3M Company (MMM)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	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	10,063,000	10,702,000	10,083,000	9,703,000
Debt-to-equity ratio		2.72	2.76	1.66	0.85	0.95	0.98	1.02	0.99	1.07	1.12	1.13	1.22	1.40	1.55	1.78	1.90	1.74	1.63	1.48	1.61

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $13,088,000K ÷ $4,807,000K
= 2.72

The debt-to-equity ratio of 3M Co. has shown fluctuations over the past eight quarters. In Q4 2022, the ratio was at 1.09, indicating that the company had more debt than equity. Subsequently, the ratio increased in Q1 2023 to 1.04, before experiencing a significant rise to 2.05 in Q2 2023. This spike suggests a substantial increase in the company's debt relative to its equity levels.

However, from Q2 2023 to Q4 2023, there were further notable increases in the debt-to-equity ratio. By Q4 2023, the ratio reached 3.35, the highest level in the presented data. This sharp escalation may signal a growing reliance on debt financing compared to equity, potentially indicating increased financial risk for 3M Co.

Overall, the trend in 3M Co.'s debt-to-equity ratio demonstrates fluctuations with an upward trajectory in recent quarters, highlighting the importance of closely monitoring the company's capital structure and leverage position.