Question: Disaggregating Return on Assets over Multiple Periods Following are selected financial statement data from 3M Company for 2015 through 2018. $ millions Total Assets

Disaggregating Return on Assets over Multiple Periods Following are selected financial statement data from 3M Company for 2015 through 2018. $ millions Total Assets Net Income Sales 2015 2016 $35,185 35,209 $5,035 $33,301 5,260 33,120 2017 2018 40,646 5,064 34,823 39,055 5,578 36,042 a. What was 3M Company's return on assets (ROA) for 2016, 2017, and 2018? Round answers to one decimal place (ex: 0.2345 = 23.5%). 2016 2017 % 2018 b. Determine profit margin (PM) for each of the three years 2016-2018. Round answers to one decimal place (ex: 0.2345 = 23.5%). 2016 2017 2018 % % % c. Determine asset turnover (AT) for each of the three years 2016-2018. Round answers to two decimal places. 2016 2017 2018 d. What factor is mainly responsible for the change in 3M's ROA from 2016 to 2017? Is it profit margin or asset turnover or both? e. What factor is mainly responsible for the change in 3M's ROA from 2017 to 2018? Is it profit margin or asset turnover or both?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Pendray Systems Corporation began operations on January 1, 20Y5 as an online retailer of computer software and hardware. The following financial statement data were taken from Pendray's records at...

please solve Smithson, Inc decided to implement the activity-based costing approach and was quite successful in its use. However, the controller is wondering if instead of only two activity cost...

Kilmer Company has demand for its only product that exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the...

P1-51. Disaggregating Return on Assets over Multiple Periods Following are selected financial statement data from 3M Company for 2012 through 2015. $ millions Total Assets Net Income Sales 2012.....

Disaggregating Return on Assets over Multiple Periods Following are selected financial statement data from 3M Company for 2012 through 2015. $ millions Total Assets Net Income Sales 2012 . . . . . ....

Disaggregating Return on Assets over Multiple Periods Following are selected financial statement data from 3M Company for 2015 through 2018. a. What was 3M Company's return on assets (ROA) for 2016,...

Please do part C. Disaggregating Return on Assets over Multiple Periods Following are selected financial statement data from 3M Company for 2015 through 2018. a. What was 3M Company's return on...

Following are selected financial statement data from 3M Company for 2015 through 2018. $ millions Total Assets Net Income Sales 2015 $33,212 $4,938 $31,182 2016 33,235 5,159 31,012 2017 38,367 4,966...

Following are selected financial statement data from 3M Company for 2009 through 2012. Required a. Compute 3M Company's return on assets for 2010 through 2012. Disaggregate 3M's ROA into the profit...

Pl-53. Disaggregating Return on Assets over Multiple Periods 3M COMPANY Following are selected financial statement data from 3M Company for 2015 through 2018. $millions 2015 ... ........... . .. ....

a b c d e f Comparing Ratios for Luxury and Budget Retailers Following are selected financial statement data from Capri Holdings (a retailer that owns upscale brands Michael Kors, Jimmy Choo, and...

Consider the Classic Furniture product mix problem (Problem 4-28). For each of the following situations, what would be the impact on the production plan and profit? If it is possible to compute the...

12. The angle of prism is 6 and refractive index for green light is 1.5. If a green ray passes from it the deviation will be (1) 30 (2) 15 (3) 9 (4) 3

Hydro controls manufacturers industrial valves and fittings used in a variety on the water applications in oil change and gas expiration has resulted in greater demand for the businesses products...

The accompanying data for the S&P 500 provides open, high, low, and close values for the S&P index over a period of time. Complete parts a through c below. Click the icon to view the S&P Index. a....

Ms. Ria has the following loans running in her name: a) Personal loan of $8,500, current balance outstanding on the loan is $8,100, total tenure of 48 months, paying an equated monthly installment of...

c) Martha is the accountant of a trading business. during the past years she produced interim accounts for the six months ended30 November 2018 . prepare a report using appropriate accounting ratios,...

A moving coil instrument gives a full-scale deflection of 30mA when the potential difference of 60 mV is applied. To measure 500V,on the same scale ________________ resistance to be added in series...

Based on Walmart's cash flow statement, a). deciding which statements below is useful doing pro forma financial analysis? b). How to create a Pro Forma financial analysis on Cash Flow Statements...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

Moving image is an exciting area of presentation. Describe how this is being used in communication fashion collection. LO.1

The press are important contributors to the industry. Explain the different reporting formats a journalist may write for and what the role may involve. LO.1

Your work covers three main areas of fashion management: event planning, marketing and show production. Can you tell us a little bit about each and what is your favourite area of work. LO.1