3M Company (MMM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 39,868,000 | 40,875,000 | 43,377,000 | 55,243,000 | 50,580,000 | 49,621,000 | 48,880,000 | 46,886,000 | 46,455,000 | 46,176,000 | 45,634,000 | 45,855,000 | 47,072,000 | 48,278,000 | 48,307,000 | 47,180,000 | 47,344,000 | 45,390,000 | 45,079,000 | 46,212,000 |
| 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 |
| Financial leverage ratio | 10.38 | 8.81 | 11.08 | 11.35 | 10.52 | 10.62 | 6.27 | 3.06 | 3.16 | 3.28 | 3.32 | 3.07 | 3.13 | 3.34 | 3.34 | 3.43 | 3.68 | 3.82 | 4.15 | 4.55 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $39,868,000K ÷ $3,842,000K
= 10.38
The financial leverage ratio of 3M Company has shown fluctuations over the past few years. As of December 31, 2024, the financial leverage ratio stands at 10.38, indicating that the company's debt levels are significant compared to its equity. This suggests that 3M has been relying heavily on borrowed funds to finance its operations and investments.
It is important to note the significant increase in the financial leverage ratio from March 31, 2024 (3.06) to June 30, 2024 (6.27), reaching a peak of 11.35 by March 31, 2024. This rapid increase may raise concerns about the company's ability to service its debt obligations and manage financial risk effectively.
Overall, the trend in 3M Company's financial leverage ratio suggests that the company has been increasing its leverage over time, potentially exposing it to higher financial risks. Investors and stakeholders should closely monitor the company's debt levels and leverage ratios to assess its financial health and sustainability in the long term.
Peer comparison
Dec 31, 2024