Common-Size Balance Sheet: Assets
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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3M Co., common-size consolidated balance sheet: assets
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
- Liquidity and Current Assets
- Cash and cash equivalents as a percentage of total assets fluctuated over the period, starting at 8.04% in 2017, decreasing to a low of 5.27% in 2019, then rising significantly to approximately 9.7% by 2021. This pattern suggests a strategic increase in liquid assets towards the end of the period. Marketable securities, current, displayed a general decline from 2.83% in 2017 to 0.43% in 2021, indicating reduced reliance on or availability of these near-cash investments.
- Accounts receivable decreased steadily from 12.93% in 2017 to just below 10% by 2021, implying improvements in receivables management or shifts in sales terms. Inventories experienced variability, initially rising to nearly 12% in 2018, then declining to below 9% in 2020, and rising again to over 10.5% in 2021, which could reflect changes in production or inventory policy responsive to demand or supply conditions.
- Prepaid expenses showed a consistent decrease throughout the period, moving from 2.47% to 1.39%, indicating a reduction in prepayments relative to total assets. Other current asset categories, including derivative assets and other current assets, remained relatively small portions of total assets with minor fluctuations but no clear trend.
- The overall proportion of current assets as a percentage of total assets declined markedly from 37.58% in 2017 to 29.04% in 2019, before partially recovering to around 32.7% by 2021. This suggests a shift in asset composition towards noncurrent assets in the mid-period followed by a moderate rebalancing towards liquidity or short-term investments.
- Long-Term Assets
- Property, plant, and equipment (PP&E) as a share of total assets showed a downward trend from 23.34% in 2017 to around 20% in 2021, indicating either asset disposals, depreciation outpacing capital expenditure, or reclassification. Operating lease right-of-use assets appeared in 2019 at just under 2%, remaining steady, reflecting the adoption of lease accounting standards impacting asset recognition.
- Goodwill remained a substantial proportion, fluctuating around 28%-30%, suggesting consistent levels of intangible value from acquisitions or business combinations. Intangible assets net increased markedly in 2019 to 14.28% from below 8% in previous years, then declined to around 11.2% by 2021, possibly reflecting new acquisitions or adjustments in amortization policies.
- Other intangible and deferred tax-related assets showed minor fluctuations. Prepaid pension and post-retirement assets increased notably from below 1% in early years to 2% by 2021, possibly due to changes in actuarial assumptions or funding status.
- Other noncurrent assets gradually increased from 3.67% to over 5.5%, indicating growing importance or recognition of these asset categories over time. Held-to-maturity securities appeared only in 2019 at 1.05%, then disappeared, suggesting temporary investments or reclassifications.
- Noncurrent assets overall increased in proportion from approximately 62.4% in 2017 to nearly 71% by 2019, then decreased slightly to about 67% by 2021, indicating a strategic asset allocation shift with a peak in long-term holdings during 2019.
- Asset Composition and Strategic Insights
- The total asset base percentages sum consistently to 100% across the years, validating the proportionality of all components. The movements in liquidity positions, alongside variations in PP&E and intangible asset shares, suggest active management of asset structure in response to operational needs or strategic initiatives.
- Decreases in current asset proportions coupled with increases in noncurrent assets in the middle of the period point to potential investments or capital projects undertaken, with a partial shift back towards liquidity or short-term assets in more recent years.
- The adoption of new lease accounting standards is evident from the introduction of operating lease right-of-use assets, introducing a new component to the asset structure starting in 2019.
- Overall, the data reflects a dynamic asset management strategy, balancing liquidity, operational assets, and intangible investments over time to align with the evolving business environment and financial reporting requirements.