Analysis of Liquidity Ratios
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
3M Co., liquidity ratios
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.89 | 1.41 | 1.89 | 1.86 | 1.89 | |
| Quick ratio | 1.23 | 0.79 | 1.14 | 1.18 | 1.14 | |
| Cash ratio | 0.63 | 0.27 | 0.45 | 0.54 | 0.43 |
Based on: 10-K (filing date: 2021-02-04), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | 3M Co.’s current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | 3M Co.’s quick ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | 3M Co.’s cash ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Current Ratio
3M Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 14,982 | 12,971 | 13,709 | 14,277 | 11,726 | |
| Current liabilities | 7,948 | 9,222 | 7,244 | 7,687 | 6,219 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.89 | 1.41 | 1.89 | 1.86 | 1.89 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| General Electric Co. | 1.58 | 1.16 | 1.08 | 1.16 | 1.17 | |
| Honeywell International Inc. | 1.47 | 1.34 | 1.29 | 1.38 | 1.41 | |
| Current Ratio, Sector | ||||||
| General Industrials | — | 1.21 | 1.19 | 1.25 | 1.25 | |
| Current Ratio, Industry | ||||||
| Industrials | — | 1.18 | 1.16 | 1.27 | 1.24 | |
Based on: 10-K (filing date: 2021-02-04), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09).
1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 14,982 ÷ 7,948 = 1.89
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | 3M Co.’s current ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
Quick Ratio
3M Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 4,634 | 2,353 | 2,853 | 3,053 | 2,398 | |
| Marketable securities, current | 404 | 98 | 380 | 1,076 | 280 | |
| Accounts receivable, net of allowances | 4,705 | 4,791 | 5,020 | 4,911 | 4,392 | |
| Total quick assets | 9,743 | 7,242 | 8,253 | 9,040 | 7,070 | |
| Current liabilities | 7,948 | 9,222 | 7,244 | 7,687 | 6,219 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.23 | 0.79 | 1.14 | 1.18 | 1.14 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| General Electric Co. | 1.16 | 0.86 | 0.79 | 0.84 | 0.87 | |
| Honeywell International Inc. | 1.15 | 0.99 | 0.97 | 1.04 | 1.07 | |
| Quick Ratio, Sector | ||||||
| General Industrials | — | 0.88 | 0.85 | 0.90 | 0.92 | |
| Quick Ratio, Industry | ||||||
| Industrials | — | 0.68 | 0.67 | 0.79 | 0.75 | |
Based on: 10-K (filing date: 2021-02-04), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09).
1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,743 ÷ 7,948 = 1.23
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | 3M Co.’s quick ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Cash Ratio
3M Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 4,634 | 2,353 | 2,853 | 3,053 | 2,398 | |
| Marketable securities, current | 404 | 98 | 380 | 1,076 | 280 | |
| Total cash assets | 5,038 | 2,451 | 3,233 | 4,129 | 2,678 | |
| Current liabilities | 7,948 | 9,222 | 7,244 | 7,687 | 6,219 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.63 | 0.27 | 0.45 | 0.54 | 0.43 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| General Electric Co. | 0.78 | 0.60 | 0.50 | 0.54 | 0.58 | |
| Honeywell International Inc. | 0.79 | 0.58 | 0.58 | 0.57 | 0.57 | |
| Cash Ratio, Sector | ||||||
| General Industrials | — | 0.56 | 0.51 | 0.54 | 0.57 | |
| Cash Ratio, Industry | ||||||
| Industrials | — | 0.30 | 0.27 | 0.38 | 0.37 | |
Based on: 10-K (filing date: 2021-02-04), 10-K (filing date: 2020-02-06), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-09).
1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,038 ÷ 7,948 = 0.63
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | 3M Co.’s cash ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |