3M Company (MMM)

Debt-to-assets ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	11,125,000	13,088,000	14,001,000	16,056,000	17,989,000
Total assets	US$ in thousands	39,868,000	50,580,000	46,455,000	47,072,000	47,344,000
Debt-to-assets ratio		0.28	0.26	0.30	0.34	0.38

December 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $11,125,000K ÷ $39,868,000K
= 0.28

The debt-to-assets ratio for 3M Company has been showing a declining trend over the past five years, decreasing from 0.38 as of December 31, 2020, to 0.28 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt in relation to its total assets over the period under consideration. A lower debt-to-assets ratio implies a stronger financial position, as it suggests less financial risk and a higher proportion of assets being financed by equity. This downward trend may indicate better financial management and risk mitigation strategies implemented by 3M Company in recent years.