3M Company (MMM)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	11,125,000	11,319,000	11,781,000	20,593,000	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
Total stockholders’ equity	US$ in thousands	3,842,000	4,642,000	3,916,000	4,866,000	4,807,000	4,672,000	7,798,000	15,298,000	14,722,000	14,080,000	13,742,000	14,930,000	15,046,000	14,460,000	14,448,000	13,760,000	12,867,000	11,880,000	10,857,000	10,147,000
Debt-to-capital ratio		0.74	0.71	0.75	0.81	0.73	0.73	0.62	0.46	0.49	0.50	0.50	0.50	0.52	0.53	0.53	0.55	0.58	0.61	0.64	0.65

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 exhibited a declining trend from 0.65 in March 2020 to 0.74 in December 2024. This ratio indicates the proportion of the company's total debt relative to its total capital, reflecting the extent to which debt finances the company's operations compared to equity. The decreasing trend over the period signifies a reduction in the reliance on debt financing, which can be seen as a positive indicator of financial stability and risk management. However, the slight increase in the ratio in the most recent quarters of March 2024 and June 2024 warrants attention, as it suggests a potential uptick in debt relative to capital. Overall, monitoring this ratio is important for understanding the company's capital structure and financial leverage.