MM (Million)

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MM (Million) Definition

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. Large enterprises often present their financial statements and other reports with the figures in the millions, i.e., and they use ($ MM).

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Explanation

MM (Million)

MM is the abbreviation used to represent the figures in millions. Many financial institutions, banks, and large companies use the abbreviation MM to represent the figures in millions. They found it quite easy as it reduces the complexity of representing the whole numbers. Traditionally M was used as thousands in roman numbers so MM is 1,000 * 1,000 = 1,000,000 which is 1 million. MM is widely used in the gas and oil industry in the US. M is the Latin word mile abbreviation, which means one thousand. Small mm denotes the millimeters, and MM denotes the Millions.  Sometimes M, which denotes a thousand, and MM, which denotes Millions, create confusion in people's minds. Now the representation of thousand changed from M to K.

Examples of MM (Million)

Below are some examples to understand the concept in a better way –

Example #1

Company A has issued the $ 10,000,000 shares of $ 100 each. At the end of the year, the earnings per share were $ 10. The Authorized Share Capital of Company is $15,000,000 shares of $ 100 each i.e. $ 1,500,000,000. Out of which, it issued $ 100,000,000 worth of shares only. Suggest to the company how to represent the same.

Solution

  • Authorized Capital   $ 15,000,000 shares of $ 100 each i.e. $ 1,500,000,000
  •  Issued Capital $ 10,000,000 shares of $ 100 each i.e. $ 1,000,000,000
  • EPS is $ 10/ Share

Presentation is as under -

MM Million Example 1

Example #2

The Report containing certain information of company C is given below, representing the same with the compact number representing mode.

MM Million Example 2

Determine whether the company can get both the loans applied? Present it with explanations and represent the tabular form with the $ in millions.

Solution

Example 2.1

The company can get the full amount of the loan applied against Asset 1 as the bank's requirements are fulfilled.

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.

Alternative Notations for MM (Million)

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.

Million Conversion Table

A million conversions are explained in the following table:

Convert the Figures of the Following Table into Millions and represent the same again.

MM Million Conversion

The Conversion of the Above Table in Millions is as under ($ in Millions – MM)

MM Million Conversion 1

Importance and Use

Some of the importance is as follows -

  1. Large organizations use millions to represent their reports.
  2. Presentation in millions makes the reading easy.
  3. The reader can easily understand the complex number shown in millions through presentations.
  4. Some of the Official Reports made it compulsory to represent millions.
  5. Presentation in Millions improves the reading and makes the complex simple.
  6. A million is commonly used to describe a large amount. For example, millions of people got affected due to a downfall in the economy.
  7. By Presenting in Millions, the Chances of errors got reduced compared to presenting by whole numbers.

Conclusion

MM is the abbreviation used for presenting in millions. The history is M represents the number one thousand dollars in roman numbers, and M represents thousands, so MM is used to represent millions as MM is 1000*1000, which becomes 1 Million. Whereas Billion is 1000 * 1 Million, the extremely large organization represents and maintains their data in Billions, whereas the large organizations represent their data in Millions. But as M and MM created confusion, people started using alternatives. Now to present in thousands, the word K is used, and for presentation in Million, the word M is used, and for presentation in Billions, the abbreviation Bn is used.