3M Company (MMM)
Fixed asset turnover
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 32,681,000 | 32,747,000 | 33,054,000 | 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 | 32,136,000 | 31,970,000 | 32,131,000 | 32,350,000 |
Property, plant and equipment | US$ in thousands | 9,159,000 | 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 | 9,333,000 | 8,891,000 | 8,998,000 | 8,829,000 |
Fixed asset turnover | 3.57 | 3.64 | 3.59 | 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 | 3.44 | 3.60 | 3.57 | 3.66 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $32,681,000K ÷ $9,159,000K
= 3.57
The fixed asset turnover of 3M Co. has been relatively stable over the past year, ranging from 3.57 to 3.78. This indicates that the company generates approximately $3.57 to $3.78 in revenue for every dollar invested in fixed assets. A higher fixed asset turnover is generally favorable as it suggests that the company is efficiently utilizing its fixed assets to generate sales.
While the turnover ratio has fluctuated slightly, the overall trend appears to be consistent, with no significant deviations from the average. This indicates that 3M Co. has been effectively managing its fixed assets to drive revenue generation. It is important for the company to maintain or improve its fixed asset turnover ratio to ensure optimal efficiency in asset utilization and maximize profitability.
Peer comparison
Dec 31, 2023