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.