Debt to Equity
since 2005
Calculation
3M Co., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total 3M Company shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2021 | 1.15 | = | 17,363) | ÷ | 15,046) |
| Dec 31, 2020 | 1.46 | = | 18,795) | ÷ | 12,867) |
| Dec 31, 2019 | 2.02 | = | 20,313) | ÷ | 10,063) |
| Dec 31, 2018 | 1.49 | = | 14,622) | ÷ | 9,796) |
| Dec 31, 2017 | 1.21 | = | 13,949) | ÷ | 11,563) |
| Dec 31, 2016 | 1.13 | = | 11,650) | ÷ | 10,298) |
| Dec 31, 2015 | 0.92 | = | 10,797) | ÷ | 11,708) |
| Dec 31, 2014 | 0.52 | = | 6,837) | ÷ | 13,109) |
| Dec 31, 2013 | 0.34 | = | 6,009) | ÷ | 17,502) |
| Dec 31, 2012 | 0.34 | = | 6,001) | ÷ | 17,575) |
| Dec 31, 2011 | 0.34 | = | 5,166) | ÷ | 15,420) |
| Dec 31, 2010 | 0.35 | = | 5,452) | ÷ | 15,663) |
| Dec 31, 2009 | 0.45 | = | 5,710) | ÷ | 12,764) |
| Dec 31, 2008 | 0.68 | = | 6,718) | ÷ | 9,879) |
| Dec 31, 2007 | 0.42 | = | 4,920) | ÷ | 11,747) |
| Dec 31, 2006 | 0.36 | = | 3,553) | ÷ | 9,959) |
| Dec 31, 2005 | 0.24 | = | 2,381) | ÷ | 10,100) |
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 capital structure of 3M Co. underwent three distinct phases between 2005 and 2021, characterized by an initial period of relative stability, a subsequent phase of aggressive leverage expansion, and a recent trend toward debt reduction and equity recovery.
- Phase of Moderate Leverage (2005–2013)
- During this period, the debt to equity ratio remained generally low, ranging between 0.24 and 0.45. A notable spike to 0.68 occurred in 2008, driven by an increase in total debt to 6,718 million US dollars and a simultaneous contraction in shareholders' equity to 9,879 million US dollars. Following this volatility, the ratio stabilized at 0.34 for three consecutive years from 2011 to 2013, reflecting a conservative approach to financing.
- Rapid Expansion of Leverage (2014–2019)
- A fundamental shift in the financing profile began in 2014. Total debt increased substantially from 6,837 million US dollars in 2014 to a peak of 20,313 million US dollars in 2019. This increase in liabilities coincided with a period of equity volatility, where shareholders' equity reached a low of 9,796 million US dollars in 2018. The compounding effect of rising debt and depressed equity resulted in the debt to equity ratio climbing steeply from 0.52 in 2014 to a peak of 2.02 in 2019.
- Correction and De-leveraging (2020–2021)
- The data from 2020 and 2021 indicates a strategic reversal of the previous leveraging trend. Total debt was reduced from the 2019 peak to 17,363 million US dollars by the end of 2021. Simultaneously, shareholders' equity experienced a strong recovery, rising to 15,046 million US dollars. These dual movements resulted in a significant reduction of the debt to equity ratio, which fell from 2.02 in 2019 to 1.15 by December 31, 2021.
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Comparison to Competitors
3M Co., debt to equity, 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 | 1.15 | — | 2.29 | 0.52 | 0.87 | 1.06 | 1.07 | 0.43 |
| Dec 31, 2020 | 1.46 | — | 2.42 | 0.54 | 2.11 | 1.28 | 2.02 | 0.44 |
| Dec 31, 2019 | 2.02 | — | 2.58 | 0.52 | 3.21 | 0.87 | 4.05 | 1.04 |
| Dec 31, 2018 | 1.49 | 40.85 | 2.60 | 0.47 | 3.55 | 0.89 | 9.04 | 1.18 |
| Dec 31, 2017 | 1.21 | 31.32 | 2.55 | 0.45 | 2.09 | 1.04 | — | 0.93 |
| Dec 31, 2016 | 1.13 | 12.18 | 2.80 | 0.56 | 1.80 | 0.81 | 9.45 | 0.87 |
| Dec 31, 2015 | 0.92 | 1.57 | 2.57 | 0.56 | 2.02 | 0.66 | 4.62 | 0.75 |
| Dec 31, 2014 | 0.52 | 1.05 | 2.35 | 0.57 | 2.85 | 0.49 | 1.81 | 0.63 |
| Dec 31, 2013 | 0.34 | 0.65 | 1.81 | 0.57 | 2.93 | 0.51 | 1.25 | 0.64 |
| Dec 31, 2012 | 0.34 | 1.77 | 2.29 | 0.72 | 3.37 | 0.58 | 157.90 | 0.90 |
| Dec 31, 2011 | 0.34 | 3.52 | 2.69 | 0.51 | 3.89 | 0.70 | 6.45 | 0.47 |
| Dec 31, 2010 | 0.35 | 4.49 | 2.63 | 0.47 | 4.02 | 0.62 | 1.35 | 0.48 |
| Dec 31, 2009 | 0.45 | 6.07 | 3.62 | 0.51 | 4.35 | 0.86 | 1.22 | 0.49 |
| Dec 31, 2008 | 0.68 | — | 5.84 | 0.68 | 5.00 | 1.17 | 1.24 | 0.72 |
| Dec 31, 2007 | 0.42 | 0.91 | 3.20 | 0.66 | 4.45 | 0.83 | 0.44 | 0.43 |
| Dec 31, 2006 | 0.36 | 2.01 | 3.98 | 0.63 | 3.85 | 0.52 | 0.64 | 0.46 |
| Dec 31, 2005 | 0.24 | 0.97 | 3.05 | 0.65 | 3.39 | 0.45 | 0.61 | 0.48 |
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., debt to equity, long-term trends, comparison to sector (capital goods)
| 3M Co. | Capital Goods | |
|---|---|---|
| Dec 31, 2021 | 1.15 | 1.26 |
| Dec 31, 2020 | 1.46 | 1.75 |
| Dec 31, 2019 | 2.02 | 2.08 |
| Dec 31, 2018 | 1.49 | 2.03 |
| Dec 31, 2017 | 1.21 | 1.74 |
| Dec 31, 2016 | 1.13 | 1.60 |
| Dec 31, 2015 | 0.92 | 1.64 |
| Dec 31, 2014 | 0.52 | 2.06 |
| Dec 31, 2013 | 0.34 | 2.00 |
| Dec 31, 2012 | 0.34 | 2.56 |
| Dec 31, 2011 | 0.34 | 3.04 |
| Dec 31, 2010 | 0.35 | 3.10 |
| Dec 31, 2009 | 0.45 | 3.46 |
| Dec 31, 2008 | 0.68 | 4.19 |
| Dec 31, 2007 | 0.42 | 3.21 |
| Dec 31, 2006 | 0.36 | 3.02 |
| Dec 31, 2005 | 0.24 | 2.53 |
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., debt to equity, long-term trends, comparison to industry (industrials)
| 3M Co. | Industrials | |
|---|---|---|
| Dec 31, 2021 | 1.15 | 1.37 |
| Dec 31, 2020 | 1.46 | 1.82 |
| Dec 31, 2019 | 2.02 | 1.82 |
| Dec 31, 2018 | 1.49 | 1.85 |
| Dec 31, 2017 | 1.21 | 1.65 |
| Dec 31, 2016 | 1.13 | 1.54 |
| Dec 31, 2015 | 0.92 | 1.51 |
| Dec 31, 2014 | 0.52 | 1.89 |
| Dec 31, 2013 | 0.34 | 1.79 |
| Dec 31, 2012 | 0.34 | 2.29 |
| Dec 31, 2011 | 0.34 | 2.60 |
| Dec 31, 2010 | 0.35 | 2.68 |
| Dec 31, 2009 | 0.45 | 3.01 |
| Dec 31, 2008 | 0.68 | 3.54 |
| Dec 31, 2007 | 0.42 | 2.73 |
| Dec 31, 2006 | 0.36 | 2.49 |
| Dec 31, 2005 | 0.24 | 2.42 |
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).