3M Co. (MMM)

• Annual Data
• Quarterly Data

3M Co., short-term (operating) activity ratios

Source: Based on data from 3M Co. Annual Reports

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	3M Co.'s inventory turnover improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	3M Co.'s receivables turnover deteriorated from 2015 to 2016 and from 2016 to 2017.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	3M Co.'s payables turnover declined from 2015 to 2016 and from 2016 to 2017.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	3M Co.'s working capital turnover deteriorated from 2015 to 2016 and from 2016 to 2017.
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	3M Co.'s average inventory processing period improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	3M Co.'s average receivable collection period deteriorated from 2015 to 2016 and from 2016 to 2017.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	3M Co.'s operating cycle deteriorated from 2015 to 2016 and from 2016 to 2017.
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	3M Co.'s cash conversion cycle improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

• Annual Data
• Quarterly Data

3M Co., inventory turnover calculation, comparison to benchmarks

Source: Based on data from 3M Co. Annual Reports

2017 Calculations

Ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	3M Co.'s inventory turnover improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

• Annual Data
• Quarterly Data

3M Co., receivables turnover calculation, comparison to benchmarks

Source: Based on data from 3M Co. Annual Reports

2017 Calculations

Ratio	Description	The company
Receivables turnover	An activity ratio equal to revenue divided by receivables.	3M Co.'s receivables turnover deteriorated from 2015 to 2016 and from 2016 to 2017.

• Annual Data
• Quarterly Data

3M Co., payables turnover calculation, comparison to benchmarks

Source: Based on data from 3M Co. Annual Reports

2017 Calculations

Ratio	Description	The company
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	3M Co.'s payables turnover declined from 2015 to 2016 and from 2016 to 2017.

• Annual Data
• Quarterly Data

3M Co., working capital turnover calculation, comparison to benchmarks

Source: Based on data from 3M Co. Annual Reports

2017 Calculations

Ratio	Description	The company
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	3M Co.'s working capital turnover deteriorated from 2015 to 2016 and from 2016 to 2017.

• Annual Data
• Quarterly Data

3M Co., average inventory processing period calculation, comparison to benchmarks

Source: Based on data from 3M Co. Annual Reports

2017 Calculations

Ratio	Description	The company
Average inventory processing period	An activity ratio equal to the number of days in the period divided by inventory turnover over the period.	3M Co.'s average inventory processing period improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

• Annual Data
• Quarterly Data

3M Co., average receivable collection period calculation, comparison to benchmarks

Source: Based on data from 3M Co. Annual Reports

2017 Calculations

Ratio	Description	The company
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	3M Co.'s average receivable collection period deteriorated from 2015 to 2016 and from 2016 to 2017.

• Annual Data
• Quarterly Data

3M Co., operating cycle calculation, comparison to benchmarks

No. of days

Source: Based on data from 3M Co. Annual Reports

2017 Calculations

Ratio	Description	The company
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	3M Co.'s operating cycle deteriorated from 2015 to 2016 and from 2016 to 2017.

• Annual Data
• Quarterly Data

3M Co., average payables payment period calculation, comparison to benchmarks

Source: Based on data from 3M Co. Annual Reports

2017 Calculations

Ratio	Description	The company
Average payables payment period	An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

• Annual Data
• Quarterly Data

3M Co., cash conversion cycle calculation, comparison to benchmarks

No. of days

Source: Based on data from 3M Co. Annual Reports

2017 Calculations

Ratio	Description	The company
Cash conversion cycle	A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period.	3M Co.'s cash conversion cycle improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.