3M Company (MMM)

Total 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
Total assets	US$ in thousands	50,580,000	49,621,000	48,880,000	46,886,000	46,455,000	46,176,000	45,634,000	45,855,000	47,072,000	48,278,000	48,307,000	47,180,000	47,344,000	45,390,000	45,079,000	46,212,000	44,659,000	42,550,000	38,969,000	39,140,000
Total asset turnover		0.65	0.66	0.68	0.71	0.74	0.75	0.77	0.77	0.75	0.73	0.72	0.70	0.68	0.70	0.70	0.70	0.72	0.75	0.82	0.83

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $32,681,000K ÷ $50,580,000K
= 0.65

The total asset turnover ratio for 3M Co. has shown a decreasing trend over the past eight quarters, declining from 0.77 in Q1 2022 to 0.65 in Q4 2023. This indicates that the company generated $0.65 in revenue for every $1 of total assets in Q4 2023, compared to $0.77 in Q1 2022.

A decreasing total asset turnover ratio can suggest inefficiencies in asset utilization, as it implies that the company is generating less revenue from its assets. This could be due to various factors such as declining sales, excess assets, or poor asset management.

It is important for 3M Co. to closely monitor and address the factors contributing to the decreasing total asset turnover ratio to ensure optimal utilization of assets and improve overall operational efficiency.