Sunday, January 25, 2015

Return on Assets Analysis of 3M Company (MMM)

When making an analysis of an industrial conglomerate such as 3M Company  (NYSE: MMM  ) , many investors settle on comparing segmental operating margins. However, a deeper analysis would also involve looking at segmental return on assets, or ROA -- defined here as segmental income divided by assets. This is a useful measure that helps investors to understand how the company makes best use of its assets and where it should invest for growth. Let's see how this applies to 3M.


READ THE FULL EQUITY RESEARCH ARTICLE LINKED