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
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


See also:

3M Company Debt to Assets (Quarterly Data)