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.

Return on Equity (ROE)
since 2005

Microsoft Excel

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Calculation

3M Co., ROE, long-term trends, calculation

Microsoft Excel
ROE = 100 × Net income attributable to 3M1 ÷ Total 3M Company shareholders’ equity1
Dec 31, 2021 = 100 × ÷
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Dec 31, 2013 = 100 × ÷
Dec 31, 2012 = 100 × ÷
Dec 31, 2011 = 100 × ÷
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Dec 31, 2007 = 100 × ÷
Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

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

Net Income Attributable to 3M
The net income showed a generally upward trajectory from 2005 to 2021, rising from $3,199 million to $5,921 million. Despite this long-term increase, there were periods of fluctuation. For instance, net income decreased from 2007 to 2009, from $4,096 million to $3,193 million, reflecting a notable dip. From 2010 onwards, net income mostly maintained a positive trend with some minor declines in certain years, such as in 2015 and 2017. The most significant growth phases occurred between 2013 and 2014 and again between 2018 and 2021.
Total 3M Company Shareholders' Equity
Shareholders’ equity displayed volatility over the period. Starting at $10,100 million in 2005, it peaked at $17,575 million in 2012 before experiencing substantial declines from 2013 to 2016, reaching a low of $9,796 million in 2018. Subsequently, equity rebounded to $15,046 million by 2021. This pattern suggests episodes of equity reductions possibly linked to company buybacks, dividend payments, or impairment charges, followed by periods of recovery.
Return on Equity (ROE)
The return on equity exhibited strong levels throughout the years, indicating robust profitability relative to shareholder investment. ROE started at 31.67% in 2005, with a peak at 54.60% in 2018. However, this high ROE in 2018 coincided with a trough in shareholders’ equity, implying that reduced equity may have artificially inflated ROE. Overall, ROE fluctuated but maintained values above 25%, reaching notable highs above 40% in several years, emphasizing effective capital utilization despite fluctuations in net income and equity.
Overall Analysis
The data reveals that profitability, as measured by net income and ROE, improved over the long term despite short-term challenges. Fluctuations in shareholders’ equity suggest strategic capital management decisions impacting this metric. The high ROE in recent years, coupled with lower equity values, indicates that the company sustained strong earnings while managing its equity base tightly. The combined trends suggest a company capable of maintaining robust earnings and efficient capital use, albeit with periods of capital base adjustments.

Comparison to Competitors

3M Co., ROE, long-term trends, comparison to competitors

Microsoft Excel
3M Co. Boeing Co. Caterpillar Inc. Eaton Corp. plc GE Aerospace Honeywell International Inc. Lockheed Martin Corp. RTX Corp.
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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., ROE, long-term trends, comparison to sector (capital goods)

Microsoft Excel
3M Co. Capital Goods
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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., ROE, long-term trends, comparison to industry (industrials)

Microsoft Excel
3M Co. Industrials
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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).