3M Company (MMM)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 32,681,000 | 32,747,000 | 33,054,000 | 33,431,000 | 34,229,000 | 34,762,000 | 35,085,000 | 35,333,000 | 35,355,000 | 35,326,000 | 34,734,000 | 32,960,000 | 32,184,000 | 31,712,000 | 31,353,000 | 32,348,000 | 32,136,000 | 31,970,000 | 32,131,000 | 32,350,000 |
| Receivables | US$ in thousands | 4,750,000 | 4,852,000 | 4,947,000 | 4,638,000 | 4,532,000 | 4,722,000 | 4,914,000 | 4,815,000 | 4,660,000 | 4,916,000 | 4,991,000 | 4,817,000 | 4,705,000 | 4,623,000 | 4,459,000 | 4,821,000 | 4,791,000 | 5,020,000 | 5,374,000 | 5,173,000 |
| Receivables turnover | 6.88 | 6.75 | 6.68 | 7.21 | 7.55 | 7.36 | 7.14 | 7.34 | 7.59 | 7.19 | 6.96 | 6.84 | 6.84 | 6.86 | 7.03 | 6.71 | 6.71 | 6.37 | 5.98 | 6.25 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $32,681,000K ÷ $4,750,000K
= 6.88
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable during a specific period. A higher turnover ratio indicates that the company is collecting its receivables more quickly.
Analyzing the trend in 3M Co.'s receivables turnover ratio over the past eight quarters reveals a consistent pattern. The ratio has shown a slight decline from Q1 2022 to Q3 2022, followed by an increase in Q4 2022. However, in 2023, the ratio has been fluctuating within a relatively narrow range, with values between 6.68 and 7.21.
Overall, while the trend in 3M Co.'s receivables turnover ratio has shown some variability, the company has generally maintained a healthy level of efficiency in collecting its accounts receivable. Further analysis of the underlying reasons for the fluctuations in the ratio may provide insights into the company's receivables management practices and overall financial performance.
Peer comparison
Dec 31, 2023