That letter isn’t Greek or Roman, but the average reader would likely understand the concept. You’d look for a G or MMM in the world of financial analysis and accounting. If you had a commercial property valued at $92 million, a modern writer would likely abbreviate the expression by saying it was worth $92M. In accounting and financial analysis terms, we know that reads as 92 thousand dollars, but the context allows us to understand the expression’s intent. In accounting speak, a written “MM” means a million, whether the accountant is referring to https://www.bookstime.com/ 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.
- 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.”
- 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.
- 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”).
- The use of “MM” became more entrenched as these standards aimed to harmonize financial reporting across different jurisdictions, ensuring consistency and comparability.
- Most financial sums are tracked in ones, tens, hundreds, thousands, and ten thousands.
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- 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.
- Thankfully, that conversation let me understand a future one where I was given quotes for a single and an aggregate line of authority.
- We still use Roman numerals for some accounting methods, while large figures are designated by the Greek alphabetic equivalent of the specific term.
- If the company sells 26,000 units, the accountant can record that as 26M units.
- After analyzing its history and modern use, I have a new appreciation for how deeply rooted MM is within finance culture, likely to endure for the foreseeable future.
Regretfully, until the USA goes metric there’s going to continue to be problem with this. Content contained on or made available through the website is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on the website or materials linked from the Web is at your own risk. Thankfully, that conversation let me understand a future one where I was given quotes for a single and an aggregate line of authority. They said what does mm mean in business it was $3MM and $12MM, respectively, so I knew they meant $3 million and $12 million. The Indian numeral system is slightly different from what Western countries use while incorporating Arabic numerals.
Examples of MM (Million)
These abbreviations simplify the reading and comprehension of financial documents. If you have to spend time counting how many zeroes are after a number to understand the full amount, it’ll take extra time to understand what is being communicated to you by an accountant. In various aspects of finance such as budgeting, financial analysis, reporting, and forecasting, the use of MM aids in ensuring accuracy and precision. “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. Later on, the rise of typewriters and early digital spreadsheets continued this practice of using M and MM abbreviations.
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This uniformity is crucial for analysts and investors who rely on these documents to make informed decisions. For example, when comparing financial statements from different companies, the use of MM ensures that figures are easily comparable, reducing the risk of misinterpretation. The choice between “M” and “MM” can also be influenced by regional practices and industry standards.
The use of “MM” became more entrenched as these standards aimed to harmonize https://www.facebook.com/BooksTimeInc/ financial reporting across different jurisdictions, ensuring consistency and comparability. “M” is derived from the Roman numeral for 1,000, and it is often used to denote thousands. This usage is prevalent in various industries and contexts, particularly in the United States, where it simplifies the representation of large numbers without overwhelming the reader with zeros. Yes, MM is recognized globally in the world of finance and accounting to represent one million.
