3M Company (MMM)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		7.69	5.18	7.55	7.59	6.84
DSO	days	47.44	70.45	48.33	48.11	53.36

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.69
= 47.44

To analyze 3M Company's Days of Sales Outstanding (DSO) trend, we consider the following data points from the provided JSON:

1. As of December 31, 2020, the company had a DSO of 53.36 days.
2. By December 31, 2021, the DSO decreased to 48.11 days, indicating an improvement in collecting receivables.
3. As of December 31, 2022, the DSO remained relatively stable at 48.33 days, reflecting consistent efficiency in collecting sales revenues.
4. However, by December 31, 2023, there was a notable increase in DSO to 70.45 days, suggesting a potential delay in collecting receivables.
5. The most recent data point as of December 31, 2024, shows a significant improvement in DSO to 47.44 days, nearing the level observed in 2021, indicating a positive turnaround in the collection cycle efficiency.

Overall, the trend in the Days of Sales Outstanding for 3M Company demonstrates fluctuations over the years, with improvements in collection efficiency in some periods and temporary setbacks in others. It is essential for the company to monitor and manage its receivables effectively to maintain stable cash flows and healthy working capital levels.