3M Company (MMM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.26 | 0.26 | 0.27 | 0.28 | 0.30 | 0.30 | 0.31 | 0.32 | 0.34 | 0.34 | 0.34 | 0.36 | 0.38 | 0.41 | 0.43 | 0.42 | 0.39 | 0.41 | 0.38 | 0.40 |
| Debt-to-capital ratio | 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 | 0.64 | 0.62 | 0.60 | 0.62 |
| 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 |
| 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 |
The solvency ratios of 3M Co. provide insights into the company's ability to meet its long-term financial obligations.
The debt-to-assets ratio has remained relatively stable around 0.32 to 0.34 over the past year, indicating that roughly 32% to 34% of the company's assets are financed by debt.
The debt-to-capital ratio has shown some fluctuations, ranging from 0.51 to 0.77. This ratio demonstrates the proportion of the company's capital that is funded by debt, with values above 0.5 indicating a significant reliance on debt financing.
The debt-to-equity ratio has fluctuated more noticeably, with values ranging from 1.04 to 3.43. This ratio reflects the company's leverage and financial risk, showing how many times the company's equity could cover its total debt. Higher values suggest higher financial risk and dependence on debt financing.
The financial leverage ratio has also shown variation, ranging from 3.06 to 10.62. This ratio measures the extent to which the company relies on debt to finance its operations. Higher values indicate higher financial leverage and risk.
Overall, the trends in these solvency ratios suggest that 3M Co. has maintained a moderate level of debt relative to its assets, capital, and equity, with fluctuations indicating potential changes in the company's financial structure and risk profile over the observed periods. Additional analysis and comparison with industry benchmarks would provide further insights into the company's solvency and financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -9.28 | -13.71 | -5.36 | 13.66 | 14.83 | 16.81 | 11.46 | 15.64 | 15.77 | 15.38 | 15.20 | 14.25 | 13.80 | 13.22 | 13.97 | 14.24 | 13.69 | 15.81 | 16.72 | 20.12 |
The interest coverage ratio for 3M Co. has been fluctuating over the past eight quarters. The company experienced negative interest coverage in three quarters (Q4 2023, Q3 2023, and Q2 2023), indicating that 3M Co. did not generate enough operating income to cover its interest expenses during those periods. This may raise concerns about the company's ability to service its debt obligations with its current level of earnings.
On a positive note, there were five quarters (Q1 2023, Q4 2022, Q3 2022, Q2 2022, and Q1 2022) where 3M Co. had positive interest coverage ratios. This suggests that the company was able to comfortably cover its interest expenses with its operating income during those periods.
Overall, the trend in the interest coverage ratio for 3M Co. shows some volatility and inconsistency, indicating a potential need for the company to focus on improving its profitability or managing its debt levels to ensure sustainable coverage of its interest obligations.