3M Company (MMM)
Cash ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 5,600,000 | 6,050,000 | 10,083,000 | 10,911,000 | 5,933,000 | 5,140,000 | 4,258,000 | 3,824,000 | 3,655,000 | 3,404,000 | 2,722,000 | 3,247,000 | 4,564,000 | 4,878,000 | 4,695,000 | 4,636,000 | 4,634,000 | 4,121,000 | 4,219,000 | 4,253,000 |
| Short-term investments | US$ in thousands | 2,128,000 | 1,245,000 | 255,000 | 60,000 | 53,000 | 73,000 | 56,000 | 145,000 | 238,000 | 185,000 | 262,000 | 112,000 | 201,000 | 855,000 | 805,000 | 501,000 | 404,000 | 440,000 | 247,000 | 224,000 |
| Total current liabilities | US$ in thousands | 11,256,000 | 11,391,000 | 14,345,000 | 13,156,000 | 15,297,000 | 15,466,000 | 10,936,000 | 10,556,000 | 9,523,000 | 9,543,000 | 9,896,000 | 9,152,000 | 9,035,000 | 9,635,000 | 9,440,000 | 8,363,000 | 7,948,000 | 7,410,000 | 7,282,000 | 9,134,000 |
| Cash ratio | 0.69 | 0.64 | 0.72 | 0.83 | 0.39 | 0.34 | 0.39 | 0.38 | 0.41 | 0.38 | 0.30 | 0.37 | 0.53 | 0.60 | 0.58 | 0.61 | 0.63 | 0.62 | 0.61 | 0.49 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,600,000K
+ $2,128,000K)
÷ $11,256,000K
= 0.69
The cash ratio of 3M Company has fluctuated over the past few years, ranging from a low of 0.30 on June 30, 2022, to a high of 0.83 on March 31, 2024. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
3M's cash ratio peaked at 0.83 on March 31, 2024, which may suggest that the company had a significant amount of cash on hand relative to its current liabilities at that time. Conversely, the lowest cash ratio of 0.30 on June 30, 2022, indicates a lower level of cash reserves in proportion to short-term obligations. Overall, the trend in 3M's cash ratio shows some volatility but tends to hover around the range of 0.30 to 0.83.
It is essential for investors and analysts to monitor the cash ratio to assess 3M Company's liquidity position and its ability to meet short-term financial obligations. A consistent and healthy cash ratio can indicate financial stability and prudent cash management practices.
Peer comparison
Dec 31, 2024