Stock Analysis on Net
Stock Analysis on Net

3M Co. (NYSE:MMM)

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

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

3M Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2022 46.70% = 14.24% × 3.28
Jun 30, 2022 30.20% = 9.09% × 3.32
Mar 31, 2022 37.48% = 12.20% × 3.07
Dec 31, 2021 39.35% = 12.58% × 3.13
Sep 30, 2021 41.29% = 12.37% × 3.34
Jun 30, 2021 41.18% = 12.32% × 3.34
Mar 31, 2021 41.54% = 12.12% × 3.43
Dec 31, 2020 41.84% = 11.37% × 3.68
Sep 30, 2020 41.78% = 10.94% × 3.82
Jun 30, 2020 47.29% = 11.39% × 4.15
Mar 31, 2020 48.99% = 10.76% × 4.55
Dec 31, 2019 45.41% = 10.23% × 4.44
Sep 30, 2019 46.23% = 11.63% × 3.98
Jun 30, 2019 48.68% = 12.59% × 3.86
Mar 31, 2019 58.11% = 14.40% × 4.03
Dec 31, 2018 54.60% = 14.65% × 3.73
Sep 30, 2018 44.15% = 12.14% × 3.64
Jun 30, 2018 42.56% = 11.99% × 3.55
Mar 31, 2018 37.69% = 10.72% × 3.51
Dec 31, 2017 42.01% = 12.79% × 3.29
Sep 30, 2017 — = — × 2.90
Jun 30, 2017 — = — × 2.93
Mar 31, 2017 — = — × 3.03

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).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2022 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

3M Co., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2022 46.70% = 18.91% × 0.75 × 3.28
Jun 30, 2022 30.20% = 11.83% × 0.77 × 3.32
Mar 31, 2022 37.48% = 15.84% × 0.77 × 3.07
Dec 31, 2021 39.35% = 16.75% × 0.75 × 3.13
Sep 30, 2021 41.29% = 16.90% × 0.73 × 3.34
Jun 30, 2021 41.18% = 17.13% × 0.72 × 3.34
Mar 31, 2021 41.54% = 17.34% × 0.70 × 3.43
Dec 31, 2020 41.84% = 16.73% × 0.68 × 3.68
Sep 30, 2020 41.78% = 15.65% × 0.70 × 3.82
Jun 30, 2020 47.29% = 16.37% × 0.70 × 4.15
Mar 31, 2020 48.99% = 15.37% × 0.70 × 4.55
Dec 31, 2019 45.41% = 14.22% × 0.72 × 4.44
Sep 30, 2019 46.23% = 15.48% × 0.75 × 3.98
Jun 30, 2019 48.68% = 15.27% × 0.82 × 3.86
Mar 31, 2019 58.11% = 17.43% × 0.83 × 4.03
Dec 31, 2018 54.60% = 16.33% × 0.90 × 3.73
Sep 30, 2018 44.15% = 13.79% × 0.88 × 3.64
Jun 30, 2018 42.56% = 13.44% × 0.89 × 3.55
Mar 31, 2018 37.69% = 12.83% × 0.84 × 3.51
Dec 31, 2017 42.01% = 15.35% × 0.83 × 3.29
Sep 30, 2017 — = — × — × 2.90
Jun 30, 2017 — = — × — × 2.93
Mar 31, 2017 — = — × — × 3.03

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).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2022 is the increase in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

3M Co., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2022 14.24% = 18.91% × 0.75
Jun 30, 2022 9.09% = 11.83% × 0.77
Mar 31, 2022 12.20% = 15.84% × 0.77
Dec 31, 2021 12.58% = 16.75% × 0.75
Sep 30, 2021 12.37% = 16.90% × 0.73
Jun 30, 2021 12.32% = 17.13% × 0.72
Mar 31, 2021 12.12% = 17.34% × 0.70
Dec 31, 2020 11.37% = 16.73% × 0.68
Sep 30, 2020 10.94% = 15.65% × 0.70
Jun 30, 2020 11.39% = 16.37% × 0.70
Mar 31, 2020 10.76% = 15.37% × 0.70
Dec 31, 2019 10.23% = 14.22% × 0.72
Sep 30, 2019 11.63% = 15.48% × 0.75
Jun 30, 2019 12.59% = 15.27% × 0.82
Mar 31, 2019 14.40% = 17.43% × 0.83
Dec 31, 2018 14.65% = 16.33% × 0.90
Sep 30, 2018 12.14% = 13.79% × 0.88
Jun 30, 2018 11.99% = 13.44% × 0.89
Mar 31, 2018 10.72% = 12.83% × 0.84
Dec 31, 2017 12.79% = 15.35% × 0.83
Sep 30, 2017 — = — × —
Jun 30, 2017 — = — × —
Mar 31, 2017 — = — × —

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).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2022 is the increase in profitability measured by net profit margin ratio.