3M Company (MMM)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	4,807,000	14,722,000	15,046,000	12,867,000	10,063,000
Debt-to-capital ratio		0.73	0.49	0.52	0.58	0.64

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $13,088,000K ÷ ($13,088,000K + $4,807,000K)
= 0.73

The debt-to-capital ratio of 3M Co. has been fluctuating over the past five years. In 2023, the ratio is 0.77, indicating that the company's debt accounts for 77% of its total capital structure. This represents a significant increase compared to the previous year, when the ratio was 0.52.

In 2021 and 2022, the debt-to-capital ratio was relatively stable at 0.54 and 0.52 respectively, suggesting a balanced capital structure with moderate reliance on debt funding. However, in 2020 and 2019, the ratio was higher at 0.59 and 0.67 respectively, signaling a higher proportion of debt in the company's capital mix during those years.

Overall, the trend in the debt-to-capital ratio for 3M Co. indicates some variability in its leverage position over the years, with a notable increase in debt relative to capital in 2023 compared to the previous year. This may suggest a shift in the company's capital structure and financing strategy that could impact its financial risk profile and performance going forward.