3M Company (MMM)

Days of sales outstanding (DSO)

		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
Receivables turnover		7.69	6.96	6.87	5.17	5.60	5.91	6.27	7.21	7.55	7.36	7.14	7.34	7.59	7.19	6.96	6.84	6.84	6.86	7.03	6.71
DSO	days	47.44	52.42	53.17	70.56	65.21	61.79	58.22	50.64	48.33	49.58	51.12	49.74	48.11	50.79	52.45	53.34	53.36	53.21	51.91	54.40

December 31, 2024 calculation

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

Days of sales outstanding (DSO) is a key metric that indicates the average number of days it takes for a company to collect payment after making a sale. For 3M Company, the DSO has fluctuated over the period from March 31, 2020, to December 31, 2024.

Initially, the DSO decreased from 54.40 days on March 31, 2020, to 48.11 days on December 31, 2021, indicating an improvement in their accounts receivable collection efficiency. This downward trend was positive for the company as it meant they were collecting payments more quickly.

However, from March 31, 2022, to December 31, 2024, the DSO began to rise again, reaching a peak of 70.56 days on March 31, 2024, before decreasing slightly to 47.44 days on December 31 2024. This increase in DSO suggests that 3M may be facing challenges in collecting payments promptly, which could impact their cash flow and liquidity.

Overall, monitoring the DSO trend for 3M Company is crucial for assessing their accounts receivable management and the effectiveness of their credit and collection policies. A rising DSO could indicate potential issues in collecting revenue, while a declining DSO signifies improved efficiency in turning sales into cash.