3M Company (MMM)

Inventory turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cost of revenue US$ in thousands 18,477,000 19,232,000 18,795,000 16,605,000 17,136,000
Inventory US$ in thousands 4,822,000 5,372,000 4,985,000 4,239,000 4,134,000
Inventory turnover 3.83 3.58 3.77 3.92 4.15

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $18,477,000K ÷ $4,822,000K
= 3.83

The inventory turnover ratio of 3M Co. has been fluctuating over the past five years. In 2023, the inventory turnover ratio was 3.83, an improvement from 3.58 in 2022 but lower compared to the ratios of 3.77 in 2021, 3.92 in 2020, and 4.15 in 2019.

A higher inventory turnover ratio indicates that 3M Co. is selling its inventory more efficiently, as it is able to sell and replace its inventory more frequently within a given period. Conversely, a lower ratio may suggest overstocking or slow sales, leading to potential liquidity issues and higher carrying costs.

It is important for 3M Co. to monitor and manage its inventory turnover effectively to optimize its working capital and maintain a healthy balance between inventory levels and sales volume. Further analysis of the company's sales trends and inventory management practices could provide insights into the factors influencing the fluctuations in the inventory turnover ratio.


Peer comparison

Dec 31, 2023


See also:

3M Company Inventory Turnover