3M Co (XSWX:MMM) Cash Conversion Cycle : 91.06 (As of Dec. 2023)

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What is 3M Co Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

3M Co's Days Sales Outstanding for the three months ended in Dec. 2023 was 55.78.
3M Co's Days Inventory for the three months ended in Dec. 2023 was 98.42.
3M Co's Days Payable for the three months ended in Dec. 2023 was 63.14.
Therefore, 3M Co's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 91.06.

3M Co Cash Conversion Cycle Historical Data

The historical data trend for 3M Co's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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3M Co Cash Conversion Cycle Chart

3M Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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98.87

98.34

82.53

88.18

92.66

3M Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Cash Conversion Cycle	Get a 7-Day Free Trial															101.76	95.58	95.70	93.77	91.06

Competitive Comparison of 3M Co's Cash Conversion Cycle

For the Conglomerates subindustry, 3M Co's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

3M Co's Cash Conversion Cycle Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, 3M Co's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where 3M Co's Cash Conversion Cycle falls into.

3M Co Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

3M Co's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	53.79	+	104.79	-	65.92
	=	92.66

3M Co's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	55.78	+	98.42	-	63.14
	=	91.06

3M Co (XSWX:MMM) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.

Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.

3M Co Cash Conversion Cycle Related Terms

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3M Co (XSWX:MMM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » 3M Co (XSWX:MMM) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

MMM:USA MMM:Mexico 1MMM:Italy MMMd:UK MMM:Germany MMM:Chile MMMC34:Brazil MMM:Austria MMM:Argentina

Address

3M Center, St. Paul, MN, USA, 55144

Website

https://www.3m.com

3M is a multinational conglomerate that has operated since 1902, when it was known as Minnesota Mining and Manufacturing. The company is well known for its research and development laboratory and it leverages its science and technology across multiple product categories. As of 2020, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. Nearly 50% of the company's revenue comes from outside the Americas, with the safety and industrial segment constituting a plurality of net sales. Many of the company's 60,000-plus products touch and concern a variety of consumers and end markets.