3M Company (MMM)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 6.88 | 7.55 | 7.59 | 6.84 | 6.71 | |
| DSO | days | 53.05 | 48.33 | 48.11 | 53.36 | 54.42 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.88
= 53.05
Based on the data provided, 3M Co.'s days of sales outstanding (DSO) has exhibited fluctuations over the past five years. The DSO for 2023 was 53.05 days, showing an increase from the previous year. This indicates that on average, it takes 3M Co. approximately 53 days to collect its accounts receivable.
Compared to 2022, the DSO increased by approximately 4.72 days, suggesting a potential deterioration in the company's accounts receivable collection efficiency. However, when looking at the trend over the last five years, the DSO has shown some variability but has generally remained within a relatively narrow range.
It would be important to further investigate the reasons behind the recent increase in DSO to determine if there are any underlying issues affecting the company's accounts receivable management. Overall, monitoring the DSO trend can provide valuable insights into 3M Co.'s liquidity and working capital management practices.
Peer comparison
Dec 31, 2023