3M Company (MMM)
Debt-to-assets ratio
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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
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Long-term debt | US$ in thousands | 13,088,000 | 12,876,000 | 12,954,000 | 12,948,000 | 14,001,000 | 13,849,000 | 14,019,000 | 14,801,000 | 16,056,000 | 16,193,000 | 16,267,000 | 16,819,000 | 17,989,000 | 18,429,000 | 19,276,000 | 19,247,000 | 17,518,000 | 17,479,000 | 14,914,000 | 15,580,000 |
Total assets | US$ in thousands | 50,580,000 | 49,621,000 | 48,880,000 | 46,886,000 | 46,455,000 | 46,176,000 | 45,634,000 | 45,855,000 | 47,072,000 | 48,278,000 | 48,307,000 | 47,180,000 | 47,344,000 | 45,390,000 | 45,079,000 | 46,212,000 | 44,659,000 | 42,550,000 | 38,969,000 | 39,140,000 |
Debt-to-assets ratio | 0.26 | 0.26 | 0.27 | 0.28 | 0.30 | 0.30 | 0.31 | 0.32 | 0.34 | 0.34 | 0.34 | 0.36 | 0.38 | 0.41 | 0.43 | 0.42 | 0.39 | 0.41 | 0.38 | 0.40 |
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 of 3M Co. has shown relatively stable levels over the past eight quarters, fluctuating between 0.32 and 0.36. This ratio signifies that, on average, approximately 32% to 36% of the company's assets are funded by debt while the rest is financed through equity.
A decreasing trend in the debt-to-assets ratio can signal that the company is becoming less reliant on debt to finance its operations, which may be seen as a positive indicator of financial health and sustainability. Conversely, an increasing trend in this ratio could indicate that the company is taking on more debt to fund its operations or expansion, which may pose higher financial risk.
Overall, a debt-to-assets ratio of around 0.32 to 0.36 indicates that 3M Co. has a moderate level of debt relative to its asset base. It is important for investors and stakeholders to monitor this ratio over time to assess changes in the company's capital structure and financial risk profile.
Peer comparison
Dec 31, 2023