MM Millions Definition, Examples, What MM Means

We’ll explain the correct abbreviation for “million” in this article. Unfortunately, there isn’t a consistent approach to labeling units. The least ambiguous approach is to simply write them out in words, such as “$ thousands.” This is CFI’s recommended method, to avoid any potential confusion.

You might come across “mm” in scientific or engineering fields, where different values are required, and they can reach well into the millions as a unit. “mm” (which is usually kept in the lower case) is an old-fashioned abbreviation that doesn’t see much common usage. You’ll find that it’s mainly used in the energy sector, but it otherwise doesn’t get recognized. In this example, we intentionally chose a piece of analysis that contained various different units, such as dollars and shares.

Where Does the mm Abbreviation Come From?

In finance and accounting, MM (or lowercase “mm”) denotes that the units of figures presented are in millions. Thus, MM is the same as writing “M multiplied by M,” which is equal to “1,000 times 1,000”, which equals 1,000,000 (one million). This guide will explore how the notation should be used, as well as alternative symbols that are used in practice.

• For example, within financial statements, the industry-standard abbreviation is M for a thousand, while in everyday life, the abbreviation of K for a thousand is usually the acceptable one.
• Because we have multiple options to choose from when selecting an abbreviation, it is important to use context to make the proper selection.
• When an analyst must present various different types of units, it is recommended to add a “units” column so that each item contains a label for easy reference.
• This numerical system has the digits 0, 1, 2, 3, 4, 5, 6, 7, 8, 9.
• Outside of finance and accounting, it is common to find the value of a thousand abbreviated as (K), the value of a million abbreviated as (M), and the value of a billion abbreviated as (B).

“M” is the official abbreviation used whenever a million units of something are requested. If you think there’s any possibility of your use of MM being confusing or being misinterpreted, you’re safer writing out the numbers or using “millions.” Because we have multiple options to choose from when selecting an abbreviation, it is important to use context to make the proper selection. The Hindu – Arabic numeral system is what we have used ever since. This numerical system has the digits 0, 1, 2, 3, 4, 5, 6, 7, 8, 9.

Everything You Need To Master Financial Modeling

Within finance and accounting, we often find something quite different. For example, a thousand is often abbreviated as (M), a million is abbreviated as (MM), and a billion is abbreviated as (BN) or (MMM). If you’re confused about the letter designations that stand for thousands and millions, you’re not https://www.bookstime.com/articles/startup-bookkeeping alone. This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. “MM” is an old-fashioned abbreviation, but it still sees some usage today.

We often find the abbreviation (mm) on financial statements, which stands for millions. Unfortunately, this practice can occasionally cause confusion within the financial industry as multiple numerical what does mm mean abbreviations are used interchangeably within society. For instance, if a company reports a revenue of $50 MM for the year 2022, it means that the company earned a total of $50 million for that year.

Can you solve 4 words at once?

It was first created in India, and from there, it progressively spread to Arabia and China. The numerical transformation post 13th century in Europe is largely credited to Leonardo of Pisa, also known as Fibonacci. In 1202, he wrote a book called “The Book of Calculation,” in which he advocated for conducting mathematical equations with the Hindu-Arabic numeral system as opposed to the Roman numeral system. At Old Republic Surety we seek to deliver transparency and clarity in our communications. If you see an abbreviation that is confusing or unclear, please reach out to your local underwriter or branch for clarification, even if you are just asking for a friend.

Darrel has over 30 years of proven success and is skilled in developing relationships with internal and external stakeholders to drive superior business results. I generally use $___MM, which was, and still is, often used by accountants and economists. Before “K” was adopted as the colloquial way of writing a thousand (i.e. $35k to mean $35,000), it was common to use “M” instead; “M” being the Roman Numeral for 1,000. As a result, “M” simply became shorthand for adding three zeros and thus “MM” became the shorthand for adding six zeros. I have seen million, billion, and trillion abbreviated as M, B, and T respectively. “M” is only used as an abbreviation when talking about a lot of money or in scientific communities.

Correct Abbreviation for “Million” in The UK

The cost of goods sold was $300,000,000, and the operating expenses were $80,000,000. If a financial statement has a lot of large figures, the accountant may simply dispense with abbreviations. Stating at the top of the report that “all figures are in millions of dollars” should take care of it. What matters is that readers look at the figures and understand the amounts. In accounting speak, a written “MM” means a million, whether the accountant is referring to units, dollars, euros or shares. Rather than writing $400,000,000 or $400 million, the accountant can use the MM abbreviation and write $400MM instead.

• I generally use $___MM, which was, and still is, often used by accountants and economists.
• If, say, you use it for both units and dollars in the same document, separate the different categories so your readers don’t get confused.
• Within finance and accounting, we often find something quite different.
• A global tech company, Tech&Tech, reported total revenue of $800,000,000 for the fiscal year 2021.
• The cost of goods sold was $300,000,000, and the operating expenses were $80,000,000.

You have to be careful when using it or interpreting it because MM can stand for other things too. A global tech company, Tech&Tech, reported total revenue of $800,000,000 for the fiscal year 2021. Calculate the company’s net profit margin and express it in MM. “M” is the most common abbreviation for “million.” If you’re going to abbreviate “million,” it would usually turn into this form. It makes the most sense considering that “million” starts with the letter “M.” Most abbreviations follow this standard practice.

When an analyst must present various different types of units, it is recommended to add a “units” column so that each item contains a label for easy reference. A small-scale clothes manufacturing company, Weavers & Co., records the following data in its income statement. Let us convert the data into a notation of millions for a clear and concise representation. Territory includes Washington, Oregon, Montana, Idaho, Hawaii, Alaska, California, and Utah.

Similarly, if an investor purchases 1 MM shares of a company’s stock, this indicates that the investor has acquired 1 million shares of the company’s stock. “M” is the only acceptable abbreviation to use for “million” in UK English. You’ll find that a lot of UK native speakers won’t even know what “mm” stands for (outside of the “millimeter” measurement that is abbreviated to “mm”).