3M Company (MMM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 32,681,000 | 34,229,000 | 35,355,000 | 32,184,000 | 32,136,000 |
| Property, plant and equipment | US$ in thousands | 9,159,000 | 9,178,000 | 9,429,000 | 9,421,000 | 9,333,000 |
| Fixed asset turnover | 3.57 | 3.73 | 3.75 | 3.42 | 3.44 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $32,681,000K ÷ $9,159,000K
= 3.57
3M Co.'s fixed asset turnover ratio has shown some fluctuations over the past five years. The ratio measures the company's efficiency in generating sales from its investment in fixed assets. In 2023, the fixed asset turnover ratio decreased to 3.57 from 3.73 in 2022, indicating a slight decrease in efficiency in utilizing its fixed assets to generate revenue.
However, it is worth noting that 3.57 is still higher than the ratios observed in 2020 and 2019, which were 3.42 and 3.44, respectively. This suggests that, despite the decline in 2023, the company has improved its efficiency in utilizing fixed assets compared to the previous years.
Overall, the trend in the fixed asset turnover ratio for 3M Co. shows fluctuations, but the company appears to be effectively using its fixed assets to generate sales, with some variations in efficiency from year to year.
Peer comparison
Dec 31, 2023