3M Co. (MMM)

Profitability Analysis Quarterly Data

Difficulty: Beginner

Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).

Ratios (Summary)

3M Co., profitability ratios (quarterly data)

	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
Return on Sales
Gross profit margin	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%
Operating profit margin	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%
Net profit margin	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%
Return on Investment
Return on equity (ROE)	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%
Return on assets (ROA)	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%

Source: Based on data from 3M Co. Quarterly and Annual Reports

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	3M Co.'s gross profit margin deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	3M Co.'s operating profit margin deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	3M Co.'s net profit margin deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
ROE	A profitability ratio calculated as net income divided by shareholders' equity.	3M Co.'s ROE deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.
ROA	A profitability ratio calculated as net income divided by total assets.	3M Co.'s ROA deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Gross Profit Margin

3M Co., gross profit margin calculation (quarterly data)

	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
Selected Financial Data (USD $ in millions)
Gross profit
Net sales
Ratio
Gross profit margin¹	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%

Source: Based on data from 3M Co. Quarterly and Annual Reports

Q1 2018 Calculations

¹ Gross profit margin = 100 × (Gross profit_{Q1 2018} + Gross profit_{Q4 2017} + Gross profit_{Q3 2017} + Gross profit_{Q2 2017}) ÷ (Net sales_{Q1 2018} + Net sales_{Q4 2017} + Net sales_{Q3 2017} + Net sales_{Q2 2017})
= 100 × ( + + + ) ÷ ( + + + ) = %

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	3M Co.'s gross profit margin deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Operating Profit Margin

3M Co., operating profit margin calculation (quarterly data)

	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
Selected Financial Data (USD $ in millions)
Operating income
Net sales
Ratio
Operating profit margin¹	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%

Source: Based on data from 3M Co. Quarterly and Annual Reports

Q1 2018 Calculations

¹ Operating profit margin = 100 × (Operating income_{Q1 2018} + Operating income_{Q4 2017} + Operating income_{Q3 2017} + Operating income_{Q2 2017}) ÷ (Net sales_{Q1 2018} + Net sales_{Q4 2017} + Net sales_{Q3 2017} + Net sales_{Q2 2017})
= 100 × ( + + + ) ÷ ( + + + ) = %

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	3M Co.'s operating profit margin deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Net Profit Margin

3M Co., net profit margin calculation (quarterly data)

	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
Selected Financial Data (USD $ in millions)
Net income attributable to 3M
Net sales
Ratio
Net profit margin¹	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%

Source: Based on data from 3M Co. Quarterly and Annual Reports

Q1 2018 Calculations

¹ Net profit margin = 100 × (Net income attributable to 3M_{Q1 2018} + Net income attributable to 3M_{Q4 2017} + Net income attributable to 3M_{Q3 2017} + Net income attributable to 3M_{Q2 2017}) ÷ (Net sales_{Q1 2018} + Net sales_{Q4 2017} + Net sales_{Q3 2017} + Net sales_{Q2 2017})
= 100 × ( + + + ) ÷ ( + + + ) = %

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	3M Co.'s net profit margin deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Return on Equity (ROE)

3M Co., ROE calculation (quarterly data)

	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
Selected Financial Data (USD $ in millions)
Net income attributable to 3M
Total 3M Company shareholders' equity
Ratio
ROE¹	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%

Source: Based on data from 3M Co. Quarterly and Annual Reports

Q1 2018 Calculations

¹ ROE = 100 × (Net income attributable to 3M_{Q1 2018} + Net income attributable to 3M_{Q4 2017} + Net income attributable to 3M_{Q3 2017} + Net income attributable to 3M_{Q2 2017}) ÷ Total 3M Company shareholders' equity
= 100 × ( + + + ) ÷ = %

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders' equity.	3M Co.'s ROE deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Return on Assets (ROA)

3M Co., ROA calculation (quarterly data)

	Mar 31, 2018	Dec 31, 2017	Sep 30, 2017	Jun 30, 2017	Mar 31, 2017	Dec 31, 2016	Sep 30, 2016	Jun 30, 2016	Mar 31, 2016	Dec 31, 2015	Sep 30, 2015	Jun 30, 2015	Mar 31, 2015	Dec 31, 2014	Sep 30, 2014	Jun 30, 2014	Mar 31, 2014	Dec 31, 2013	Sep 30, 2013	Jun 30, 2013	Mar 31, 2013
Selected Financial Data (USD $ in millions)
Net income attributable to 3M
Total assets
Ratio
ROA¹	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%	%

Source: Based on data from 3M Co. Quarterly and Annual Reports

Q1 2018 Calculations

¹ ROA = 100 × (Net income attributable to 3M_{Q1 2018} + Net income attributable to 3M_{Q4 2017} + Net income attributable to 3M_{Q3 2017} + Net income attributable to 3M_{Q2 2017}) ÷ Total assets
= 100 × ( + + + ) ÷ = %

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	3M Co.'s ROA deteriorated from Q3 2017 to Q4 2017 and from Q4 2017 to Q1 2018.

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Discounted Cash Flow (DCF) Valuation
Analysis
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	All companies
Long-term Trends
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Analysis
Financial Reporting Quality