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


See also:

3M Company Net Fixed Asset Turnover (Quarterly Data)