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


See also:

3M Company Quick Ratio (Quarterly Data)