3M Company (MMM)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	13,088,000	14,001,000	16,056,000	17,989,000	17,518,000
Total assets	US$ in thousands	50,580,000	46,455,000	47,072,000	47,344,000	44,659,000
Debt-to-assets ratio		0.26	0.30	0.34	0.38	0.39

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $13,088,000K ÷ $50,580,000K
= 0.26

The debt-to-assets ratio for 3M Co. has shown a decreasing trend over the past five years, indicating a positive development in the company's leverage position. As of December 31, 2023, the ratio stands at 0.32, which is lower than the ratios of the previous four years. This suggests that 3M Co. has been successful in reducing its reliance on debt to finance its assets relative to its total asset base.

The declining trend in the debt-to-assets ratio may imply that the company has been efficiently managing its debt levels or growing its asset base more rapidly than its debt. A lower ratio indicates that a smaller portion of 3M Co.'s assets are funded by debt, which can be viewed positively by investors and creditors as it reflects lower financial risk and potentially higher financial stability.

Overall, the decreasing debt-to-assets ratio trend for 3M Co. signals a healthier financial position and a more conservative approach towards debt management, which could enhance the company's long-term sustainability and resilience to economic challenges.