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.