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.