3M Company (MMM)
Inventory turnover
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cost of revenue (ttm) | US$ in thousands | 18,477,000 | 18,384,000 | 18,532,000 | 19,019,000 | 19,232,000 | 19,345,000 | 19,470,000 | 19,096,000 | 18,795,000 | 18,485,000 | 17,935,000 | 17,021,000 | 16,605,000 | 16,542,000 | 16,427,000 | 16,935,000 | 17,136,000 | 16,871,000 | 16,842,000 | 16,756,000 |
Inventory | US$ in thousands | 4,822,000 | 5,065,000 | 5,280,000 | 5,306,000 | 5,372,000 | 5,615,000 | 5,645,000 | 5,290,000 | 4,985,000 | 4,950,000 | 4,842,000 | 4,458,000 | 4,239,000 | 3,984,000 | 4,168,000 | 4,217,000 | 4,134,000 | 4,007,000 | 4,300,000 | 4,538,000 |
Inventory turnover | 3.83 | 3.63 | 3.51 | 3.58 | 3.58 | 3.45 | 3.45 | 3.61 | 3.77 | 3.73 | 3.70 | 3.82 | 3.92 | 4.15 | 3.94 | 4.02 | 4.15 | 4.21 | 3.92 | 3.69 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $18,477,000K ÷ $4,822,000K
= 3.83
The inventory turnover for 3M Co. fluctuated over the past eight quarters, ranging from a low of 3.45 in Q3 and Q2 of 2022 to a high of 3.83 in Q4 of 2023. Overall, the company's inventory turnover has been relatively stable, indicating that on average, the company sells and replenishes its inventory approximately 3.5 to 3.8 times per year. This implies that 3M Co. is efficiently managing its inventory levels and is able to sell its products multiple times a year, which is a positive sign of operational efficiency. However, further analysis and comparison with industry standards would provide more insights into the company's inventory management performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023