Stock Analysis on Net
Stock Analysis on Net

3M Co. (NYSE:MMM)

Analysis of Solvency Ratios

Microsoft Excel LibreOffice Calc

Solvency Ratios (Summary)

3M Co., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Debt Ratios
Debt to equity 1.47 2.03 1.50 1.21 1.14
Debt to equity (including operating lease liability) 1.54 2.12 1.50 1.21 1.14
Debt to capital 0.60 0.67 0.60 0.55 0.53
Debt to capital (including operating lease liability) 0.61 0.68 0.60 0.55 0.53
Debt to assets 0.40 0.46 0.40 0.37 0.36
Debt to assets (including operating lease liability) 0.42 0.48 0.40 0.37 0.36
Financial leverage 3.68 4.44 3.73 3.29 3.20
Coverage Ratios
Interest coverage 13.68 13.75 21.00 24.44 36.44
Fixed charge coverage 8.65 8.56 10.42 12.35 14.64

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).

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

Microsoft Excel LibreOffice Calc
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 
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

Microsoft Excel LibreOffice Calc
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 
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

Microsoft Excel LibreOffice Calc
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 
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

Microsoft Excel LibreOffice Calc
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 
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

Microsoft Excel LibreOffice Calc
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 
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

Microsoft Excel LibreOffice Calc
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 
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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 12  14  11 
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

Microsoft Excel LibreOffice Calc
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 12  14  11 
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.