Rather than use the barred M, however, accounting went with MM as an abbreviation for a million. For example, 1MM equals 1 million, $34MM equals $34 million and so on. Moreover, MM is often employed in financial modeling and forecasting. Analysts use it to project future revenues, expenses, and other financial metrics. By using MM, they can create models that are not only easier to mm meaning 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.

Where Does the mm Abbreviation Come From?

If you can’t recording transactions go above three M’s in a row, you can’t get to 4,000, which would be MMMM. 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. “M” is the official abbreviation used whenever a million units of something are requested. Some argue that MM is redundant, since M on its own signifies 1000 in Roman numerals. Finance regulations like MiFID II have pushed to standardize on SI prefixes like k and M instead of MM.

Alternative notations to MM

• If you see “one quintillion,” you know that it’s a lot – and have spatial awareness of what it represents.
• It also helps professionals focus on key insights without getting lost in numerical details.
• Your use of the information on the website or materials linked from the Web is at your own risk.
• Furthermore, using MM can make a large-scale monetary value easier to quickly grasp, both visually and conceptually, as it simplifies the financial quantities being discussed or presented.
• We still use Roman numerals for some accounting methods, while large figures are designated by the Greek alphabetic equivalent of the specific term.
• In finance and accounting, MM (or lowercase “mm”) denotes that the units of figures presented are in millions.

The use of “MM” became more entrenched as these standards aimed to harmonize financial reporting across different jurisdictions, ensuring consistency and comparability. 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.

Financial Planning and Analysis (FP&A)

Rather than writing $400,000,000 or $400 million, the accountant can use the MM abbreviation and write $400MM instead. You have to be careful when using it or interpreting it because MM can stand for other things too. “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”). The use of MM to represent a million originated from the Roman numeral system, where “M” stands for thousand.

What does MM stand for in finance?

But in the case of Asset 2, the company can get a loan of 4.5 MM against the applied loan of 5 MM as per the bank’s criteria. The company can get the full amount of the loan applied against Asset 1 as the bank’s requirements are fulfilled. Our goal is to create English lessons that are Bookstime easy to understand for everyone.

• The use of “MM” fit seamlessly into this new framework, offering a concise way to represent substantial amounts without cluttering financial records.
• 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.
• “mm” (which is usually kept in the lower case) is an old-fashioned abbreviation that doesn’t see much common usage.
• 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.
• For example, tech companies might summarize billion-dollar valuations using MM for brevity.

Once you get above that amount, you’d say billion or trillion instead of using the numbers. This methodology differs from everyday slang, which takes the first letter from each word as the primary abbreviation. While you can make MM stand for millions of anything, it’s important that the reader knows whether you’re talking about dollars, euros, units shipped, etc. 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. A millimeter (abbreviated as mm and sometimes spelled as millimetre) is a small unit of displacement (length/distance) in the metric system. Million is generally abbreviated with a capital M as in Megabyte or just “mn”.