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.