Return on Assets (ROA)
since 2005
Calculation
3M Co., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income attributable to 3M1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 12.58% | = | 100 | × | 5,921) | ÷ | 47,072) |
| Dec 31, 2020 | 11.37% | = | 100 | × | 5,384) | ÷ | 47,344) |
| Dec 31, 2019 | 10.23% | = | 100 | × | 4,570) | ÷ | 44,659) |
| Dec 31, 2018 | 14.65% | = | 100 | × | 5,349) | ÷ | 36,500) |
| Dec 31, 2017 | 12.79% | = | 100 | × | 4,858) | ÷ | 37,987) |
| Dec 31, 2016 | 15.35% | = | 100 | × | 5,050) | ÷ | 32,906) |
| Dec 31, 2015 | 14.77% | = | 100 | × | 4,833) | ÷ | 32,718) |
| Dec 31, 2014 | 15.85% | = | 100 | × | 4,956) | ÷ | 31,269) |
| Dec 31, 2013 | 13.89% | = | 100 | × | 4,659) | ÷ | 33,550) |
| Dec 31, 2012 | 13.12% | = | 100 | × | 4,444) | ÷ | 33,876) |
| Dec 31, 2011 | 13.55% | = | 100 | × | 4,283) | ÷ | 31,616) |
| Dec 31, 2010 | 13.55% | = | 100 | × | 4,085) | ÷ | 30,156) |
| Dec 31, 2009 | 11.72% | = | 100 | × | 3,193) | ÷ | 27,250) |
| Dec 31, 2008 | 13.54% | = | 100 | × | 3,460) | ÷ | 25,547) |
| Dec 31, 2007 | 16.59% | = | 100 | × | 4,096) | ÷ | 24,694) |
| Dec 31, 2006 | 18.08% | = | 100 | × | 3,851) | ÷ | 21,294) |
| Dec 31, 2005 | 15.59% | = | 100 | × | 3,199) | ÷ | 20,513) |
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 financial performance from 2005 to 2021 is characterized by a consistent increase in both net income and total assets, although the efficiency of asset utilization has demonstrated significant volatility and a general long-term decline.
- Net Income Trends
- Net income attributable to the company grew from US$ 3,199 million in 2005 to US$ 5,921 million in 2021. This growth was not linear, as contractions were observed in 2008 and 2019, suggesting a susceptibility to macroeconomic cycles. Despite these fluctuations, the overall earnings trajectory remained positive over the seventeen-year period.
- Asset Base Expansion
- The total asset base expanded substantially, increasing from US$ 20,513 million in 2005 to US$ 47,072 million in 2021. A period of accelerated growth in assets occurred between 2017 and 2020, where the asset total rose from US$ 37,987 million to US$ 47,344 million.
- Return on Assets (ROA) Volatility
- ROA peaked at 18.08% in 2006 before experiencing a decline during the 2008-2009 period, reaching 11.72%. A recovery phase followed, with the ratio climbing back to 15.85% by 2014. However, a secondary downward trend emerged after 2014, culminating in a period low of 10.23% in 2019, before recovering slightly to 12.58% by 2021.
- Analysis of Operational Efficiency
- The data indicates a decoupling between asset growth and earnings growth. While net income increased by approximately 85% over the analyzed period, total assets increased by approximately 129%. This disproportionate growth in the asset base relative to net income contributed to the overall compression of the ROA, signaling a reduction in the efficiency with which the company generated profits from its investments.
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Comparison to Competitors
3M Co., ROA, long-term trends, comparison to competitors
| 3M Co. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 12.58% | -3.03% | 7.84% | 6.30% | -3.28% | 8.60% | 12.41% | 2.39% |
| Dec 31, 2020 | 11.37% | -7.80% | 3.83% | 4.43% | 2.25% | 7.40% | 13.47% | -2.17% |
| Dec 31, 2019 | 10.23% | -0.48% | 7.77% | 6.74% | -1.87% | 10.47% | 13.11% | 3.96% |
| Dec 31, 2018 | 14.65% | 8.91% | 7.83% | 6.90% | -7.23% | 11.71% | 11.24% | 3.93% |
| Dec 31, 2017 | 12.79% | 8.88% | 0.98% | 9.15% | -1.53% | 2.79% | 4.30% | 4.70% |
| Dec 31, 2016 | 15.35% | 5.44% | -0.09% | 6.32% | 2.42% | 8.88% | 11.09% | 5.64% |
| Dec 31, 2015 | 14.77% | 5.48% | 2.68% | 6.38% | -1.24% | 9.67% | 7.34% | 8.70% |
| Dec 31, 2014 | 15.85% | 5.49% | 4.36% | 5.35% | 2.35% | 9.33% | 9.75% | 6.81% |
| Dec 31, 2013 | 13.89% | 4.95% | 4.46% | 5.24% | 1.99% | 8.64% | 8.24% | 6.31% |
| Dec 31, 2012 | 13.12% | 4.39% | 6.36% | 3.39% | 1.99% | 6.99% | 7.10% | 5.74% |
| Dec 31, 2011 | 13.55% | 5.02% | 6.05% | 7.55% | 1.97% | 5.19% | 7.00% | 8.10% |
| Dec 31, 2010 | 13.55% | 4.82% | 4.22% | 5.38% | 1.55% | 5.34% | 8.34% | 7.48% |
| Dec 31, 2009 | 11.72% | 2.11% | 1.49% | 2.35% | 1.41% | 5.98% | 8.61% | 6.87% |
| Dec 31, 2008 | 13.54% | 4.97% | 5.25% | 6.35% | 2.18% | 7.87% | 9.62% | 8.30% |
| Dec 31, 2007 | 16.59% | 6.91% | 6.31% | 7.40% | 2.79% | 7.23% | 10.49% | 7.74% |
| Dec 31, 2006 | 18.08% | 4.28% | 6.95% | 8.32% | 2.99% | 6.73% | 8.96% | 7.92% |
| Dec 31, 2005 | 15.59% | 4.28% | 6.06% | 7.88% | 2.43% | 5.12% | 6.58% | 6.68% |
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), 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).
Comparison to Sector (Capital Goods)
3M Co., ROA, long-term trends, comparison to sector (capital goods)
| 3M Co. | Capital Goods | |
|---|---|---|
| Dec 31, 2021 | 12.58% | 1.86% |
| Dec 31, 2020 | 11.37% | 0.80% |
| Dec 31, 2019 | 10.23% | 2.72% |
| Dec 31, 2018 | 14.65% | 1.74% |
| Dec 31, 2017 | 12.79% | 1.83% |
| Dec 31, 2016 | 15.35% | 4.09% |
| Dec 31, 2015 | 14.77% | 2.17% |
| Dec 31, 2014 | 15.85% | 3.87% |
| Dec 31, 2013 | 13.89% | 3.45% |
| Dec 31, 2012 | 13.12% | 3.30% |
| Dec 31, 2011 | 13.55% | 3.30% |
| Dec 31, 2010 | 13.55% | 2.70% |
| Dec 31, 2009 | 11.72% | 2.16% |
| Dec 31, 2008 | 13.54% | 3.33% |
| Dec 31, 2007 | 16.59% | 3.89% |
| Dec 31, 2006 | 18.08% | 3.91% |
| Dec 31, 2005 | 15.59% | 3.25% |
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).
Comparison to Industry (Industrials)
3M Co., ROA, long-term trends, comparison to industry (industrials)
| 3M Co. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 12.58% | 3.40% |
| Dec 31, 2020 | 11.37% | 0.04% |
| Dec 31, 2019 | 10.23% | 2.56% |
| Dec 31, 2018 | 14.65% | 3.16% |
| Dec 31, 2017 | 12.79% | 3.59% |
| Dec 31, 2016 | 15.35% | 4.55% |
| Dec 31, 2015 | 14.77% | 3.52% |
| Dec 31, 2014 | 15.85% | 4.31% |
| Dec 31, 2013 | 13.89% | 3.91% |
| Dec 31, 2012 | 13.12% | 3.38% |
| Dec 31, 2011 | 13.55% | 3.69% |
| Dec 31, 2010 | 13.55% | 3.03% |
| Dec 31, 2009 | 11.72% | 2.24% |
| Dec 31, 2008 | 13.54% | 3.10% |
| Dec 31, 2007 | 16.59% | 3.87% |
| Dec 31, 2006 | 18.08% | 6.41% |
| Dec 31, 2005 | 15.59% | 1.42% |
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).