Why do bankers use M instead of K? TheStory Behind the MM Convention

” This abbreviation works for both spoken and written dialogue, and is easily recognizable.

Contextual Usage of “M” and “MM”

This guide will explore how the notation should be used, as well as alternative symbols that are used in practice. In internet record keeping, for instance, CPM is the cost per thousand impressions of an internet ad. 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. For the past 52 years, Harold Averkamp (CPA, MBA) has worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online.

Conclusion: An Enduring Convention

You might not put a lot of thought into your abbreviations, and that’s okay. However, there are official abbreviations out there that you might come across, and it would help to know about them. We’ll explain the correct abbreviation for “million” in this article. I generally use $___MM, which was, and still is, often used by accountants and economists.

Concluding Thoughts on Abbreviating Million

As can be expected, trillions is therefore shorthanded by the letter T. Rather than writing $1,000,000, one can simply write $1M for one million dollars. This kind of abbreviation is particularly useful for Legal E-Billing more complicated numbers that contain decimals.

• The MM abbreviation works whether the entry is in dollars, some other currency or millions of items or customers.
• The Roman numerals MM are frequently used to designate that the units used in presenting information (financial and non-financial) are in millions.
• Similarly, if a company reports an acquisition cost of €500MM, it indicates an acquisition worth €500 million.
• However, it’s always crucial to adhere to the specific guidelines of the academic institution, journal, or discipline you’re working within.
• For example, an annual salary of $60,000 might appear as $60k instead of $60M.

The MM abbreviation works whether the entry is in dollars, some other currency or millions of items or customers. The use of two m’s to denote millions is becoming less common. Frequently, in finance and accounting, an analyst will use k to denote thousands and a capitalized M to denote millions. In academic, journalistic, or business writing, adhering to style guides and conventions is crucial.

• By effectively utilizing abbreviations like “M” and “MM,” you can convey numerical information quickly, concisely, and accurately.
• In this era, M already signified 1,000, while MM denoted 1 million.
• Stack Exchange network consists of 183 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.
• MM enabled fitting large monetary values concisely into tables and ledgers.
• The word “million” is not a commonly abbreviated word, but its abbreviations still have their place.
• Boost your confidence and master accounting skills effortlessly with CFI’s expert-led courses!
• Explore Our Course LibraryEnhance your leadership skills with our diverse selection of courses.

In this context, “MM” serves as an abbreviation for “thousand thousands,” signifying a million. Although less common than “M,” “MM” is extensively used in certain industries, particularly in investment banking and specific regions such as Europe and parts of Asia. Financial and accounting statements historically used a different approach to abbreviating thousand and million. It has become less common due to the potential for confusion.

In this example, we intentionally chose a piece of analysis that contained various different units, such as dollars and shares. When an analyst must present various different types of units, it is recommended to add a “units” column so that each item contains a label for easy mm meaning reference. The Roman numerals MM are 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.

If you think there’s any possibility of your use of MM being confusing or being misinterpreted, you’re safer writing out the numbers or using “millions.” The barred M was necessary because the Romans didn’t use zero, and they didn’t like using more than three identical letters in a row. If you can’t go above three M’s in a row, you can’t normal balance get to 4,000, which would be MMMM. Internet advertisers are familiar with CPM which is the cost per thousand impressions.