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3M Co (NYSE:MMM) Asset Turnover

: 0.17 (As of Mar. 2023)
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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. 3M Co's Revenue for the three months ended in Mar. 2023 was $8,031 Mil. 3M Co's Total Assets for the quarter that ended in Mar. 2023 was $46,671 Mil. Therefore, 3M Co's Asset Turnover for the quarter that ended in Mar. 2023 was 0.17.

Asset Turnover is linked to ROE % through Du Pont Formula. 3M Co's annualized ROE % for the quarter that ended in Mar. 2023 was 26.01%. It is also linked to ROA % through Du Pont Formula. 3M Co's annualized ROA % for the quarter that ended in Mar. 2023 was 8.37%.


3M Co Asset Turnover Historical Data

The historical data trend for 3M Co's Asset Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

3M Co Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Asset Turnover
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.88 0.79 0.70 0.75 0.73

3M Co Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Asset Turnover Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.19 0.19 0.19 0.17 0.17

Competitive Comparison

For the Conglomerates subindustry, 3M Co's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

3M Co Asset Turnover Distribution

For the Conglomerates industry and Industrials sector, 3M Co's Asset Turnover distribution charts can be found below:

* The bar in red indicates where 3M Co's Asset Turnover falls in comparison to its industry or sector. The grey bar indicates the Asset Turnover's extreme value range as defined by GuruFocus.



3M Co Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

3M Co's Asset Turnover for the fiscal year that ended in Dec. 2022 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2022 )/( (Total Assets (A: Dec. 2021 )+Total Assets (A: Dec. 2022 ))/ count )
=34229/( (47072+46455)/ 2 )
=34229/46763.5
=0.73

3M Co's Asset Turnover for the quarter that ended in Mar. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Mar. 2023 )/( (Total Assets (Q: Dec. 2022 )+Total Assets (Q: Mar. 2023 ))/ count )
=8031/( (46455+46886)/ 2 )
=8031/46670.5
=0.17

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


3M Co  (NYSE:MMM) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

3M Co's annulized ROE % for the quarter that ended in Mar. 2023 is

ROE %**(Q: Mar. 2023 )
=Net Income/Total Stockholders Equity
=3904/15010
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(3904 / 32124)*(32124 / 46670.5)*(46670.5/ 15010)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.15 %*0.6883*3.1093
=ROA %*Equity Multiplier
=8.37 %*3.1093
=26.01 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

3M Co's annulized ROA % for the quarter that ended in Mar. 2023 is

ROA %(Q: Mar. 2023 )
=Net Income/Total Assets
=3904/46670.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(3904 / 32124)*(32124 / 46670.5)
=Net Margin %*Asset Turnover
=12.15 %*0.6883
=8.37 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


3M Co Asset Turnover Related Terms

Thank you for viewing the detailed overview of 3M Co's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


3M Co (NYSE:MMM) Business Description

3M Co logo
Address
3M Center, St. Paul, MN, USA, 55144
3M is a multinational conglomerate that has operated since 1902, when it was known as Minnesota Mining and Manufacturing. The company is well known for its research and development laboratory and it leverages its science and technology across multiple product categories. As of 2020, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. Nearly 50% of the company's revenue comes from outside the Americas, with the safety and industrial segment constituting a plurality of net sales. Many of the company's 60,000-plus products touch and concern a variety of consumers and end markets.
Executives
Suzan Kereere director 255 FISERV DRIVE, BROOKFIELD WI 53045
Kevin H Rhodes officer: EVP & Chief Legal Officer 3M COMPANY, 3M CENTER, BLDG 220-09-E-02, ST. PAUL MN 55144-1000
Peter D Gibbons officer: Group President 2401 UTAH AVENUE SOUTH, SUITE 800, SEATTLE WA 98134
Chavez Rodriguez Beatriz Karina officer: Senior Vice President 3M COMPANY, 3M CENTER BLDG 220-09-E-02, ST. PAUL MN 55144-1000
Mark W. Murphy officer: Executive Vice President ONE ST. JUDE MEDICAL DRIVE, ST. PAUL MN 55117
Zoe L Dickson officer: Executive Vice President 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
James R Fitterling director 2211 H.H. DOW WAY, MIDLAND MI 48674
Jeffrey R Lavers officer: Executive Vice President 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Veena M Lakkundi officer: Senior Vice President 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Monish D Patolawala officer: Senior VP and CFO 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Vinita Lee Piper other: IVM001 712 WILCREST, SUITE 3020, HOUSTON TX 77042
Pamela Craig director C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601
Ty R Silberhorn officer: Senior Vice President 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Theresa E Reinseth officer: Vice President/CAO 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Denise R Rutherford officer: Senior Vice President 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000

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