In internet record keeping, for instance, CPM is the cost per thousand impressions of an internet ad. The barred M was necessary because the Romans didn’t use zero, and they didn’t like using more than Accounts Receivable Outsourcing three identical letters in a row. If you can’t go above three M’s in a row, you can’t get to 4,000, which would be MMMM.

The Design of Books, An Explainer for Authors, Editors, Agents, and Other Curious Readers, by Debbie Berne

Businesses use MM extensively in presentations, spreadsheets, and investor reports to improve clarity. mm means millions The finance term MM, denoting ‘Million’, is important due to its wide usage in financial documents, reports, and communications to represent large quantities of money. 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. I know I have seen jobs posted that pay $50K, and K is meant to stand in for a thousand.

Understanding MM in Finance: Usage, Differences, and Impact

It originates from the Roman numeral, M, for thousand, and MM is used to indicate one thousand thousands, which makes a million. It is commonly used in financial documents, or when discussing budgets, earnings, or other financial data. 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.

What is m in terms of money?

For example, an annual salary of $60,000 might appear as $60k instead of $60M. 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. But due to confusion between M and MM, now the alternative notations are used for representing thousands and millions. For Representation of Thousand, K is used as an abbreviation, and for representing Million, Single M is denoted as an abbreviation. Below is a break down of subject weightings in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.

What does M and MM stand for?

The “MM” is just stylistics and is not meant to be “doubled.” Therefore, “10 MM USD” is simply US$10 million, or US$10,000,000. For the past 52 years, Harold Averkamp (CPA, MBA) hasworked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

• Abbreviating “hundred” as “H” would be strange, because it’s not an abbreviation you’re likely to find anywhere else.
• Generally, the abbreviation with two M’s is preferred in finance.
• I have seen one million represented by mn and also by m (both lower case).
• The Authorized Share Capital of Company is $15,000,000 shares of $ 100 each i.e. $ 1,500,000,000.
• The MM abbreviation works whether the entry is in dollars, some other currency or millions of items or customers.
• Proofread your work thoroughly, focusing primarily on the use of abbreviations.

Should M be capitalized for million?

It should not be considered legal, tax, investment, or financial advice. You should consult with a licensed attorney, CPA or other professional to determine what may be best for your individual needs. 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, respectively, so I knew they meant $3 million and $12 million.

• If you do use these abbreviations, be sure to clearly define them in the text.
• If the company sells 26,000 units, the accountant can record that as 26M units.
• Led by editor-in-chief, Kimberly Zhang, our editorial staff works hard to make each piece of content is to the highest standards.
• B for billion isn’t Greek or Roman; it is just the first letter of the word billion.

Alternative notations to MM

It’s a concise https://www.fukuda-grp.co.jp/bookkeeping/retained-earnings-and-dividends-in-canadian/ way to denote large amounts without taking up a lot of space on the page or screen. In financial operations – where every zero in a number is crucial – abbreviating large figures helps reduce potential errors when handling complex calculations and transactions. In various aspects of finance such as budgeting, financial analysis, reporting, and forecasting, the use of MM aids in ensuring accuracy and precision.