Whether the topic is significant what does mm mean in money sums of money or a massive quantity of something, it’s common to use abbreviations when writing out large numbers in text. B for billion isn’t Greek or Roman; it is just the first letter of the word billion. Now that you know several large number abbreviations, you have access to several options you can use in your reports or other forms of writing.
What does MM and M mean in dollars?
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. If you had a commercial property valued at $92 million, a modern writer would likely abbreviate the expression by saying it was worth $92M.
The Pros of MM for Banking
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. While obscure outside banking circles, MM enjoys near universal usage within finance and accounting as the standard abbreviation for “millions”. This convention originated from Roman numeral accounting traditions and became engrained centuries ago. Stating at the top of the report that “all figures are in millions of dollars” should take care of it. Moreover, the use of “MM” aligns with the principles of transparency and comparability advocated by international accounting standards. Organizations like the International Financial Reporting Standards (IFRS) emphasize the need for consistent and comparable financial statements.
- There are actually a few different ways that 1,000,000 can be expressed when it comes to writing dollar amounts.
- Darrel has over 30 years of proven success and is skilled in developing relationships with internal and external stakeholders to drive superior business results.
- While obscure outside banking circles, MM enjoys near universal usage within finance and accounting as the standard abbreviation for “millions”.
- The Notation MM for representing Millions is becoming less common as it creates confusion between the representation of M and MM, whereas the M denotes the Thousand.
- The Romans incorporated seven letters to represent different numbers for a standard counting method to simplify that situation.
- For example, the Roman numeral MM is frequently used to designate that the units used in presenting information (financial and non-financial) in millions.
Where Does the mm Abbreviation Come From?
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 it was $3MM and $12MM, https://www.bookstime.com/ respectively, so I knew they meant $3 million and $12 million. The cardinal number is automatically recognized when using M or MM in accounting. Even if you have a significant figure to represent, such as 12 billion, you could still write it as 1200MM, which would be understood. The seven letters in Roman numerals are I, V, X, L, C, D, and M. These figures have values of 1, 5, 10, 50, 100, 500, and 1,000.
These Rules Apply to Western Figure Representation
Analysts use it to project future revenues, expenses, and other financial metrics. By using MM, they can create models that are bookkeeping not only easier to read but also more efficient to work with. This is particularly important in scenarios where quick decision-making is required, such as during mergers and acquisitions or when assessing investment opportunities.
