3M Company (MMM)
Total 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 |
| Total assets | US$ in thousands | 39,868,000 | 50,580,000 | 46,455,000 | 47,072,000 | 47,344,000 |
| Total asset turnover | 0.62 | 0.49 | 0.74 | 0.75 | 0.68 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $24,575,000K ÷ $39,868,000K
= 0.62
3M Company's total asset turnover ratio has shown some fluctuations over the past five years. The ratio was at 0.68 in December 2020 and improved slightly to 0.75 in December 2021. However, in the following years, there was a slight decrease to 0.74 in December 2022, a more significant drop to 0.49 in December 2023, and a subsequent recovery to 0.62 in December 2024.
A total asset turnover ratio below 1 indicates that 3M Company is generating less in sales relative to its total assets. The decreasing trend in the ratio from 2021 to 2023 might suggest that the company's efficiency in generating sales from its assets was declining. However, the improvement in 2024 shows a partial recovery in utilizing assets to generate revenue.
Further analysis would be required to understand the factors influencing these fluctuations in the total asset turnover ratio, including changes in sales volume, asset management strategies, and operational efficiency.
Peer comparison
Dec 31, 2024