3M Company (MMM)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 24,575,000 | 24,610,000 | 34,229,000 | 35,355,000 | 32,184,000 |
| Property, plant and equipment | US$ in thousands | 7,388,000 | 7,690,000 | 9,178,000 | 9,429,000 | 9,421,000 |
| Fixed asset turnover | 3.33 | 3.20 | 3.73 | 3.75 | 3.42 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $24,575,000K ÷ $7,388,000K
= 3.33
The fixed asset turnover ratio for 3M Company experienced fluctuations over the five-year period from December 31, 2020, to December 31, 2024. Starting at 3.42 in 2020, the ratio increased to 3.75 in 2021 before dipping slightly to 3.73 in 2022. In 2023, the fixed asset turnover decreased further to 3.20, marking a notable decline. However, the ratio recovered in 2024, reaching 3.33.
Overall, the trend indicates that 3M Company efficiently utilized its fixed assets to generate revenue during these years, with the ratio generally staying above 3. This suggests that the company effectively managed and deployed its fixed assets to generate sales, although some fluctuations occurred, potentially due to changes in production levels, capital investments, or operational efficiency. Further analysis of the company's operational strategies and capital expenditure decisions could provide insights into the reasons behind the fluctuations in the fixed asset turnover ratio.
Peer comparison
Dec 31, 2024