3M Company (MMM)

Debt-to-equity 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-equity ratio		2.90	2.72	0.95	1.07	1.40

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $11,125,000K ÷ $3,842,000K
= 2.90

The debt-to-equity ratio of 3M Company has fluctuated over the past five years. As of December 31, 2020, the ratio stood at 1.40, indicating that the company had $1.40 in debt for every dollar of equity.

By December 31, 2021, the ratio improved to 1.07, suggesting a reduction in the level of debt relative to equity. This positive trend continued into December 31, 2022, when the ratio further decreased to 0.95, indicating a stronger equity position in relation to debt.

However, there was a significant spike in the debt-to-equity ratio by December 31, 2023, reaching a high of 2.72. This substantial increase may raise concerns about the company's debt levels surpassing its equity, potentially indicating a higher financial risk.

Furthermore, as of December 31, 2024, the ratio increased further to 2.90, signaling a continued rise in debt relative to equity. This trend suggests a potential strain on the company's financial health and may warrant further investigation into its debt management strategies and overall financial stability.