Stock Analysis on Net

3M Co. (NYSE:MMM)

This company has been moved to the archive! The financial data has not been updated since October 25, 2022.

Analysis of Debt 

Microsoft Excel

Total Debt (Carrying Amount)

3M Co., balance sheet: debt

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Short-term borrowings and current portion of long-term debt 1,307 806 2,795 1,211 1,853
Current obligations of finance leases 7 22 21 17 13
Long-term debt, excluding current portion 16,056 17,989 17,518 13,411 12,096
Finance leases, net of current obligations 93 93 111 75 60
Total debt and finance lease liabilities (carrying amount) 17,463 18,910 20,445 14,714 14,022

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).


Short-term borrowings and current portion of long-term debt
The short-term borrowings displayed a fluctuating trend over the analyzed period. Beginning at 1,853 million USD in 2017, the value decreased to 1,211 million USD in 2018, followed by a sharp increase to 2,795 million USD in 2019. Subsequently, it declined significantly to 806 million USD in 2020 and then rose again to 1,307 million USD in 2021. This variability indicates a lack of consistent short-term debt management or situational financing needs across the years.
Current obligations of finance leases
This category showed a gradual increase from 13 million USD in 2017 to 22 million USD in 2020, before decreasing to 7 million USD in 2021. The general trend was upward until 2020, suggesting an increasing reliance on lease financing, but the sharp decline in 2021 may reflect changes in lease structuring or repayments.
Long-term debt, excluding current portion
Long-term debt steadily increased from 12,096 million USD in 2017 to a peak of 17,989 million USD in 2020. This was followed by a decline to 16,056 million USD in 2021. The upward trajectory from 2017 to 2020 reflects an accumulation of long-term liabilities, potentially to finance expansion or capital investments, while the decrease in 2021 could indicate repayments or refinancing activities.
Finance leases, net of current obligations
Finance leases excluding current obligations rose from 60 million USD in 2017 to 111 million USD in 2019, then declined to 93 million USD in 2020 and remained stable at that level in 2021. This pattern aligns with lease asset capitalization trends and suggests moderate variability with a peak in 2019.
Total debt and finance lease liabilities (carrying amount)
The total carrying amount of debt and finance lease liabilities increased from 14,022 million USD in 2017 to a high of 20,445 million USD in 2019. Thereafter, it declined to 18,910 million USD in 2020 and further to 17,463 million USD in 2021. The peak in 2019 indicates the maximum debt level during the period, with a subsequent deleveraging or repayment phase beginning in 2020.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2021
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 1,307
Long-term debt, excluding current portion 17,601
Finance lease liabilities 100
Total debt and finance lease liabilities (fair value) 19,008
Financial Ratio
Debt, fair value to carrying amount ratio 1.09

Based on: 10-K (reporting date: 2021-12-31).


Weighted-average Interest Rate on Debt

Weighted-average effective interest rate on debt and finance lease liabilities: 2.70%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
2.80% 16,053 449
1.43% 1,294 19
4.10% 16 1
3.30% 100 3
Total 17,463 472
2.70%

Based on: 10-K (reporting date: 2021-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 472 ÷ 17,463 = 2.70%