3M Company (MMM)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 5,600,000 | 6,050,000 | 10,083,000 | 10,911,000 | 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 |
| Short-term investments | US$ in thousands | 2,128,000 | 1,245,000 | 255,000 | 60,000 | 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 |
| Receivables | US$ in thousands | 3,194,000 | 3,528,000 | 3,575,000 | 4,750,000 | 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 |
| Total current liabilities | US$ in thousands | 11,256,000 | 11,391,000 | 14,345,000 | 13,156,000 | 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 |
| Quick ratio | 0.97 | 0.95 | 0.97 | 1.19 | 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 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,600,000K
+ $2,128,000K
+ $3,194,000K)
÷ $11,256,000K
= 0.97
The quick ratio of 3M Company has experienced fluctuations over the period from March 31, 2020, to December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
Initially, the quick ratio stood at 1.02 on March 31, 2020, indicating that 3M had just enough liquid assets to cover its current liabilities. The ratio improved slightly to 1.23 by June 30, 2020, and remained relatively stable around 1.2 until December 31, 2021.
However, starting from March 31, 2022, the quick ratio began to decline, dropping to 0.89 and further to 0.80 by June 30, 2022. This downward trend continued until September 30, 2023, when the quick ratio reached its lowest point of 0.65, implying potential liquidity challenges.
The quick ratio saw a significant improvement by March 31, 2024, jumping back to 1.19, indicating a healthier liquidity position. However, the ratio fluctuated in the following quarters, hovering around 0.95 to 1.0 by December 31, 2024.
Overall, the quick ratio of 3M Company has shown variability over time, reflecting fluctuations in the company's ability to meet its short-term obligations with its liquid assets. It is essential for investors and stakeholders to monitor this ratio to assess the company's liquidity risk and financial health.
Peer comparison
Dec 31, 2024