co. | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 20.84% | -4.66% | 14.27% | 13.61% | 7.70% |
| Dec 31, 2020 | 22.25% | -21.95% | 11.67% | 13.22% | -3.34% |
| Dec 31, 2019 | 19.21% | -2.58% | 16.33% | 14.29% | 11.64% |
| Dec 31, 2018 | 22.00% | 11.85% | 16.00% | 13.64% | 12.86% |
| Dec 31, 2017 | 24.70% | 11.01% | 10.32% | 11.60% | 14.49% |
| Dec 31, 2016 | 23.99% | 6.17% | 1.39% | 11.74% | 14.28% |
| Dec 31, 2015 | 22.94% | 7.74% | 7.38% | 11.78% | 13.00% |
| Dec 31, 2014 | 22.42% | 8.23% | 10.22% | 12.26% | 15.01% |
| Dec 31, 2013 | 21.59% | 7.58% | 10.68% | 9.93% | 14.70% |
| Dec 31, 2012 | 21.68% | 7.72% | 13.59% | 9.40% | 13.32% |
| Dec 31, 2011 | 20.86% | 8.50% | 12.46% | 8.56% | 13.92% |
| Dec 31, 2010 | 22.20% | 7.73% | 9.94% | 8.94% | 13.23% |
| Dec 31, 2009 | 20.82% | 3.07% | 1.95% | 9.88% | 12.33% |
| Dec 31, 2008 | 20.65% | 6.49% | 9.26% | 12.01% | 13.14% |
| Dec 31, 2007 | 25.32% | 8.78% | 11.73% | 10.81% | 13.08% |
| Dec 31, 2006 | 24.85% | 4.90% | 12.66% | 9.98% | 12.94% |
| Dec 31, 2005 | 23.66% | 5.13% | 11.13% | 8.02% | 12.26% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).