3M Company (MMM)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.69 | 6.04 | 6.28 | 6.48 | 7.69 | |
| Number of days of payables | days | 64.10 | 60.41 | 58.14 | 56.29 | 47.46 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.69
= 64.10
The number of days of payables for 3M Co. has been increasing steadily over the past five years. As of December 31, 2023, the company took an average of 64.10 days to pay its trade payables, compared to 60.41 days in the prior year and 58.14 days in the year before that. This indicates that 3M Co. is taking slightly longer to settle its outstanding payables year over year.
The trend suggests that 3M Co. may be managing its working capital more efficiently by stretching out its payment periods to suppliers. This strategy can help the company free up cash flow and improve liquidity. However, it is important to monitor the number of days of payables closely to ensure that it does not negatively impact relationships with suppliers or lead to any inefficiencies in the supply chain.
Peer comparison
Dec 31, 2023