3M Company (MMM)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		5.43	5.40	6.04	6.28	6.48
Number of days of payables	days	67.20	67.63	60.41	58.14	56.29

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.43
= 67.20

3M Company's number of days of payables has shown a gradual increase over the years, indicating a trend towards a longer period to settle its accounts payable. From 56.29 days as of December 31, 2020, the number of days of payables increased to 58.14 days by December 31, 2021, and further rose to 60.41 days by December 31, 2022. This trend continued, with the number of days of payables reaching 67.63 days as of December 31, 2023, and slightly dropping to 67.20 days by December 31, 2024.

The increase in the number of days of payables suggests that 3M Company may be taking longer to pay its suppliers or vendors, which could indicate potential liquidity or cash flow challenges. However, a slight decrease in the number of days of payables in the latest period may indicate some improvement in managing payables. It is essential for analysts to monitor this metric closely in conjunction with other financial ratios to assess 3M Company's overall financial health and efficiency in managing its working capital.