3M Company (MMM)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	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
Inventory turnover		3.91	3.59	3.59	3.01	4.02	3.29	3.34	3.58	3.58	3.45	3.45	3.61	3.77	3.73	3.70	3.82	3.92	4.15	3.94	4.02
DOH	days	93.43	101.69	101.73	121.39	90.81	111.09	109.17	101.83	101.95	105.94	105.83	101.11	96.81	97.74	98.54	95.60	93.18	87.91	92.61	90.89

December 31, 2024 calculation

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

3M Company's Days of Inventory on Hand (DOH) measures how many days it takes for the company to sell its average inventory. Looking at the historical trend, we observe fluctuations in DOH over the quarters.

- The average DOH for 3M over the period under review is approximately 100 days, indicating that the company holds around 3 months' worth of inventory on average.
- The data points to some fluctuations, with DOH ranging from a low of 87.91 days in September 2020 to a high of 121.39 days in March 2024.
- The increasing trend in DOH from around 90 days in the beginning of the period to over 120 days by March 2024 suggests a potential inventory management challenge.
- It is important for 3M to closely monitor and manage its inventory levels to avoid overstocking or understocking, as both scenarios can impact the company's profitability and operational efficiency.

Overall, the DOH trend indicates the need for 3M to continuously review and optimize its inventory management strategies to ensure efficient utilization of resources and maintain a healthy balance between inventory levels and demand fluctuations.