3M Company (MMM)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	14,447,000	14,498,000	14,567,000	14,724,000	15,852,000	16,642,000	17,654,000	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
Inventory	US$ in thousands	3,698,000	4,039,000	4,060,000	4,897,000	3,944,000	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
Inventory turnover		3.91	3.59	3.59	3.01	4.02	3.29	3.34	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $14,447,000K ÷ $3,698,000K
= 3.91

The inventory turnover ratio for 3M Company has fluctuated over the past few years. It indicates the number of times inventory is sold and replaced within a specific period. A higher turnover ratio is generally favorable as it suggests efficient management of inventory.

From March 2020 to December 2022, the inventory turnover ratio ranged between 3.45 and 4.15, reflecting some stability. However, there was a notable decrease in the ratio in the following period, dropping from 4.02 in December 2023 to 3.01 in March 2024.

This decline may signal slower sales relative to the level of inventory on hand, which could be a concern for the company's overall efficiency and liquidity. Further analysis into the company's sales trends and inventory management practices would be necessary to determine the underlying reasons for this decrease and any potential impact on 3M Company's financial health.