3M Company (MMM)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 24,575,000 | 24,567,000 | 24,543,000 | 24,571,000 | 26,586,000 | 28,663,000 | 31,012,000 | 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 |
| Receivables | US$ in thousands | 3,194,000 | 3,528,000 | 3,575,000 | 4,750,000 | 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 |
| Receivables turnover | 7.69 | 6.96 | 6.87 | 5.17 | 5.60 | 5.91 | 6.27 | 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $24,575,000K ÷ $3,194,000K
= 7.69
3M Company's receivables turnover ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The receivables turnover ratio measures how efficiently the company is able to collect payments from its customers.
From March 31, 2020, to March 31, 2021, the ratio was relatively stable, ranging between 6.71 and 6.84. This indicates that on average, the company collected its outstanding receivables approximately 6.8 times during the year.
There was a slight increase in the receivables turnover from June 30, 2021, to December 31, 2021, reaching 7.59, which suggests that the company improved its collection efficiency during this period.
Subsequently, from March 31, 2022, to September 30, 2023, the ratio fluctuated between 7.21 and 5.91. The decrease in receivables turnover during this period may indicate potential issues with collections efficiency or changes in the company's credit policies.
From December 31, 2023, to December 31, 2024, there was a significant improvement in the receivables turnover ratio, increasing from 5.60 to 7.69, indicating enhanced efficiency in collecting payments from customers.
Overall, the trend in the receivables turnover ratio for 3M Company shows variability with some periods of improvement and others showing potential challenges in collections efficiency. It is important for the company to monitor this ratio to ensure timely collection of receivables and efficient management of working capital.
Peer comparison
Dec 31, 2024