3M Company (MMM)

Days of sales outstanding (DSO)

		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
Receivables turnover		6.88	6.75	6.68	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	6.71	6.37	5.98	6.25
DSO	days	53.05	54.08	54.63	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	54.42	57.31	61.05	58.37

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.88
= 53.05

To analyze 3M Co.'s Days of Sales Outstanding (DSO) trend, we can observe fluctuations in the metric over the past eight quarters. The DSO represents the average number of days it takes for the company to collect revenue after making a sale.

From Q4 2022 to Q1 2023, the DSO increased from 48.33 days to 50.64 days, indicating a slight deterioration in the company's ability to collect payments from customers efficiently. However, in Q2 2023, the DSO reached 54.63 days, showing a significant increase from the previous quarter, which could suggest potential challenges with accounts receivable management during that period.

Subsequently, in Q3 2023, the DSO decreased slightly to 54.08 days, followed by a further reduction to 53.05 days in Q4 2023. These declines may indicate improvements in the collection process or a more effective credit management strategy by 3M Co.

Overall, the trend in 3M Co.'s DSO over the past eight quarters suggests some variability in the company's ability to collect revenue promptly, with notable fluctuations seen in recent quarters. Further analysis and monitoring of DSO levels will be essential to assess the efficiency of 3M Co.'s accounts receivable management going forward.