.Long-term (Investment) Activity Analysis
Difficulty: Beginner
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Ratios (Summary)
3M Co., long-term (investment) activity ratios
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| | Net fixed asset turnover | |||||
| | Total asset turnover | |||||
| | Equity turnover |
Source: Based on data from 3M Co. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | 3M Co.'s net fixed asset turnover deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | 3M Co.'s total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders' equity. | 3M Co.'s equity turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
Net Fixed Asset Turnover
3M Co., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Net sales | |||||
| | Property, plant and equipment, net | |||||
| Ratio | ||||||
| | Net fixed asset turnover1 | |||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors | ||||||
| Danaher Corp. | ||||||
| General Electric Co. | ||||||
| Honeywell International Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| General Industrials | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | ||||||
Source: Based on data from 3M Co. Annual Reports
2017 Calculations
1 Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | 3M Co.'s net fixed asset turnover deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level. |
Total Asset Turnover
3M Co., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Net sales | |||||
| | Total assets | |||||
| Ratio | ||||||
| | Total asset turnover1 | |||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors | ||||||
| Danaher Corp. | ||||||
| General Electric Co. | ||||||
| Honeywell International Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| General Industrials | ||||||
| Total Asset Turnover, Industry | ||||||
| Industrials | ||||||
Source: Based on data from 3M Co. Annual Reports
2017 Calculations
1 Total asset turnover = Net sales ÷ Total assets
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | 3M Co.'s total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017. |
Equity Turnover
3M Co., equity turnover calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Net sales | |||||
| | Total 3M Company shareholders' equity | |||||
| Ratio | ||||||
| | Equity turnover1 | |||||
| Benchmarks | ||||||
| Equity Turnover, Competitors | ||||||
| Danaher Corp. | ||||||
| General Electric Co. | ||||||
| Honeywell International Inc. | ||||||
| Equity Turnover, Sector | ||||||
| General Industrials | ||||||
| Equity Turnover, Industry | ||||||
| Industrials | ||||||
Source: Based on data from 3M Co. Annual Reports
2017 Calculations
1 Equity turnover = Net sales ÷ Total 3M Company shareholders' equity
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders' equity. | 3M Co.'s equity turnover improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
