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


See also:

3M Company Working Capital Turnover (Quarterly Data)