3M Company (MMM)

Payables 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
Payables	US$ in thousands	3,245,000	3,104,000	3,231,000	3,130,000	3,183,000	3,063,000	3,273,000	3,164,000	2,994,000	2,862,000	2,931,000	2,670,000	2,561,000	2,208,000	1,975,000	2,207,000	2,228,000	2,079,000	2,130,000	2,309,000
Payables turnover		5.69	5.92	5.74	6.08	6.04	6.32	5.95	6.04	6.28	6.46	6.12	6.37	6.48	7.49	8.32	7.67	7.69	8.11	7.91	7.26

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $18,477,000K ÷ $3,245,000K
= 5.69

The payables turnover ratio for 3M Co. has shown some variability over the past eight quarters. It ranged between 5.69 and 6.32 during this period. Generally, a higher payables turnover ratio indicates that the company is paying off its suppliers more quickly relative to its purchases.

The decreasing trend from Q3 2022 to Q4 2023 might suggest that 3M Co. is taking longer to pay its suppliers or has increased its purchases. A lower payables turnover ratio could indicate potential cash flow issues or strained supplier relationships if not managed effectively.

Overall, 3M Co. should monitor its payables turnover ratio closely to ensure efficient management of its accounts payable and maintain healthy supplier relationships.