Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
3M Co., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The analysis of the financial ratios over the specified periods reveals several significant patterns and trends relevant to the company's asset management and equity utilization.
- Net Fixed Asset Turnover
-
This ratio exhibits a generally stable performance over the observed dates, starting at 3.64 and showing modest fluctuations in each quarter. Despite minor dips, the ratio maintains a range near 3.6 to 3.8, with a notable peak around late 2021. This stability suggests consistent efficiency in generating sales from net fixed assets across the periods.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
-
When operating leases and right-of-use assets are included, the turnover ratio starts at the same level as the standard net fixed asset turnover but shows a downward adjustment starting in early 2019. The lowest values occur around mid-2020 before a gradual recovery, yet the figures remain below the traditional net fixed asset turnover across all periods. This indicates the impact of accounting for leases on asset base inflation and a relatively lower turnover when lease assets are considered.
- Total Asset Turnover
-
This ratio begins near 0.84 and peaks close to 0.9 by the end of 2018 before experiencing a steady decline through 2020, reaching a floor around 0.68. It then shows a slight recovery towards 0.77 by mid-2022, though it falls back slightly near the end of the period. The trend highlights a reduction in the firm's ability to generate sales from its total assets during the initial stages of the timeline, followed by modest improvements.
- Equity Turnover
-
Equity turnover displays a downward trajectory overall, moving from around 2.94 to a lower range near 2.4-2.5 in 2021 and 2022. There is a visible drop starting after mid-2019, with occasional minor recoveries that do not fully restore earlier levels. This trend implies decreasing efficiency in utilizing shareholders' equity to generate revenues over the observed intervals.
In summary, the net fixed asset turnover remains relatively stable, suggesting solid management of fixed assets, while adjustments for operating leases reduce this ratio's magnitude. Total asset turnover shows a declining trend with some recovery, reflecting challenges in asset utilization. Equity turnover declines steadily, indicating weakening revenue generation relative to the equity base over time. These insights highlight areas of asset utilization efficiency and capital management that warrant continued observation.
Net Fixed Asset Turnover
3M Co., net fixed asset turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||
| Property, plant and equipment, net | |||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Net fixed asset turnover
= (Net salesQ3 2022
+ Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
-
Net sales demonstrate variability over the analyzed periods, with a general pattern of fluctuations rather than a consistent growth or decline trend. Starting from approximately 8,278 million US dollars in March 2018, sales experienced moderate increases and decreases through subsequent quarters.
Notably, after peaking near 8,951 million US dollars in the March 2021 quarter, net sales showed a slight decline towards the end of the series, settling around 8,619 million US dollars in September 2022. The period around mid-2020 reflects a dip in sales, coinciding with external market disruptions, before recovering in the following quarters.
- Property, Plant and Equipment, Net
-
The net value of property, plant, and equipment remained relatively stable with slight appreciation across the periods. From 8,864 million US dollars in March 2018, the figure rose gradually to reach a peak near 9,429 million US dollars in June 2021.
Thereafter, it experienced minor fluctuations but stayed within a narrow range, ending at approximately 9,196 million US dollars in September 2022. This pattern suggests ongoing investments and asset maintenance activities, with no significant impairment or divestiture events affecting the asset base materially.
- Net Fixed Asset Turnover Ratio
-
The net fixed asset turnover ratio indicates the efficiency with which the company utilizes its fixed assets to generate sales. The ratio started around 3.64 in March 2018, reaching a higher plateau near 3.8 in late 2018 and early 2019.
A decline followed towards late 2019 and through 2020, dipping below 3.5, reflecting a relative decrease in asset utilization efficiency during this period. However, from 2021 onwards, there was a gradual recovery in this ratio, climbing back to approximately 3.78 by September 2022.
This recovery suggests improvements in operational efficiency and possibly better alignment of asset base with sales activity following the earlier dip.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
3M Co., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||
| Property, plant and equipment, net | |||||||||||||||||||||||||
| Operating lease right of use assets | |||||||||||||||||||||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | |||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ3 2022
+ Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the observed quarters. Net sales exhibit a general fluctuation with periods of both growth and decline. Starting around 8,278 million US dollars, sales show some volatility, notably dropping in mid-2020 but recovering thereafter to peak values near 8,951 million US dollars in mid-2021 before slightly declining again.
The value of property, plant, and equipment, including operating lease right-of-use assets, generally increases over time. Beginning at approximately 8,864 million US dollars, this asset base grows steadily, reaching a high point around 10,287 million US dollars in late 2021, with a slight reduction toward the end of the dataset.
The net fixed asset turnover ratio, which measures the efficiency of fixed asset utilization to generate revenue, trends downward from 3.80 in mid-2018 to a low near 3.13 by the end of 2020. Following this trough, the ratio improves modestly, stabilizing around 3.45–3.48 in the latter quarters, suggesting a recovery in asset efficiency.
- Net Sales
- Demonstrate variability influenced by external and possibly seasonal factors, with a significant decrease in the second quarter of 2020 followed by a rebound and moderate fluctuations thereafter.
- Property, Plant and Equipment, Net
- Show a consistent upward trend, indicating ongoing investment or capital expenditures. The asset base grows substantially from the initial to the final periods, implying expansion or asset renewal efforts.
- Net Fixed Asset Turnover
- Declines initially, indicating a decrease in efficiency in asset utilization relative to sales, potentially due to asset additions outpacing revenue growth. Later periods show improvement, suggesting better alignment between asset use and sales generation.
Overall, the data suggest a phase of asset growth accompanied by some challenges in maintaining sales efficiency, particularly around 2020, followed by a gradual recovery in operational performance as reflected by turnover ratios. The rebound in sales and improvement in turnover ratios in recent quarters point to positive adjustments in managing asset utilization and revenue generation.
Total Asset Turnover
3M Co., total asset turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Total asset turnover
= (Net salesQ3 2022
+ Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales exhibited fluctuations over the analyzed periods, starting at 8,278 million US dollars in March 2018 and showing some moderate variability through 2019. A notable decline occurred in the middle of 2020, reaching a low of 7,176 million US dollars in June 2020, likely reflecting external disruptions impacting revenue. Subsequently, net sales recovered steadily, peaking at 8,951 million US dollars in March 2021 before experiencing a gradual decrease through 2022, ending at 8,619 million US dollars in September 2022.
- Total Assets Trend
- Total assets began at 38,575 million US dollars in March 2018, showing a slight decline before rising sharply to a peak of 47,344 million US dollars in December 2020. Following this peak, total assets showed a decreasing trend through 2022, finishing at 46,176 million US dollars in the latest period. This pattern suggests significant asset accumulation up to the end of 2020, followed by a moderation or downsizing phase.
- Total Asset Turnover Ratio Trend
- The total asset turnover ratio, which measures efficiency in using assets to generate sales, started at 0.84 in March 2018 and exhibited a declining trend through December 2019, reaching as low as 0.68 in December 2020. After this low point, there was a gradual improvement in asset turnover through 2021 and into 2022, moving back up to approximately 0.75. This indicates an initial reduction in asset utilization efficiency followed by a recovery period.
- Overall Insights
- The data indicates that the company experienced pressure on net sales during mid-2020, possibly due to external market conditions, while total assets expanded significantly until the end of 2020. However, the efficiency of asset utilization declined during this time, as reflected in the lower asset turnover ratios. The subsequent periods show a recovery in both sales and turnover efficiency, although net sales have slightly decreased toward the latter part of 2022. The reduction in total assets after the 2020 peak could reflect strategic asset management adjustments following the expansion period.
Equity Turnover
3M Co., equity turnover calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||
| Total 3M Company shareholders’ equity | |||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||
| Boeing Co. | |||||||||||||||||||||||||
| Caterpillar Inc. | |||||||||||||||||||||||||
| Eaton Corp. plc | |||||||||||||||||||||||||
| GE Aerospace | |||||||||||||||||||||||||
| Honeywell International Inc. | |||||||||||||||||||||||||
| Lockheed Martin Corp. | |||||||||||||||||||||||||
| RTX Corp. | |||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q3 2022 Calculation
Equity turnover
= (Net salesQ3 2022
+ Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021)
÷ Total 3M Company shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the observed quarterly periods.
- Net Sales
- Net sales show slight fluctuations throughout the timeline, with an overall range roughly between 7,100 and 8,900 million USD. Initially, sales exhibit a slight decline during 2018 and early 2019, moving from above 8,200 million USD down to a low around 7,800 million USD. The period from early 2020 shows a temporary dip to approximately 7,176 million USD in the second quarter, possibly impacted by external market conditions. However, sales recovered thereafter, peaking near 8,950 million USD by the middle of 2021 before gradually tapering off to about 8,600 million USD by late 2022. This pattern suggests some resilience in sales with periodic volatility.
- Total Shareholders’ Equity
- Shareholders’ equity demonstrates a generally positive trajectory over the period. Starting around 10,900 million USD in early 2018, equity experienced a slight dip across 2018 but then consistently rose from 2019 onward. Notably, equity crossed the 14,000 million USD mark by late 2021, peaking at approximately 15,000 million USD in the first half of 2022 before exhibiting a minor decline toward the end of the data range. This incremental growth in equity implies an accumulation of retained earnings or other increases in net assets.
- Equity Turnover Ratio
- The equity turnover ratio portrays a declining trend throughout the observed quarters. Initially near 3.0 and peaking slightly above 3.3 in late 2018 and early 2019, the ratio then diminished steadily to around 2.4 by late 2021. It maintains a moderate range between 2.35 and 2.55 in 2022. The declining equity turnover suggests that net sales generated per unit of shareholders' equity have decreased, which may indicate reduced efficiency or slower asset utilization relative to the size of equity.
In summary, net sales exhibit moderate volatility with resilience after a mid-term dip, shareholders’ equity steadily increases over the long term, and the equity turnover ratio shows a downward trend suggestive of diminishing efficiency in utilizing equity to generate sales.