3M Company (MMM)

Days of inventory on hand (DOH)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		3.83	3.63	3.51	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	4.15	4.21	3.92	3.69
DOH	days	95.26	100.56	103.99	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	88.05	86.69	93.19	98.85

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.83
= 95.26

To analyze 3M Co.'s days of inventory on hand (DOH) over the past 8 quarters, we observe a fluctuating trend. In Q4 2023, the DOH decreased to 95.26 days compared to the previous quarter's 100.56 days. This reduction suggests effective inventory management, potentially resulting in lower holding costs and improved cash flow.

Looking further back, Q2 and Q3 of 2023 saw a slight increase in DOH, indicating a buildup of inventory relative to sales. This trend continued from Q4 2022, where DOH peaked at 105.94 days. However, in Q1 2023, there was a slight improvement, bringing the DOH down to 101.83 days.

Comparing year-over-year, there has been a consistent effort to optimize inventory levels, with Q4 2023 showing the lowest DOH compared to the same period in 2022. It is evident that 3M Co. has made some adjustments in managing its inventory turnover rate, albeit with some fluctuations.

Overall, while there have been fluctuations in 3M Co.'s DOH over the past 8 quarters, the recent decrease in Q4 2023 suggests a potentially positive outcome in terms of inventory management efficiency. Continued monitoring of this ratio will be crucial to assess the ongoing effectiveness of 3M Co.'s inventory control measures.