3M Company (MMM)
Cash ratio
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cash and cash equivalents | US$ in thousands | 5,933,000 | 5,140,000 | 4,258,000 | 3,824,000 | 3,655,000 | 3,404,000 | 2,722,000 | 3,247,000 | 4,564,000 | 4,878,000 | 4,695,000 | 4,636,000 | 4,634,000 | 4,121,000 | 4,219,000 | 4,253,000 | 9,000,000 | 7,731,000 | 2,849,000 | 2,938,000 |
Short-term investments | US$ in thousands | 53,000 | 73,000 | 56,000 | 145,000 | 238,000 | 185,000 | 262,000 | 112,000 | 201,000 | 855,000 | 805,000 | 501,000 | 404,000 | 440,000 | 247,000 | 224,000 | 568,000 | 30,000 | 139,000 | 539,000 |
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 |
Cash ratio | 0.39 | 0.34 | 0.39 | 0.38 | 0.41 | 0.38 | 0.30 | 0.37 | 0.53 | 0.60 | 0.58 | 0.61 | 0.63 | 0.62 | 0.61 | 0.49 | 1.04 | 0.99 | 0.41 | 0.49 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,933,000K
+ $53,000K)
÷ $15,297,000K
= 0.39
The cash ratio of 3M Co. has fluctuated over the past eight quarters, ranging from 0.40 to 0.51. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In Q2 2023, the cash ratio was at its highest point during this period at 0.51, indicating that 3M had $0.51 in cash and cash equivalents for every dollar of short-term liabilities. This suggests a healthy liquidity position, as the company had a relatively higher level of liquid assets to meet its immediate obligations.
Conversely, in Q2 2022, the cash ratio was at its lowest point at 0.40. This indicates that the company had $0.40 in cash and cash equivalents for every dollar of short-term liabilities, implying a relatively lower liquidity position compared to other quarters.
Overall, fluctuations in the cash ratio can be influenced by factors such as changes in the company's operating cash flow, investments in capital expenditures, debt repayments, or strategic decisions related to cash management. Investors and analysts closely monitor the cash ratio as a key indicator of a company's short-term liquidity and financial health.
Peer comparison
Dec 31, 2023