3M Company (MMM)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 15,884,000 | 16,379,000 | 14,688,000 | 15,403,000 | 14,982,000 |
| Total current liabilities | US$ in thousands | 11,256,000 | 15,297,000 | 9,523,000 | 9,035,000 | 7,948,000 |
| Current ratio | 1.41 | 1.07 | 1.54 | 1.70 | 1.89 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $15,884,000K ÷ $11,256,000K
= 1.41
The current ratio of 3M Company has shown a decreasing trend over the past five years. As of December 31, 2020, the current ratio was 1.89, indicating that the company had $1.89 in current assets for every $1 in current liabilities. However, by December 31, 2024, the current ratio had decreased to 1.41.
A current ratio above 1 suggests that the company has more current assets than current liabilities, which is generally considered a positive indicator of liquidity. While the current ratio of 3M Company remained above 1 throughout the period, the decreasing trend raises some concerns about the company's ability to meet its short-term obligations.
It is important for investors and stakeholders to monitor the current ratio closely to assess the company's liquidity position and its ability to manage short-term financial obligations effectively. The decreasing trend in the current ratio of 3M Company highlights the need for further analysis and careful consideration of the company's financial health.
Peer comparison
Dec 31, 2024