3M Company (MMM)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	24,575,000	24,567,000	24,543,000	24,571,000	26,586,000	28,663,000	31,012,000	33,431,000	34,229,000	34,762,000	35,085,000	35,333,000	35,355,000	35,326,000	34,734,000	32,960,000	32,184,000	31,712,000	31,353,000	32,348,000
Property, plant and equipment	US$ in thousands	7,388,000	7,529,000	7,472,000	9,072,000	7,690,000	9,004,000	9,211,000	9,247,000	9,178,000	9,196,000	9,319,000	9,389,000	9,429,000	9,323,000	9,358,000	9,240,000	9,421,000	9,216,000	9,089,000	9,165,000
Fixed asset turnover		3.33	3.26	3.28	2.71	3.46	3.18	3.37	3.62	3.73	3.78	3.76	3.76	3.75	3.79	3.71	3.57	3.42	3.44	3.45	3.53

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $24,575,000K ÷ $7,388,000K
= 3.33

The fixed asset turnover ratio for 3M Company has fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio stood at 3.53 on March 31, 2020, and gradually decreased to a low of 2.71 on March 31, 2024, before increasing to 3.33 by December 31, 2024.

A fixed asset turnover ratio measures how efficiently a company generates revenue from its investment in fixed assets, such as property, plant, and equipment. A higher ratio indicates better utilization of fixed assets to generate sales.

The general trend for 3M Company's fixed asset turnover ratio has shown some volatility but has remained relatively stable over the period, reflecting the company's ability to generate sales from its fixed asset base. However, the notable dip in the ratio in 2024 may warrant further investigation into potential shifts in the company's asset management or operational efficiency.