Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
3M Co., solvency ratios
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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | 3M Co.’s debt to equity ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | 3M Co.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | 3M Co.’s debt to capital ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | 3M Co.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | 3M Co.’s debt to assets ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | 3M Co.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | 3M Co.’s financial leverage ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | 3M Co.’s interest coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | 3M Co.’s fixed charge coverage ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Debt to Equity
3M Co., debt to equity 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) | ||||||
| Short-term borrowings and current portion of long-term debt | 806 | 2,795 | 1,211 | 1,853 | 972 | |
| Current obligations of finance leases | 22 | 21 | 17 | 13 | 9 | |
| Long-term debt, excluding current portion | 17,989 | 17,518 | 13,411 | 12,096 | 10,678 | |
| Finance leases, net of current obligations | 93 | 111 | 75 | 60 | 45 | |
| Total debt | 18,910 | 20,445 | 14,714 | 14,022 | 11,704 | |
| Total 3M Company shareholders’ equity | 12,867 | 10,063 | 9,796 | 11,563 | 10,298 | |
| Solvency Ratio | ||||||
| Debt to equity1 | 1.47 | 2.03 | 1.50 | 1.21 | 1.14 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Boeing Co. | — | — | 40.85 | 31.32 | 12.18 | |
| Caterpillar Inc. | 2.42 | 2.58 | 2.60 | 2.55 | 2.80 | |
| General Electric Co. | 2.11 | 3.21 | 3.55 | 2.09 | 1.80 | |
| Honeywell International Inc. | 1.28 | 0.87 | 0.89 | 1.04 | 0.81 | |
| Illinois Tool Works Inc. | 2.55 | 2.56 | 2.27 | 1.82 | 1.84 | |
| Lockheed Martin Corp. | 2.02 | 4.05 | 10.12 | — | 9.45 | |
| Raytheon Technologies Corp. | 0.44 | 1.04 | 1.18 | 0.93 | 0.87 | |
| Debt to Equity, Sector | ||||||
| Capital Goods | 1.87 | 2.31 | 2.22 | 1.87 | 1.68 | |
| Debt to Equity, Industry | ||||||
| Industrials | 1.79 | 1.99 | 1.84 | 1.59 | 1.54 | |
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
Debt to equity = Total debt ÷ Total 3M Company shareholders’ equity
= 18,910 ÷ 12,867 = 1.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | 3M Co.’s debt to equity ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Debt to Equity (including Operating Lease Liability)
3M Co., debt to equity (including operating lease liability) 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) | ||||||
| Short-term borrowings and current portion of long-term debt | 806 | 2,795 | 1,211 | 1,853 | 972 | |
| Current obligations of finance leases | 22 | 21 | 17 | 13 | 9 | |
| Long-term debt, excluding current portion | 17,989 | 17,518 | 13,411 | 12,096 | 10,678 | |
| Finance leases, net of current obligations | 93 | 111 | 75 | 60 | 45 | |
| Total debt | 18,910 | 20,445 | 14,714 | 14,022 | 11,704 | |
| Operating lease liabilities, current | 256 | 247 | — | — | — | |
| Operating lease liabilities, non-current | 609 | 607 | — | — | — | |
| Total debt (including operating lease liability) | 19,775 | 21,299 | 14,714 | 14,022 | 11,704 | |
| Total 3M Company shareholders’ equity | 12,867 | 10,063 | 9,796 | 11,563 | 10,298 | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 1.54 | 2.12 | 1.50 | 1.21 | 1.14 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | — | — | 40.85 | 31.32 | 12.18 | |
| Caterpillar Inc. | 2.46 | 2.62 | 2.60 | 2.55 | 2.80 | |
| General Electric Co. | 2.20 | 3.32 | 3.55 | 2.09 | 1.80 | |
| Honeywell International Inc. | 1.32 | 0.90 | 0.89 | 1.04 | 0.81 | |
| Illinois Tool Works Inc. | 2.61 | 2.62 | 2.27 | 1.82 | 1.84 | |
| Lockheed Martin Corp. | 2.21 | 4.40 | 10.12 | — | 9.45 | |
| Raytheon Technologies Corp. | 0.47 | 1.11 | 1.18 | 0.93 | 0.87 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 1.93 | 2.41 | 2.22 | 1.87 | 1.68 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Industrials | 1.93 | 2.08 | 1.84 | 1.59 | 1.54 | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total 3M Company shareholders’ equity
= 19,775 ÷ 12,867 = 1.54
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | 3M Co.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
Debt to Capital
3M Co., debt to capital 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) | ||||||
| Short-term borrowings and current portion of long-term debt | 806 | 2,795 | 1,211 | 1,853 | 972 | |
| Current obligations of finance leases | 22 | 21 | 17 | 13 | 9 | |
| Long-term debt, excluding current portion | 17,989 | 17,518 | 13,411 | 12,096 | 10,678 | |
| Finance leases, net of current obligations | 93 | 111 | 75 | 60 | 45 | |
| Total debt | 18,910 | 20,445 | 14,714 | 14,022 | 11,704 | |
| Total 3M Company shareholders’ equity | 12,867 | 10,063 | 9,796 | 11,563 | 10,298 | |
| Total capital | 31,777 | 30,508 | 24,510 | 25,585 | 22,002 | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.60 | 0.67 | 0.60 | 0.55 | 0.53 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Boeing Co. | 1.40 | 1.46 | 0.98 | 0.97 | 0.92 | |
| Caterpillar Inc. | 0.71 | 0.72 | 0.72 | 0.72 | 0.74 | |
| General Electric Co. | 0.68 | 0.76 | 0.78 | 0.68 | 0.64 | |
| Honeywell International Inc. | 0.56 | 0.46 | 0.47 | 0.51 | 0.45 | |
| Illinois Tool Works Inc. | 0.72 | 0.72 | 0.69 | 0.64 | 0.65 | |
| Lockheed Martin Corp. | 0.67 | 0.80 | 0.91 | 1.05 | 0.90 | |
| Raytheon Technologies Corp. | 0.31 | 0.51 | 0.54 | 0.48 | 0.46 | |
| Debt to Capital, Sector | ||||||
| Capital Goods | 0.65 | 0.70 | 0.69 | 0.65 | 0.63 | |
| Debt to Capital, Industry | ||||||
| Industrials | 0.64 | 0.67 | 0.65 | 0.61 | 0.61 | |
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
Debt to capital = Total debt ÷ Total capital
= 18,910 ÷ 31,777 = 0.60
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | 3M Co.’s debt to capital ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Debt to Capital (including Operating Lease Liability)
3M Co., debt to capital (including operating lease liability) 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) | ||||||
| Short-term borrowings and current portion of long-term debt | 806 | 2,795 | 1,211 | 1,853 | 972 | |
| Current obligations of finance leases | 22 | 21 | 17 | 13 | 9 | |
| Long-term debt, excluding current portion | 17,989 | 17,518 | 13,411 | 12,096 | 10,678 | |
| Finance leases, net of current obligations | 93 | 111 | 75 | 60 | 45 | |
| Total debt | 18,910 | 20,445 | 14,714 | 14,022 | 11,704 | |
| Operating lease liabilities, current | 256 | 247 | — | — | — | |
| Operating lease liabilities, non-current | 609 | 607 | — | — | — | |
| Total debt (including operating lease liability) | 19,775 | 21,299 | 14,714 | 14,022 | 11,704 | |
| Total 3M Company shareholders’ equity | 12,867 | 10,063 | 9,796 | 11,563 | 10,298 | |
| Total capital (including operating lease liability) | 32,642 | 31,362 | 24,510 | 25,585 | 22,002 | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.61 | 0.68 | 0.60 | 0.55 | 0.53 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 1.39 | 1.43 | 0.98 | 0.97 | 0.92 | |
| Caterpillar Inc. | 0.71 | 0.72 | 0.72 | 0.72 | 0.74 | |
| General Electric Co. | 0.69 | 0.77 | 0.78 | 0.68 | 0.64 | |
| Honeywell International Inc. | 0.57 | 0.47 | 0.47 | 0.51 | 0.45 | |
| Illinois Tool Works Inc. | 0.72 | 0.72 | 0.69 | 0.64 | 0.65 | |
| Lockheed Martin Corp. | 0.69 | 0.81 | 0.91 | 1.05 | 0.90 | |
| Raytheon Technologies Corp. | 0.32 | 0.53 | 0.54 | 0.48 | 0.46 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.66 | 0.71 | 0.69 | 0.65 | 0.63 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.66 | 0.68 | 0.65 | 0.61 | 0.61 | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 19,775 ÷ 32,642 = 0.61
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | 3M Co.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
Debt to Assets
3M Co., debt to assets 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) | ||||||
| Short-term borrowings and current portion of long-term debt | 806 | 2,795 | 1,211 | 1,853 | 972 | |
| Current obligations of finance leases | 22 | 21 | 17 | 13 | 9 | |
| Long-term debt, excluding current portion | 17,989 | 17,518 | 13,411 | 12,096 | 10,678 | |
| Finance leases, net of current obligations | 93 | 111 | 75 | 60 | 45 | |
| Total debt | 18,910 | 20,445 | 14,714 | 14,022 | 11,704 | |
| Total assets | 47,344 | 44,659 | 36,500 | 37,987 | 32,906 | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.40 | 0.46 | 0.40 | 0.37 | 0.36 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Boeing Co. | 0.42 | 0.20 | 0.12 | 0.12 | 0.11 | |
| Caterpillar Inc. | 0.47 | 0.48 | 0.47 | 0.45 | 0.49 | |
| General Electric Co. | 0.30 | 0.34 | 0.36 | 0.36 | 0.37 | |
| Honeywell International Inc. | 0.35 | 0.27 | 0.28 | 0.30 | 0.29 | |
| Illinois Tool Works Inc. | 0.52 | 0.51 | 0.50 | 0.50 | 0.52 | |
| Lockheed Martin Corp. | 0.24 | 0.27 | 0.31 | 0.31 | 0.30 | |
| Raytheon Technologies Corp. | 0.20 | 0.31 | 0.34 | 0.28 | 0.27 | |
| Debt to Assets, Sector | ||||||
| Capital Goods | 0.33 | 0.33 | 0.33 | 0.33 | 0.33 | |
| Debt to Assets, Industry | ||||||
| Industrials | 0.34 | 0.35 | 0.34 | 0.33 | 0.33 | |
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
Debt to assets = Total debt ÷ Total assets
= 18,910 ÷ 47,344 = 0.40
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | 3M Co.’s debt to assets ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level. |
Debt to Assets (including Operating Lease Liability)
3M Co., debt to assets (including operating lease liability) 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) | ||||||
| Short-term borrowings and current portion of long-term debt | 806 | 2,795 | 1,211 | 1,853 | 972 | |
| Current obligations of finance leases | 22 | 21 | 17 | 13 | 9 | |
| Long-term debt, excluding current portion | 17,989 | 17,518 | 13,411 | 12,096 | 10,678 | |
| Finance leases, net of current obligations | 93 | 111 | 75 | 60 | 45 | |
| Total debt | 18,910 | 20,445 | 14,714 | 14,022 | 11,704 | |
| Operating lease liabilities, current | 256 | 247 | — | — | — | |
| Operating lease liabilities, non-current | 609 | 607 | — | — | — | |
| Total debt (including operating lease liability) | 19,775 | 21,299 | 14,714 | 14,022 | 11,704 | |
| Total assets | 47,344 | 44,659 | 36,500 | 37,987 | 32,906 | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.42 | 0.48 | 0.40 | 0.37 | 0.36 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Boeing Co. | 0.43 | 0.21 | 0.12 | 0.12 | 0.11 | |
| Caterpillar Inc. | 0.48 | 0.49 | 0.47 | 0.45 | 0.49 | |
| General Electric Co. | 0.31 | 0.35 | 0.36 | 0.36 | 0.37 | |
| Honeywell International Inc. | 0.36 | 0.28 | 0.28 | 0.30 | 0.29 | |
| Illinois Tool Works Inc. | 0.53 | 0.53 | 0.50 | 0.50 | 0.52 | |
| Lockheed Martin Corp. | 0.26 | 0.29 | 0.31 | 0.31 | 0.30 | |
| Raytheon Technologies Corp. | 0.21 | 0.33 | 0.34 | 0.28 | 0.27 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Capital Goods | 0.34 | 0.34 | 0.33 | 0.33 | 0.33 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Industrials | 0.37 | 0.36 | 0.34 | 0.33 | 0.33 | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 19,775 ÷ 47,344 = 0.42
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | 3M Co.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
Financial Leverage
3M Co., financial leverage 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) | ||||||
| Total assets | 47,344 | 44,659 | 36,500 | 37,987 | 32,906 | |
| Total 3M Company shareholders’ equity | 12,867 | 10,063 | 9,796 | 11,563 | 10,298 | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.68 | 4.44 | 3.73 | 3.29 | 3.20 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Boeing Co. | — | — | 346.19 | 260.09 | 110.16 | |
| Caterpillar Inc. | 5.11 | 5.38 | 5.59 | 5.62 | 5.69 | |
| General Electric Co. | 7.13 | 9.40 | 9.98 | 5.88 | 4.82 | |
| Honeywell International Inc. | 3.68 | 3.17 | 3.18 | 3.44 | 2.80 | |
| Illinois Tool Works Inc. | 4.91 | 4.98 | 4.57 | 3.66 | 3.57 | |
| Lockheed Martin Corp. | 8.43 | 15.20 | 32.19 | — | 31.64 | |
| Raytheon Technologies Corp. | 2.25 | 3.34 | 3.49 | 3.27 | 3.25 | |
| Financial Leverage, Sector | ||||||
| Capital Goods | 5.71 | 7.08 | 6.81 | 5.72 | 5.04 | |
| Financial Leverage, Industry | ||||||
| Industrials | 5.24 | 5.77 | 5.43 | 4.78 | 4.64 | |
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
Financial leverage = Total assets ÷ Total 3M Company shareholders’ equity
= 47,344 ÷ 12,867 = 3.68
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | 3M Co.’s financial leverage ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020. |
Interest Coverage
3M Co., interest coverage 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) | ||||||
| Net income attributable to 3M | 5,384 | 4,570 | 5,349 | 4,858 | 5,050 | |
| Add: Net income attributable to noncontrolling interest | 4 | 12 | 14 | 11 | 8 | |
| Add: Income tax expense | 1,318 | 1,130 | 1,637 | 2,679 | 1,995 | |
| Add: Interest expense | 529 | 448 | 350 | 322 | 199 | |
| Earnings before interest and tax (EBIT) | 7,235 | 6,160 | 7,350 | 7,870 | 7,252 | |
| Solvency Ratio | ||||||
| Interest coverage1 | 13.68 | 13.75 | 21.00 | 24.44 | 36.44 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Boeing Co. | -5.71 | -2.19 | 25.39 | 28.90 | 19.19 | |
| Caterpillar Inc. | 8.80 | 19.62 | 20.42 | 8.72 | 1.26 | |
| General Electric Co. | 2.59 | 1.27 | -2.98 | -0.81 | 2.80 | |
| Honeywell International Inc. | 17.75 | 22.17 | 21.40 | 22.84 | 20.07 | |
| Illinois Tool Works Inc. | 14.13 | 15.88 | 14.21 | 13.58 | 13.27 | |
| Lockheed Martin Corp. | 14.93 | 12.09 | 9.74 | 9.09 | 8.37 | |
| Raytheon Technologies Corp. | -0.67 | 5.65 | 7.76 | 8.63 | 7.14 | |
| Interest Coverage, Sector | ||||||
| Capital Goods | 2.77 | 5.39 | 4.55 | 5.34 | 6.12 | |
| Interest Coverage, Industry | ||||||
| Industrials | 3.58 | 5.85 | 5.80 | 6.57 | 6.71 | |
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
Interest coverage = EBIT ÷ Interest expense
= 7,235 ÷ 529 = 13.68
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | 3M Co.’s interest coverage ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Fixed Charge Coverage
3M Co., fixed charge coverage 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) | ||||||
| Net income attributable to 3M | 5,384 | 4,570 | 5,349 | 4,858 | 5,050 | |
| Add: Net income attributable to noncontrolling interest | 4 | 12 | 14 | 11 | 8 | |
| Add: Income tax expense | 1,318 | 1,130 | 1,637 | 2,679 | 1,995 | |
| Add: Interest expense | 529 | 448 | 350 | 322 | 199 | |
| Earnings before interest and tax (EBIT) | 7,235 | 6,160 | 7,350 | 7,870 | 7,252 | |
| Add: Operating lease cost | 348 | 308 | 393 | 343 | 318 | |
| Earnings before fixed charges and tax | 7,583 | 6,468 | 7,743 | 8,213 | 7,570 | |
| Interest expense | 529 | 448 | 350 | 322 | 199 | |
| Operating lease cost | 348 | 308 | 393 | 343 | 318 | |
| Fixed charges | 877 | 756 | 743 | 665 | 517 | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 8.65 | 8.56 | 10.42 | 12.35 | 14.64 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Boeing Co. | -4.75 | -1.19 | 15.81 | 16.62 | 10.39 | |
| Caterpillar Inc. | 6.58 | 13.01 | 11.81 | 5.75 | 1.15 | |
| General Electric Co. | 1.93 | 1.09 | -1.77 | -0.30 | 2.07 | |
| Honeywell International Inc. | 11.49 | 14.06 | 11.30 | 10.85 | 9.89 | |
| Illinois Tool Works Inc. | 9.48 | 10.84 | 9.91 | 9.61 | 9.12 | |
| Lockheed Martin Corp. | 11.12 | 9.12 | 7.38 | 7.43 | 6.65 | |
| Raytheon Technologies Corp. | -0.24 | 4.31 | 6.03 | 6.44 | 5.61 | |
| Fixed Charge Coverage, Sector | ||||||
| Capital Goods | 2.22 | 3.99 | 3.29 | 3.81 | 4.30 | |
| Fixed Charge Coverage, Industry | ||||||
| Industrials | 2.61 | 3.95 | 3.72 | 4.12 | 4.25 | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,583 ÷ 877 = 8.65
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | 3M Co.’s fixed charge coverage ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |