3M Company (MMM)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 3,842,000 | 4,807,000 | 14,722,000 | 15,046,000 | 12,867,000 |
| Debt-to-capital ratio | 0.74 | 0.73 | 0.49 | 0.52 | 0.58 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $11,125,000K ÷ ($11,125,000K + $3,842,000K)
= 0.74
The debt-to-capital ratio of 3M Company has shown a slight decreasing trend from 0.58 in December 31, 2020, to 0.52 in December 31, 2021, and further to 0.49 in December 31, 2022. This indicates that the company has been reducing its reliance on debt financing in relation to its total capital. However, there was a noticeable increase in the ratio to 0.73 by December 31, 2023, and a subsequent rise to 0.74 as of December 31, 2024. These increases suggest that 3M Company's debt levels relative to its capital have risen in the latter years, which may signal a shift towards more debt financing or a decrease in capital. It would be important to further investigate the reasons behind these changes to assess the company's financial health and risk profile accurately.
Peer comparison
Dec 31, 2024