Current Ratio
since 2005
Calculation
3M Co., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 1.70 | = | 15,403) | ÷ | 9,035) |
| Dec 31, 2020 | 1.89 | = | 14,982) | ÷ | 7,948) |
| Dec 31, 2019 | 1.41 | = | 12,971) | ÷ | 9,222) |
| Dec 31, 2018 | 1.89 | = | 13,709) | ÷ | 7,244) |
| Dec 31, 2017 | 1.86 | = | 14,277) | ÷ | 7,687) |
| Dec 31, 2016 | 1.89 | = | 11,726) | ÷ | 6,219) |
| Dec 31, 2015 | 1.54 | = | 10,986) | ÷ | 7,118) |
| Dec 31, 2014 | 1.96 | = | 11,765) | ÷ | 5,998) |
| Dec 31, 2013 | 1.70 | = | 12,733) | ÷ | 7,498) |
| Dec 31, 2012 | 2.20 | = | 13,630) | ÷ | 6,200) |
| Dec 31, 2011 | 2.25 | = | 12,240) | ÷ | 5,441) |
| Dec 31, 2010 | 2.01 | = | 12,215) | ÷ | 6,089) |
| Dec 31, 2009 | 2.20 | = | 10,795) | ÷ | 4,897) |
| Dec 31, 2008 | 1.64 | = | 9,598) | ÷ | 5,839) |
| Dec 31, 2007 | 1.83 | = | 9,838) | ÷ | 5,362) |
| Dec 31, 2006 | 1.22 | = | 8,946) | ÷ | 7,323) |
| Dec 31, 2005 | 1.36 | = | 7,115) | ÷ | 5,238) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The analysis of short-term liquidity from 2005 to 2021 reveals a consistent ability to cover current obligations, with the current ratio remaining above 1.0 throughout the entire period. While the absolute values of both current assets and current liabilities have increased over the long term, the relationship between them has fluctuated, indicating periodic shifts in working capital management.
- Current Assets Trend
- A general upward trajectory is observed in current assets, which grew from 7,115 million USD in 2005 to 15,403 million USD by 2021. Significant growth was noted between 2005 and 2012, followed by a period of relative stability and a subsequent increase starting in 2016, peaking at the end of the analyzed period.
- Current Liabilities Trend
- Current liabilities exhibited greater volatility than assets. Starting at 5,238 million USD in 2005, liabilities peaked at 9,222 million USD in 2019. Notable fluctuations occurred between 2006 and 2007, where liabilities decreased sharply, and again in 2013 and 2019, where spikes in short-term obligations were evident.
- Current Ratio Analysis
- The current ratio fluctuated within a range of 1.22 to 2.25. A period of strengthened liquidity occurred between 2009 and 2012, with the ratio exceeding 2.0, peaking at 2.25 in 2011. Subsequent years showed a normalization of the ratio, generally oscillating between 1.50 and 1.90. A significant temporary decline to 1.41 was recorded in 2019, primarily driven by a peak in current liabilities, before recovering to 1.89 in 2020 and settling at 1.70 in 2021.
The overall liquidity profile suggests a conservative financial approach, as the current ratio has remained well above the critical threshold of 1.0. The periodic dips in the ratio typically align with increases in short-term liabilities rather than a depletion of current assets, suggesting strategic timing in the management of short-term debt or operational payables.
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Comparison to Competitors
3M Co., current ratio, long-term trends, comparison to competitors
| 3M Co. | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 1.70 | 1.33 | 1.46 | 1.04 | 1.28 | 1.30 | 1.42 | 1.19 |
| Dec 31, 2020 | 1.89 | 1.39 | 1.53 | 1.56 | 1.58 | 1.47 | 1.39 | 1.21 |
| Dec 31, 2019 | 1.41 | 1.05 | 1.47 | 1.70 | 1.16 | 1.34 | 1.22 | 1.08 |
| Dec 31, 2018 | 1.89 | 1.08 | 1.37 | 1.47 | — | 1.29 | 1.12 | 1.13 |
| Dec 31, 2017 | 1.86 | 1.16 | 1.35 | 1.64 | — | 1.38 | 1.38 | 1.35 |
| Dec 31, 2016 | 1.89 | 1.25 | 1.22 | 1.27 | — | 1.41 | 1.20 | 1.30 |
| Dec 31, 2015 | 1.54 | 1.35 | 1.31 | 1.43 | — | 1.09 | 1.15 | 1.18 |
| Dec 31, 2014 | 1.96 | 1.20 | 1.39 | 1.51 | — | 1.50 | 1.11 | 1.30 |
| Dec 31, 2013 | 1.70 | 1.26 | 1.40 | 1.78 | — | 1.49 | 1.20 | 1.29 |
| Dec 31, 2012 | 2.20 | 1.27 | 1.43 | 1.44 | — | 1.35 | 1.14 | 1.24 |
| Dec 31, 2011 | 2.25 | 1.21 | 1.33 | 1.60 | — | 1.31 | 1.16 | 1.38 |
| Dec 31, 2010 | 2.01 | 1.15 | 1.44 | 1.70 | — | 1.28 | 1.15 | 1.33 |
| Dec 31, 2009 | 2.20 | 1.07 | 1.39 | 1.68 | — | 1.25 | 1.17 | 1.29 |
| Dec 31, 2008 | 1.64 | 0.84 | 1.21 | 1.28 | — | 1.08 | 1.01 | 1.24 |
| Dec 31, 2007 | 1.83 | 0.86 | 1.15 | 1.30 | — | 1.15 | 1.11 | 1.26 |
| Dec 31, 2006 | 1.22 | 0.77 | 1.20 | 1.29 | — | 1.21 | 1.06 | 1.24 |
| Dec 31, 2005 | 1.36 | 0.78 | 1.19 | 1.21 | — | 1.15 | 1.12 | 1.12 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
3M Co., current ratio, long-term trends, comparison to sector (capital goods)
| 3M Co. | Capital Goods | |
|---|---|---|
| Dec 31, 2021 | 1.70 | 1.31 |
| Dec 31, 2020 | 1.89 | 1.43 |
| Dec 31, 2019 | 1.41 | 1.17 |
| Dec 31, 2018 | 1.89 | 1.17 |
| Dec 31, 2017 | 1.86 | 1.29 |
| Dec 31, 2016 | 1.89 | 1.27 |
| Dec 31, 2015 | 1.54 | 1.26 |
| Dec 31, 2014 | 1.96 | 1.29 |
| Dec 31, 2013 | 1.70 | 1.34 |
| Dec 31, 2012 | 2.20 | 1.31 |
| Dec 31, 2011 | 2.25 | 1.29 |
| Dec 31, 2010 | 2.01 | 1.28 |
| Dec 31, 2009 | 2.20 | 1.23 |
| Dec 31, 2008 | 1.64 | 1.07 |
| Dec 31, 2007 | 1.83 | 1.08 |
| Dec 31, 2006 | 1.22 | 1.05 |
| Dec 31, 2005 | 1.36 | 1.03 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
3M Co., current ratio, long-term trends, comparison to industry (industrials)
| 3M Co. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 1.70 | 1.29 |
| Dec 31, 2020 | 1.89 | 1.41 |
| Dec 31, 2019 | 1.41 | 1.16 |
| Dec 31, 2018 | 1.89 | 1.13 |
| Dec 31, 2017 | 1.86 | 1.24 |
| Dec 31, 2016 | 1.89 | 1.22 |
| Dec 31, 2015 | 1.54 | 1.24 |
| Dec 31, 2014 | 1.96 | 1.26 |
| Dec 31, 2013 | 1.70 | 1.33 |
| Dec 31, 2012 | 2.20 | 1.30 |
| Dec 31, 2011 | 2.25 | 1.30 |
| Dec 31, 2010 | 2.01 | 1.28 |
| Dec 31, 2009 | 2.20 | 1.23 |
| Dec 31, 2008 | 1.64 | 1.06 |
| Dec 31, 2007 | 1.83 | 1.07 |
| Dec 31, 2006 | 1.22 | 1.05 |
| Dec 31, 2005 | 1.36 | 1.05 |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).