3M Company (MMM)
Working capital 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 |
| Total current assets | US$ in thousands | 15,884,000 | 16,299,000 | 19,515,000 | 21,613,000 | 16,379,000 | 16,198,000 | 15,754,000 | 14,963,000 | 14,688,000 | 14,895,000 | 14,514,000 | 14,452,000 | 15,403,000 | 16,426,000 | 16,343,000 | 15,345,000 | 14,982,000 | 14,110,000 | 14,106,000 | 15,090,000 |
| Total current liabilities | US$ in thousands | 11,256,000 | 11,391,000 | 14,345,000 | 13,156,000 | 15,297,000 | 15,466,000 | 10,936,000 | 10,556,000 | 9,523,000 | 9,543,000 | 9,896,000 | 9,152,000 | 9,035,000 | 9,635,000 | 9,440,000 | 8,363,000 | 7,948,000 | 7,410,000 | 7,282,000 | 9,134,000 |
| Working capital turnover | 5.31 | 5.01 | 4.75 | 2.91 | 24.57 | 39.16 | 6.44 | 7.59 | 6.63 | 6.50 | 7.60 | 6.67 | 5.55 | 5.20 | 5.03 | 4.72 | 4.58 | 4.73 | 4.59 | 5.43 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $24,575,000K ÷ ($15,884,000K – $11,256,000K)
= 5.31
The working capital turnover ratio for 3M Company has shown fluctuations over the periods indicated in the data. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover ratio generally suggests that the company is effectively managing its working capital to support its operations.
In the period from March 31, 2020, to September 30, 2021, the working capital turnover ratio showed a consistent increasing trend, reaching a peak of 5.55 on December 31, 2021. This indicated an improvement in the company's efficiency in converting working capital into revenue during this period.
However, from March 31, 2022, to September 30, 2023, there was volatility in the working capital turnover ratio, with the ratio reaching as high as 39.16 on September 30, 2023. Such a drastic increase could be a result of various factors, such as significant changes in sales or working capital management practices.
From March 31, 2024, to December 31, 2024, the working capital turnover ratio stabilized around the range of 2.91 to 5.31. This stability may indicate that the company has reevaluated its working capital management strategies to maintain a more consistent turnover ratio.
Overall, it is important for 3M Company to closely monitor and analyze its working capital turnover ratio to ensure efficient utilization of working capital in generating sales revenue and to maintain stable financial performance.
Peer comparison
Dec 31, 2024