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


See also:

3M Company Cash Ratio (Quarterly Data)