3M Company (MMM)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 44,659,000 | 42,550,000 | 38,969,000 | 39,140,000 |
| 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 |
| Financial leverage ratio | 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 | 4.44 | 3.98 | 3.86 | 4.03 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $50,580,000K ÷ $4,807,000K
= 10.52
The financial leverage ratio of 3M Co. has shown fluctuations over the past eight quarters. In Q4 2023, the ratio was 10.52, which decreased slightly from 10.62 in Q3 2023. However, this ratio remains higher compared to the previous quarters, signaling a higher level of financial leverage.
The ratio peaked at 10.62 in Q3 2023, indicating a significant increase from 3.16 in Q4 2022. This sudden surge in financial leverage could possibly be attributed to increased debt levels or a decrease in equity.
In the earlier quarters of 2023, the financial leverage ratio was relatively lower, with Q1 2023 at 3.06 and Q2 2023 at 6.27. This suggests that the company had a lower reliance on debt to finance its operations during those periods.
Overall, the trend in the financial leverage ratio for 3M Co. indicates fluctuations in the company's capital structure, with periods of higher and lower leverage levels. Further analysis of the company's financial statements and debt management strategies may provide insights into the drivers behind these fluctuations and their implications for the company's financial health.
Peer comparison
Dec 31, 2023