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