MM (Million) Definition
MM is the symbol used for representing the numbers in millions where 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, they use ($ MM).
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, and 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 abbreviation of the Latin word mile, which means one thousand. Small mm denotes the millimeters, and MM denotes the Millions. Sometimes M, which denotes for thousand and MM, which denotes for Millions, creates confusion in the minds of people. 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 –
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 shares only. Suggest the company about how to represent the same.
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- 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 –
The Report containing certain information of company C is given below, represent the same with the compact number representing mode.
Determine whether the company can get both the loan applied? Present it with explanations and represent the in tabular form with the $ in millions.
The company can get the full amount of loan applied against Asset 1 as the requirements of the bank 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 criteria of the bank.
Alternative Notations for MM (Million)
The Notation MM for representing Millions is becoming less common as it is creating the 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 Thousand and Million. 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 with the following table:
Convert the Figures of the Following Table into Millions and represent the same again.
The Conversion of the Above Table in Millions is as under ($ in Millions – MM)
Importance and Use
Some of the importance is as follows –
- Millions are used by a large organization in representing their reports.
- Presentation in millions makes the reading easy.
- Through presentations in millions, the reader can understand the complex number easily as they are shown in millions.
- Some of the Official Reports made it compulsory to represent in millions.
- Presentation in Millions improves the reading and makes the complex simple.
- Million is commonly used to describe a large amount. For example, millions of people got affected due to a downfall in the economy.
- By Presenting in Millions, the Chances of errors got reduced as compared to presenting by in whole numbers.
MM is the abbreviation which used for presenting in millions. The history is M represents the number one thousand dollars in roman numbers, and M is used to representing in thousands, so MM is used as representing in millions as MM is 1000*1000, which becomes 1 Million. Whereas Billion is 1000 * 1 Million so 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 create confusion, so the 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, abbreviation Bn is used.
This has been a guide to MM (Million) and its meaning. Here we discuss, examples and alternative notations of MM (Million) along with the conversion table. You may learn more financing from the following articles –