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.


Peer comparison

Dec 31, 2023


See also:

3M Company Payables Turnover (Quarterly Data)