Despite some calls to modernize, MM persists because of its advantages for clarity, precision, and familiarity. 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. If the company sells 26,000 units, the accountant can record that as 26M units. If net income runs to $6,500,000, it goes on the books as $6.5MM.
Why do bankers use M instead of K? TheStory Behind the MM Convention
8,22,90,000 or 8.22 crores is equal to one million dollars in rupees. The “MM” is just stylistics and is not meant to be “doubled.” Therefore, what are retained earnings “10 MM USD” is simply US$10 million, or US$10,000,000. 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.
Historical Context of MM in Finance
Frequently, in finance and Bookstime accounting settings now, an analyst will use k to denote thousands and a capitalized M to denote millions. The Latin numeral MM is frequently used to designate that the units used in presenting information (financial and non-financial) are in millions. The example below shows how figures can be portrayed in millions. Territory includes Washington, Oregon, Montana, Idaho, Hawaii, Alaska, California, and Utah. Darrel has over 30 years of proven success and is skilled in developing relationships with internal and external stakeholders to drive superior business results.
- The Latin numeral MM is frequently used to designate that the units used in presenting information (financial and non-financial) are in millions.
- 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”).
- These technologies had character limits, so accountants and bankers adopted the shorthand to save space.
- The seven letters in Roman numerals are I, V, X, L, C, D, and M.
- This article looks at how we started using million and billion and how the meaning of billion has changed.
- Whether the topic is significant sums of money or a massive quantity of something, it’s common to use abbreviations when writing out large numbers in text.
Examples of MM (Million)
Review a few examples of sentences that feature common abbreviations for million. You can use any of the above abbreviations for thousand options when referring to thousands in writing. While the letter “k” is the most common abbreviation, there are a few different ways to abbreviate thousand.
As a data analyst who works closely with the finance industry, I‘ve always been fascinated by the ubiquitous use of “MM” as an abbreviation for millions among banking and accounting professionals. It differs from the standard “k” and “M” abbreviations used in the metric system and most other sectors. I decided to take a deep dive into the origins and rationale behind “MM” to better understand this unique element of finance culture. On the other hand, “MM” stands for millions, a convention that has gained widespread acceptance in financial reporting and analysis. The double “M” originates from the Latin “mille mille,” meaning “thousand thousand,” which equates to one million. This notation is particularly useful in corporate finance, investment banking, and other sectors where transactions and valuations frequently reach into the millions.
- In the modern world, we regularly encounter the words million and billion, and businesses, governments, astronomers and journalists often think in the millions, billions or even trillions.
- Stating at the top of the report that “all figures are in millions of dollars” should take care of it.
- Once you get above that amount, you’d say billion or trillion instead of using the numbers.
- As commerce and trade expanded during the Renaissance, the need for more sophisticated financial reporting became apparent.
- If you see “one quintillion,” you know that it’s a lot – and have spatial awareness of what it represents.
- MM is the symbol used for representing the numbers in millions, whereas the symbol m is used as thousand in roman numbers and so mm is thousand multiplied by thousand, which is equal to 1 million.
It allowed accountants and financial analysts to present large figures in a more digestible format, facilitating better decision-making and financial planning. The use of MM is not just about convenience; it also plays a role in standardizing financial reporting. Consistent use of such abbreviations helps maintain uniformity across various documents, whether they are balance sheets, income statements, or cash flow statements. 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. In accounting speak, a written “MM” means a million, whether the accountant is referring to units, dollars, euros or shares.
Abbreviation for Million and Thousand: K & MM Meaning
By adopting “MM,” companies can ensure that their financial reports meet these standards, enhancing their credibility and attractiveness to global investors. The industrial revolution further accelerated the adoption of “MM” in financial reporting. As businesses grew in scale and complexity, the volume of financial data increased exponentially. The what does mm mean in money need for efficient and standardized reporting methods became more pressing, and “MM” emerged as a practical solution.