3M Company (MMM)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		3.91	3.80	3.58	3.77	3.92
DOH	days	93.43	96.08	101.95	96.81	93.18

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.91
= 93.43

The days of inventory on hand (DOH) for 3M Company has exhibited some fluctuations over the past five years. The DOH increased from 93.18 days as of December 31, 2020, to 96.81 days as of December 31, 2021, indicating a slightly longer period of time for the company to sell its inventory. Subsequently, there was a further rise to 101.95 days by December 31, 2022, reflecting a potential inefficiency in managing inventory levels.

However, there was a notable decrease in DOH to 96.08 days by December 31, 2023, suggesting a more efficient inventory management practice. This improvement was sustained as the DOH decreased again to 93.43 days by December 31, 2024, which could indicate better control over inventory levels or a more streamlined production process.

Overall, it is essential for 3M Company to carefully monitor its DOH to ensure optimal inventory turnover and avoid excessive holding costs or potential obsolescence. Efforts to maintain an appropriate balance between inventory levels and sales demand can enhance operational efficiency and financial performance over time.