3M Company (MMM)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 12,971,000 | 18,020,000 | 14,051,000 | 14,374,000 |
| Total current liabilities | US$ in thousands | 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 | 9,222,000 | 7,821,000 | 7,265,000 | 7,125,000 |
| Working capital turnover | 30.20 | 44.74 | 6.86 | 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 | 8.57 | 3.13 | 4.73 | 4.46 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $32,681,000K ÷ ($16,379,000K – $15,297,000K)
= 30.20
The working capital turnover of 3M Co. has shown varying trends over the past eight quarters. In Q4 2023, the working capital turnover was 30.20, significantly higher compared to the previous quarter at 44.74. This surge indicates that the company was able to efficiently utilize its working capital to generate sales.
However, in Q2 2023 and Q1 2023, the working capital turnover dropped to 6.86 and 7.59, respectively, reflecting a less efficient use of working capital in generating revenue during those periods.
Comparing the latest ratio to the same quarter of the previous year, Q4 2022 had a much lower working capital turnover rate of 6.63. This suggests an improvement in the management of working capital efficiency over the year.
Overall, the working capital turnover ratio has demonstrated fluctuations, indicating varying levels of efficiency in utilizing working capital to generate revenue. It is important for 3M Co. to analyze the reasons behind these fluctuations and strive for consistent and optimal management of working capital.
Peer comparison
Dec 31, 2023