.Adjusted Ratios
Difficulty: Advanced
.
Adjusted Ratios (Summary)
3M Co., adjusted ratios
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Activity | ||||||
| Total Asset Turnover | ||||||
| | Reported | |||||
| | Adjusted | |||||
| Liquidity | ||||||
| Current Ratio | ||||||
| | Reported | |||||
| | Adjusted | |||||
| Solvency | ||||||
| Debt to Equity | ||||||
| | Reported | |||||
| | Adjusted | |||||
| Debt to Capital | ||||||
| | Reported | |||||
| | Adjusted | |||||
| Financial Leverage | ||||||
| | Reported | |||||
| | Adjusted | |||||
| Profitability | ||||||
| Net Profit Margin | ||||||
| | Reported | % | % | % | % | % |
| | Adjusted | % | % | % | % | % |
| Return on Equity (ROE) | ||||||
| | Reported | % | % | % | % | % |
| | Adjusted | % | % | % | % | % |
| Return on Assets (ROA) | ||||||
| | Reported | % | % | % | % | % |
| | Adjusted | % | % | % | % | % |
| Ratio | Description | The company |
|---|---|---|
| Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | 3M Co.'s adjusted total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. | 3M Co.'s adjusted current ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
| Adjusted debt-to-equity ratio | A solvency ratio calculated as adjusted total debt divided by adjusted total equity. | 3M Co.'s adjusted debt-to-equity ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Adjusted debt-to-capital ratio | A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. | 3M Co.'s adjusted debt-to-capital ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Adjusted financial leverage | A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
3M Co.'s adjusted financial leverage increased from 2015 to 2016 and from 2016 to 2017. |
| Adjusted net profit margin | An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. | 3M Co.'s adjusted net profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| Adjusted ROE | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. | 3M Co.'s adjusted ROE improved from 2015 to 2016 and from 2016 to 2017. |
| Adjusted ROA | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. | 3M Co.'s adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
Adjusted Total Asset Turnover
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Reported | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Net sales | |||||
| | Total assets | |||||
| Ratio | ||||||
| | Total asset turnover1 | |||||
| Adjusted | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Adjusted net sales2 | |||||
| | Adjusted total assets3 | |||||
| Ratio | ||||||
| | Adjusted total asset turnover4 | |||||
2017 Calculations
1 Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Adjusted net sales. See Details »
3 Adjusted total assets. See Details »
4 Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Adjusted total asset turnover | An activity ratio calculated as total revenue divided by adjusted total assets. | 3M Co.'s adjusted total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017. |
Adjusted Current Ratio
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Reported | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Current assets | |||||
| | Current liabilities | |||||
| Ratio | ||||||
| | Current ratio1 | |||||
| Adjusted | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Adjusted current assets2 | |||||
| | Adjusted current liabilities3 | |||||
| Ratio | ||||||
| | Adjusted current ratio4 | |||||
2017 Calculations
1 Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Adjusted current assets. See Details »
3 Adjusted current liabilities. See Details »
4 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. | 3M Co.'s adjusted current ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
Adjusted Debt to Equity
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Reported | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Total debt | |||||
| | Total 3M Company shareholders' equity | |||||
| Ratio | ||||||
| | Debt to equity1 | |||||
| Adjusted | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Adjusted total debt2 | |||||
| | Adjusted total equity3 | |||||
| Ratio | ||||||
| | Adjusted debt to equity4 | |||||
2017 Calculations
1 Debt to equity = Total debt ÷ Total 3M Company shareholders' equity
= ÷ =
2 Adjusted total debt. See Details »
3 Adjusted total equity. See Details »
4 Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Adjusted debt-to-equity ratio | A solvency ratio calculated as adjusted total debt divided by adjusted total equity. | 3M Co.'s adjusted debt-to-equity ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Adjusted Debt to Capital
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Reported | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Total debt | |||||
| | Total capital | |||||
| Ratio | ||||||
| | Debt to capital1 | |||||
| Adjusted | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Adjusted total debt2 | |||||
| | Adjusted total capital3 | |||||
| Ratio | ||||||
| | Adjusted debt to capital4 | |||||
2017 Calculations
1 Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Adjusted total debt. See Details »
3 Adjusted total capital. See Details »
4 Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Adjusted debt-to-capital ratio | A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. | 3M Co.'s adjusted debt-to-capital ratio deteriorated from 2015 to 2016 and from 2016 to 2017. |
Adjusted Financial Leverage
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Reported | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Total assets | |||||
| | Total 3M Company shareholders' equity | |||||
| Ratio | ||||||
| | Financial leverage1 | |||||
| Adjusted | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Adjusted total assets2 | |||||
| | Adjusted total equity3 | |||||
| Ratio | ||||||
| | Adjusted financial leverage4 | |||||
2017 Calculations
1 Financial leverage = Total assets ÷ Total 3M Company shareholders' equity
= ÷ =
2 Adjusted total assets. See Details »
3 Adjusted total equity. See Details »
4 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Adjusted financial leverage | A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income. |
3M Co.'s adjusted financial leverage increased from 2015 to 2016 and from 2016 to 2017. |
Adjusted Net Profit Margin
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Reported | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Net income attributable to 3M | |||||
| | Net sales | |||||
| Ratio | ||||||
| | Net profit margin1 | % | % | % | % | % |
| Adjusted | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Adjusted comprehensive income including noncontrolling interest2 | |||||
| | Adjusted net sales3 | |||||
| Ratio | ||||||
| | Adjusted net profit margin4 | % | % | % | % | % |
2017 Calculations
1 Net profit margin = 100 × Net income attributable to 3M ÷ Net sales
= 100 × ÷ = %
2 Adjusted comprehensive income including noncontrolling interest. See Details »
3 Adjusted net sales. See Details »
4 Adjusted net profit margin = 100 × Adjusted comprehensive income including noncontrolling interest ÷ Adjusted net sales
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Adjusted net profit margin | An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. | 3M Co.'s adjusted net profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Adjusted Return on Equity (ROE)
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Reported | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Net income attributable to 3M | |||||
| | Total 3M Company shareholders' equity | |||||
| Ratio | ||||||
| | ROE1 | % | % | % | % | % |
| Adjusted | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Adjusted comprehensive income including noncontrolling interest2 | |||||
| | Adjusted total equity3 | |||||
| Ratio | ||||||
| | Adjusted ROE4 | % | % | % | % | % |
2017 Calculations
1 ROE = 100 × Net income attributable to 3M ÷ Total 3M Company shareholders' equity
= 100 × ÷ = %
2 Adjusted comprehensive income including noncontrolling interest. See Details »
3 Adjusted total equity. See Details »
4 Adjusted ROE = 100 × Adjusted comprehensive income including noncontrolling interest ÷ Adjusted total equity
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Adjusted ROE | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. | 3M Co.'s adjusted ROE improved from 2015 to 2016 and from 2016 to 2017. |
Adjusted Return on Assets (ROA)
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Reported | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Net income attributable to 3M | |||||
| | Total assets | |||||
| Ratio | ||||||
| | ROA1 | % | % | % | % | % |
| Adjusted | ||||||
| Selected Financial Data (USD $ in millions) | ||||||
| | Adjusted comprehensive income including noncontrolling interest2 | |||||
| | Adjusted total assets3 | |||||
| Ratio | ||||||
| | Adjusted ROA4 | % | % | % | % | % |
2017 Calculations
1 ROA = 100 × Net income attributable to 3M ÷ Total assets
= 100 × ÷ = %
2 Adjusted comprehensive income including noncontrolling interest. See Details »
3 Adjusted total assets. See Details »
4 Adjusted ROA = 100 × Adjusted comprehensive income including noncontrolling interest ÷ Adjusted total assets
= 100 × ÷ = %
| Ratio | Description | The company |
|---|---|---|
| Adjusted ROA | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. | 3M Co.'s adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
