3M Company (MMM)
Quick 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 | 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 |
Receivables | US$ in thousands | 4,750,000 | 4,852,000 | 4,947,000 | 4,638,000 | 4,532,000 | 4,722,000 | 4,914,000 | 4,815,000 | 4,660,000 | 4,916,000 | 4,991,000 | 4,817,000 | 4,705,000 | 4,623,000 | 4,459,000 | 4,821,000 | 4,791,000 | 5,020,000 | 5,374,000 | 5,173,000 |
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 |
Quick ratio | 0.70 | 0.65 | 0.85 | 0.82 | 0.88 | 0.87 | 0.80 | 0.89 | 1.04 | 1.11 | 1.11 | 1.19 | 1.23 | 1.24 | 1.23 | 1.02 | 1.56 | 1.63 | 1.15 | 1.21 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,933,000K
+ $53,000K
+ $4,750,000K)
÷ $15,297,000K
= 0.70
The quick ratio of 3M Co. has exhibited some variability over the past eight quarters, ranging from a low of 0.72 in Q3 2023 to a high of 1.00 in Q1 2022. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
A quick ratio below 1.00 indicates that the company may have difficulty meeting its short-term obligations without relying on selling inventory. The trend in 3M Co.'s quick ratio indicates some fluctuation but generally remains slightly below 1.00, suggesting potential liquidity challenges in the short term.
Although the quick ratio is below 1.00 in most quarters, the company has managed to maintain a level above 0.70, indicating that it still has some capacity to meet its short-term obligations with its liquid assets. However, investors and creditors may prefer a quick ratio closer to or above 1.00 to ensure a stronger ability to cover short-term liabilities without relying on inventory.
Overall, the trend in 3M Co.'s quick ratio suggests that the company should focus on managing its liquidity effectively to ensure it can meet its short-term obligations without issues in the future.
Peer comparison
Dec 31, 2023