Adjusted Ratios (Summary)

3M Co., adjusted ratios

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Activity
Total Asset Turnover
Reported 0.83 0.92 0.93 1.02 0.92
Adjusted 0.82 0.90 0.91 1.03 0.92
Liquidity
Current Ratio
Reported 1.86 1.89 1.54 1.96 1.70
Adjusted 2.00 2.08 1.68 2.10 1.78
Solvency
Debt to Equity
Reported 1.21 1.14 0.93 0.53 0.35
Adjusted 1.25 1.16 0.94 0.61 0.38
Debt to Capital
Reported 0.55 0.53 0.48 0.34 0.26
Adjusted 0.56 0.54 0.48 0.38 0.27
Financial Leverage
Reported 3.29 3.20 2.79 2.39 1.92
Adjusted 3.21 3.10 2.65 2.43 1.83
Profitability
Net Profit Margin
Reported 15.35% 16.77% 15.96% 15.57% 15.09%
Adjusted 16.89% 13.77% 15.79% 7.63% 17.27%
Return on Equity (ROE)
Reported 42.01% 49.04% 41.28% 37.81% 26.62%
Adjusted 44.34% 38.53% 38.19% 19.17% 29.11%
Return on Assets (ROA)
Reported 12.79% 15.35% 14.77% 15.85% 13.89%
Adjusted 13.82% 12.44% 14.39% 7.88% 15.88%
Ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. 3M Co.'s adjusted total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. 3M Co.'s adjusted current ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. 3M Co.'s adjusted debt-to-equity ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. 3M Co.'s adjusted debt-to-capital ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
3M Co.'s adjusted financial leverage increased from 2015 to 2016 and from 2016 to 2017.
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. 3M Co.'s adjusted net profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.
Adjusted ROE A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. 3M Co.'s adjusted ROE improved from 2015 to 2016 and from 2016 to 2017.
Adjusted ROA A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. 3M Co.'s adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.

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Adjusted Total Asset Turnover

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Net sales 31,657  30,109  30,274  31,821  30,871 
Total assets 37,987  32,906  32,718  31,269  33,550 
Ratio
Total asset turnover1 0.83 0.92 0.93 1.02 0.92
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net sales2 31,641  30,138  30,249  31,843  30,911 
Adjusted total assets3 38,648  33,355  33,200  30,827  33,611 
Ratio
Adjusted total asset turnover4 0.82 0.90 0.91 1.03 0.92

2017 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 31,657 ÷ 37,987 = 0.83

2 Adjusted net sales. See Details »

3 Adjusted total assets. See Details »

4 Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 31,641 ÷ 38,648 = 0.82

Ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. 3M Co.'s adjusted total asset turnover deteriorated from 2015 to 2016 and from 2016 to 2017.

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Adjusted Current Ratio

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Current assets 14,277  11,726  10,986  11,765  12,733 
Current liabilities 7,687  6,219  7,118  5,998  7,498 
Ratio
Current ratio1 1.86 1.89 1.54 1.96 1.70
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted current assets2 14,380  11,814  11,077  11,415  12,335 
Adjusted current liabilities3 7,174  5,668  6,600  5,423  6,940 
Ratio
Adjusted current ratio4 2.00 2.08 1.68 2.10 1.78

2017 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 14,277 ÷ 7,687 = 1.86

2 Adjusted current assets. See Details »

3 Adjusted current liabilities. See Details »

4 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 14,380 ÷ 7,174 = 2.00

Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. 3M Co.'s adjusted current ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

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Adjusted Debt to Equity

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Total debt 14,009  11,695  10,843  6,896  6,067 
Total 3M Company shareholders' equity 11,563  10,298  11,708  13,109  17,502 
Ratio
Debt to equity1 1.21 1.14 0.93 0.53 0.35
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 15,078  12,478  11,744  7,693  6,886 
Adjusted total equity3 12,049  10,773  12,507  12,670  18,336 
Ratio
Adjusted debt to equity4 1.25 1.16 0.94 0.61 0.38

2017 Calculations

1 Debt to equity = Total debt ÷ Total 3M Company shareholders' equity
= 14,009 ÷ 11,563 = 1.21

2 Adjusted total debt. See Details »

3 Adjusted total equity. See Details »

4 Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 15,078 ÷ 12,049 = 1.25

Ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. 3M Co.'s adjusted debt-to-equity ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

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Adjusted Debt to Capital

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Total debt 14,009  11,695  10,843  6,896  6,067 
Total capital 25,572  21,993  22,551  20,005  23,569 
Ratio
Debt to capital1 0.55 0.53 0.48 0.34 0.26
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 15,078  12,478  11,744  7,693  6,886 
Adjusted total capital3 27,127  23,251  24,251  20,363  25,222 
Ratio
Adjusted debt to capital4 0.56 0.54 0.48 0.38 0.27

2017 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 14,009 ÷ 25,572 = 0.55

2 Adjusted total debt. See Details »

3 Adjusted total capital. See Details »

4 Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 15,078 ÷ 27,127 = 0.56

Ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. 3M Co.'s adjusted debt-to-capital ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

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Adjusted Financial Leverage

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Total assets 37,987  32,906  32,718  31,269  33,550 
Total 3M Company shareholders' equity 11,563  10,298  11,708  13,109  17,502 
Ratio
Financial leverage1 3.29 3.20 2.79 2.39 1.92
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total assets2 38,648  33,355  33,200  30,827  33,611 
Adjusted total equity3 12,049  10,773  12,507  12,670  18,336 
Ratio
Adjusted financial leverage4 3.21 3.10 2.65 2.43 1.83

2017 Calculations

1 Financial leverage = Total assets ÷ Total 3M Company shareholders' equity
= 37,987 ÷ 11,563 = 3.29

2 Adjusted total assets. See Details »

3 Adjusted total equity. See Details »

4 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 38,648 ÷ 12,049 = 3.21

Ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
3M Co.'s adjusted financial leverage increased from 2015 to 2016 and from 2016 to 2017.

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Adjusted Net Profit Margin

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Net income attributable to 3M 4,858  5,050  4,833  4,956  4,659 
Net sales 31,657  30,109  30,274  31,821  30,871 
Ratio
Net profit margin1 15.35% 16.77% 15.96% 15.57% 15.09%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted comprehensive income including noncontrolling interest2 5,343  4,151  4,777  2,429  5,337 
Adjusted net sales3 31,641  30,138  30,249  31,843  30,911 
Ratio
Adjusted net profit margin4 16.89% 13.77% 15.79% 7.63% 17.27%

2017 Calculations

1 Net profit margin = 100 × Net income attributable to 3M ÷ Net sales
= 100 × 4,858 ÷ 31,657 = 15.35%

2 Adjusted comprehensive income including noncontrolling interest. See Details »

3 Adjusted net sales. See Details »

4 Adjusted net profit margin = 100 × Adjusted comprehensive income including noncontrolling interest ÷ Adjusted net sales
= 100 × 5,343 ÷ 31,641 = 16.89%

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. 3M Co.'s adjusted net profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

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Adjusted Return on Equity (ROE)

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Net income attributable to 3M 4,858  5,050  4,833  4,956  4,659 
Total 3M Company shareholders' equity 11,563  10,298  11,708  13,109  17,502 
Ratio
ROE1 42.01% 49.04% 41.28% 37.81% 26.62%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted comprehensive income including noncontrolling interest2 5,343  4,151  4,777  2,429  5,337 
Adjusted total equity3 12,049  10,773  12,507  12,670  18,336 
Ratio
Adjusted ROE4 44.34% 38.53% 38.19% 19.17% 29.11%

2017 Calculations

1 ROE = 100 × Net income attributable to 3M ÷ Total 3M Company shareholders' equity
= 100 × 4,858 ÷ 11,563 = 42.01%

2 Adjusted comprehensive income including noncontrolling interest. See Details »

3 Adjusted total equity. See Details »

4 Adjusted ROE = 100 × Adjusted comprehensive income including noncontrolling interest ÷ Adjusted total equity
= 100 × 5,343 ÷ 12,049 = 44.34%

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. 3M Co.'s adjusted ROE improved from 2015 to 2016 and from 2016 to 2017.

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Adjusted Return on Assets (ROA)

 
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Reported
Selected Financial Data (USD $ in millions)
Net income attributable to 3M 4,858  5,050  4,833  4,956  4,659 
Total assets 37,987  32,906  32,718  31,269  33,550 
Ratio
ROA1 12.79% 15.35% 14.77% 15.85% 13.89%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted comprehensive income including noncontrolling interest2 5,343  4,151  4,777  2,429  5,337 
Adjusted total assets3 38,648  33,355  33,200  30,827  33,611 
Ratio
Adjusted ROA4 13.82% 12.44% 14.39% 7.88% 15.88%

2017 Calculations

1 ROA = 100 × Net income attributable to 3M ÷ Total assets
= 100 × 4,858 ÷ 37,987 = 12.79%

2 Adjusted comprehensive income including noncontrolling interest. See Details »

3 Adjusted total assets. See Details »

4 Adjusted ROA = 100 × Adjusted comprehensive income including noncontrolling interest ÷ Adjusted total assets
= 100 × 5,343 ÷ 38,648 = 13.82%

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. 3M Co.'s adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.

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