Compute Measures for DuPont Disaggregation Analysis
Use the information below for 2018 for 3M Company to answer the requirements
($ millions)
2018 2017
Sales
$32,765
Net income, consolidated
5,363
Net income attributable to 3M shareholders 5.349
Pretax interest expense
207
Assets
36,500 $37,987
Total equity
9,848 11,622
Equity attributable to 3M shareholders
9,796 11,563
a. Compute return on equity (ROE) from the perspective of a 3M shareholder.
Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute ROE.
Numerator
Denominator
ROE
%
b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage. (Perform these computations from a consolidated perspective).
Profit Margin (PM)
Note: 1. Select the appropriate numerator and denominator used to compute PM from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute PM.
Numerator
Denominator
PM
%
Asset turnover (AT)
Note: 1. Select the appropriate numerator and denominator used to compute AT from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute AT.
Numerator
Denominator
AT
Financial leverage (FL)
Note: 1. Select the appropriate numerator and denominator used to compute FL from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute FL.
Numerator
Denominator
FL
