Analysis of Geographic Areas
3M Co. operates in 3 regions: Americas; Asia Pacific; and Europe, Middle East and Africa.
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Debt
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Area Asset Turnover
3M Co., asset turnover by geographic area
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Americas | |||||
| Asia Pacific | |||||
| Europe, Middle East and Africa |
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).
- Americas
-
The asset turnover ratio for the Americas region exhibits moderate fluctuation over the five-year period. Beginning at 2.85 in 2017, the ratio increased slightly to 2.96 in 2018, followed by a decline to 2.75 in 2019. The ratio then rose again to 2.87 in 2020 and reached its peak value of 3.09 in 2021. Overall, the trend suggests a gradual improvement in asset utilization efficiency in the Americas, particularly noticeable in the last recorded year.
- Asia Pacific
-
The Asia Pacific region shows consistently higher asset turnover ratios compared to the other regions. The ratio starts at 5.87 in 2017 and increases to 6.31 in 2018. This is followed by a slight decline to 5.98 in 2019 and a further decrease to 5.76 in 2020. However, there is a significant rebound in 2021, with the ratio increasing markedly to 6.7, the highest value recorded over the period. Despite some variability, the overall trend for this region indicates strong asset turnover performance with notable recovery after a dip in 2020.
- Europe, Middle East and Africa
-
This region demonstrates more volatility and a generally declining trend in asset turnover ratios. The ratio increased slightly from 3.59 in 2017 to 3.8 in 2018 but then began to decrease steadily over the following years, reaching 3.42 in 2019 and falling further to 3.04 in 2020. A minor recovery to 3.36 occurred in 2021. Despite the partial rebound in the final year, the overall pattern reflects weakening asset efficiency in the Europe, Middle East, and Africa region over the observed period.
Area Asset Turnover: Americas
3M Co.; Americas; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2021 Calculation
Area asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
The financial data reveals several noteworthy trends over the five-year period.
- Net Sales
- Net sales exhibit a consistent upward trajectory, increasing from 15,405 million US dollars in 2017 to 18,097 million US dollars in 2021. This represents a cumulative growth of approximately 17.4%. The sales growth appears steady, with no significant declines, underscoring effective revenue generation in the Americas region.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment shows some fluctuation but remains relatively stable overall. Starting at 5,396 million US dollars in 2017, it decreased slightly to 5,363 million in 2018, then increased to 5,873 million in 2019. After a minor dip to 5,752 million in 2020, it rose again to 5,864 million in 2021. These changes suggest ongoing investments and asset management adjustments, but no major expansions or contractions in fixed assets.
- Area Asset Turnover
- The area asset turnover ratio, which measures sales generated per unit of property, plant, and equipment, varies over the period. It increased gradually from 2.85 in 2017 to 2.96 in 2018, declined to 2.75 in 2019, then improved to 2.87 in 2020, and further advanced to 3.09 in 2021. The upward movement in 2021 indicates enhanced efficiency in utilizing assets to generate sales, aligning with the observed growth in net sales.
Overall, the data indicates steady revenue growth supported by stable asset levels, with recent improvements in asset utilization efficiency. The combination of rising sales and enhanced asset turnover suggests an increasingly productive deployment of resources in the Americas segment over the observed timeframe.
Area Asset Turnover: Asia Pacific
3M Co.; Asia Pacific; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2021 Calculation
Area asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
- Net Sales
- The net sales in the Asia Pacific region displayed minor fluctuations over the observed period. Starting at 9,809 million US dollars in 2017, there was an increase to 10,254 million in 2018, followed by a slight decline to 9,796 million in 2019. Sales continued to decrease in 2020, reaching 9,569 million, the lowest in the timeframe. However, in 2021, net sales rose again, peaking at 10,600 million, the highest value recorded during the five years.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment remained relatively stable but showed a general downward trend. Beginning at 1,672 million US dollars in 2017, the figure decreased slightly to 1,624 million in 2018. It then experienced a small increase to 1,637 million in 2019 and continued to rise marginally to 1,662 million in 2020. Nevertheless, by 2021, the net value declined again to 1,582 million, indicating a net reduction over the entire period.
- Area Asset Turnover
- This efficiency ratio demonstrated variability with an overall positive trend. The ratio started at 5.87 in 2017, increased to 6.31 in 2018, and then declined to 5.98 in 2019. There was a further slight decrease in 2020 to 5.76, but a significant improvement was observed in 2021, reaching the highest value of 6.7. This suggests an improvement in asset utilization efficiency toward the end of the period.
- Summary
- Over the five years, net sales showed volatility but ended higher in 2021 than at the start of 2017, demonstrating growth after a dip. The net property, plant, and equipment assets slightly decreased overall, which could imply divestment or less capital expenditure in the region. The area asset turnover ratio, reflecting asset efficiency, improved markedly by the end of the period, indicating better use of assets to generate sales despite minor fluctuations along the way. Collectively, these trends suggest a focus on improving operational efficiency while managing fixed asset investments prudently.
Area Asset Turnover: Europe, Middle East and Africa
3M Co.; Europe, Middle East and Africa; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2021 Calculation
Area asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
- Net Sales
- Net sales in the Europe, Middle East, and Africa region displayed fluctuations over the observed period. Beginning at 6,456 million US dollars in 2017, net sales increased slightly in 2018 to 6,654 million. However, a decline occurred in 2019 and 2020, reducing net sales to 6,226 million and 6,109 million respectively. In 2021, net sales rebounded to 6,660 million, reaching the highest level in the timeframe under review.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment experienced moderate variability, with an overall upward trend. Starting at 1,798 million US dollars in 2017, a slight decrease to 1,751 million was noted in 2018. Subsequently, the asset base expanded to 1,823 million in 2019 and achieved a peak of 2,007 million in 2020. A slight decline to 1,983 million occurred in 2021, though the value remained elevated compared to earlier years.
- Area Asset Turnover
- Area asset turnover, reflecting the efficiency of asset utilization in generating sales, showed a downward trajectory over the five-year span. The ratio started at 3.59 in 2017, improved to 3.80 in 2018, but then declined progressively to 3.42 in 2019 and further to 3.04 in 2020. A modest recovery to 3.36 was observed in 2021, but the figure remained below the initial years.
- Overall Analysis
- Despite fluctuations in net sales, the region demonstrated resilience with a recovery in 2021 surpassing previous levels. Investment in property, plant, and equipment expanded steadily, indicating ongoing capital commitment. The decline in area asset turnover suggests a reduction in asset efficiency over the period, partially offset by the slight improvement in the final year. This pattern may reflect changes in operational dynamics, asset base expansion, or market conditions affecting revenue generation relative to assets employed.
Net sales
3M Co., net sales by geographic area
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Americas | |||||
| Asia Pacific | |||||
| Europe, Middle East and Africa | |||||
| Other Unallocated | |||||
| Worldwide |
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).
An analysis of the annual net sales by geographic region reveals distinct patterns and trends over the five-year period from 2017 to 2021.
- Americas
- Net sales in the Americas region consistently increased each year, beginning at $15,405 million in 2017 and reaching $18,097 million in 2021. This steady upward trend indicates robust growth, with a notable acceleration in the final year where sales grew by approximately 9.5% from the previous year.
- Asia Pacific
- Sales in the Asia Pacific region showed some fluctuation. After growing from $9,809 million in 2017 to $10,254 million in 2018, the region experienced declines in the subsequent years, dropping to $9,796 million in 2019 and further down to $9,569 million in 2020. However, a recovery occurred in 2021, with sales increasing to $10,600 million. Despite this recovery, the sales level in 2021 was only modestly above the 2017 figure, suggesting relatively stagnant performance over the period.
- Europe, Middle East and Africa (EMEA)
- Sales in the EMEA region exhibited a generally declining trend from 2017 to 2020, starting at $6,456 million in 2017 and decreasing to $6,109 million in 2020. In 2021, however, sales rebounded to $6,660 million, surpassing the 2017 figure. This pattern suggests a period of contraction followed by a notable recovery in the final year.
- Other Unallocated
- The Other Unallocated category consistently reported negative values, fluctuating between -$19 million and -$2 million. While this segment represents a small fraction of total sales, its negative values indicate adjustments, eliminations, or other accounting entries that reduce the overall reported net sales.
- Worldwide
- Worldwide net sales demonstrate overall growth from $31,657 million in 2017 to $35,355 million in 2021. The total sales peaked in 2018 at $32,765 million before slightly declining over the next two years and subsequently increasing significantly in 2021. The global sales trend aligns closely with the performance in the Americas region, which is the largest contributor to total sales.
In summary, the Americas region serves as the primary driver of net sales growth. The Asia Pacific and EMEA regions have experienced volatility and some declines but showed signs of recovery in 2021. The overall worldwide sales have increased over the period, reflecting the strength in the Americas and recovery in other regions.
Property, plant and equipment, net
3M Co., property, plant and equipment, net by geographic area
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Americas | |||||
| Asia Pacific | |||||
| Europe, Middle East and Africa | |||||
| Worldwide |
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).
- Americas
- The net property, plant, and equipment values in the Americas display a relatively stable trend over the five-year period. Beginning at $5,396 million in 2017, the amount slightly decreased to $5,363 million in 2018. This was followed by an increase to $5,873 million in 2019. The value then declined marginally to $5,752 million in 2020 before rising again to $5,864 million in 2021. Overall, the fluctuations were minor, and the net value remained close to the $5,800 million mark in the last two years.
- Asia Pacific
- The Asia Pacific region experienced a slight overall decline in the net property, plant, and equipment values across the reported years. Starting at $1,672 million in 2017, there was a downward trend with small year-to-year changes: $1,624 million in 2018, a minor increase to $1,637 million in 2019, followed by $1,662 million in 2020, before a further decrease to $1,582 million in 2021. The values fluctuated within a narrow range but ended lower than the initial 2017 figure, indicating a modest reduction in net assets in this geographic area.
- Europe, Middle East and Africa
- This region showed a positive growth trend over the five years in question. The net property, plant, and equipment amount started at $1,798 million in 2017 and saw slight decreases and increases, moving to $1,751 million in 2018 and then rising to $1,823 million in 2019. Notably, 2020 marked a significant increase to $2,007 million, with a slight decrease to $1,983 million in 2021. The overall pattern reflects a strong growth phase primarily driven by the increase in 2020, followed by a minor tapering off the next year.
- Worldwide
- Aggregated net property, plant, and equipment values globally showed a consistent upward trajectory over the period. Starting at $8,866 million in 2017, the figure decreased slightly to $8,738 million in 2018. Subsequently, there was a steady increase to $9,333 million in 2019 and $9,421 million in 2020, with a marginal rise to $9,429 million in 2021. The data indicates an overall growth in worldwide net assets, primarily supported by growth in the Europe, Middle East, and Africa region, while the Americas remained relatively stable and Asia Pacific showed a slight decline.