Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

3M Co. (NYSE:MMM)

Analysis of Solvency Ratios

Beginner level


Solvency Ratios (Summary)

3M Co., solvency ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Debt Ratios
Debt to equity 2.02 1.49 1.21 1.13 0.92
Debt to equity (including operating lease liability) 2.10 1.49 1.21 1.13 0.92
Debt to capital 0.67 0.60 0.55 0.53 0.48
Debt to capital (including operating lease liability) 0.68 0.60 0.55 0.53 0.48
Debt to assets 0.45 0.40 0.37 0.35 0.33
Debt to assets (including operating lease liability) 0.47 0.40 0.37 0.35 0.33
Financial leverage 4.44 3.73 3.29 3.20 2.79
Coverage Ratios
Interest coverage 13.75 21.00 24.44 36.44 46.79
Fixed charge coverage 8.56 10.42 12.35 14.64 15.67

Based on: 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), 10-K (filing date: 2016-02-11).

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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. 3M Co.’s debt to assets ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. 3M Co.’s financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

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 2017 to 2018 and from 2018 to 2019.
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 2017 to 2018 and from 2018 to 2019.

Debt to Equity

3M Co., debt to equity calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 2,795  1,211  1,853  972  2,044 
Long-term debt, excluding current portion 17,518  13,411  12,096  10,678  8,753 
Total debt 20,313  14,622  13,949  11,650  10,797 
 
Total 3M Company shareholders’ equity 10,063  9,796  11,563  10,298  11,708 
Solvency Ratio
Debt to equity1 2.02 1.49 1.21 1.13 0.92
Benchmarks
Debt to Equity, Competitors2
General Electric Co. 3.21 3.55 2.09 1.80 2.02
Honeywell International Inc. 0.87 0.89 1.04 0.81 0.66
Debt to Equity, Sector
General Industrials 2.24 2.39 1.79 1.55 1.72
Debt to Equity, Industry
Industrials 1.89 1.88 1.61 1.46 1.47

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Debt to equity = Total debt ÷ Total 3M Company shareholders’ equity
= 20,313 ÷ 10,063 = 2.02

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 2017 to 2018 and from 2018 to 2019.

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 2,795  1,211  1,853  972  2,044 
Long-term debt, excluding current portion 17,518  13,411  12,096  10,678  8,753 
Total debt 20,313  14,622  13,949  11,650  10,797 
Operating lease liabilities, current 247  —  —  —  — 
Operating lease liabilities, non-current 607  —  —  —  — 
Total debt (including operating lease liability) 21,167  14,622  13,949  11,650  10,797 
 
Total 3M Company shareholders’ equity 10,063  9,796  11,563  10,298  11,708 
Solvency Ratio
Debt to equity (including operating lease liability)1 2.10 1.49 1.21 1.13 0.92
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
General Electric Co. 3.32 3.55 2.09 1.80 2.02
Honeywell International Inc. 0.90 0.89 1.04 0.81 0.66
Debt to Equity (including Operating Lease Liability), Sector
General Industrials 2.32 2.39 1.79 1.55 1.72
Debt to Equity (including Operating Lease Liability), Industry
Industrials 2.00 1.88 1.61 1.46 1.47

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total 3M Company shareholders’ equity
= 21,167 ÷ 10,063 = 2.10

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 2017 to 2018 and from 2018 to 2019.

Debt to Capital

3M Co., debt to capital calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 2,795  1,211  1,853  972  2,044 
Long-term debt, excluding current portion 17,518  13,411  12,096  10,678  8,753 
Total debt 20,313  14,622  13,949  11,650  10,797 
Total 3M Company shareholders’ equity 10,063  9,796  11,563  10,298  11,708 
Total capital 30,376  24,418  25,512  21,948  22,505 
Solvency Ratio
Debt to capital1 0.67 0.60 0.55 0.53 0.48
Benchmarks
Debt to Capital, Competitors2
General Electric Co. 0.76 0.78 0.68 0.64 0.67
Honeywell International Inc. 0.46 0.47 0.51 0.45 0.40
Debt to Capital, Sector
General Industrials 0.69 0.70 0.64 0.61 0.63
Debt to Capital, Industry
Industrials 0.65 0.65 0.62 0.59 0.59

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 20,313 ÷ 30,376 = 0.67

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 2017 to 2018 and from 2018 to 2019.

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 2,795  1,211  1,853  972  2,044 
Long-term debt, excluding current portion 17,518  13,411  12,096  10,678  8,753 
Total debt 20,313  14,622  13,949  11,650  10,797 
Operating lease liabilities, current 247  —  —  —  — 
Operating lease liabilities, non-current 607  —  —  —  — 
Total debt (including operating lease liability) 21,167  14,622  13,949  11,650  10,797 
Total 3M Company shareholders’ equity 10,063  9,796  11,563  10,298  11,708 
Total capital (including operating lease liability) 31,230  24,418  25,512  21,948  22,505 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.68 0.60 0.55 0.53 0.48
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
General Electric Co. 0.77 0.78 0.68 0.64 0.67
Honeywell International Inc. 0.47 0.47 0.51 0.45 0.40
Debt to Capital (including Operating Lease Liability), Sector
General Industrials 0.70 0.70 0.64 0.61 0.63
Debt to Capital (including Operating Lease Liability), Industry
Industrials 0.67 0.65 0.62 0.59 0.59

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 21,167 ÷ 31,230 = 0.68

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 2017 to 2018 and from 2018 to 2019.

Debt to Assets

3M Co., debt to assets calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 2,795  1,211  1,853  972  2,044 
Long-term debt, excluding current portion 17,518  13,411  12,096  10,678  8,753 
Total debt 20,313  14,622  13,949  11,650  10,797 
 
Total assets 44,659  36,500  37,987  32,906  32,718 
Solvency Ratio
Debt to assets1 0.45 0.40 0.37 0.35 0.33
Benchmarks
Debt to Assets, Competitors2
General Electric Co. 0.34 0.36 0.36 0.37 0.40
Honeywell International Inc. 0.27 0.28 0.30 0.29 0.24
Debt to Assets, Sector
General Industrials 0.34 0.35 0.35 0.36 0.38
Debt to Assets, Industry
Industrials 0.32 0.32 0.32 0.30 0.32

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,313 ÷ 44,659 = 0.45

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 2017 to 2018 and from 2018 to 2019.

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, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Short-term borrowings and current portion of long-term debt 2,795  1,211  1,853  972  2,044 
Long-term debt, excluding current portion 17,518  13,411  12,096  10,678  8,753 
Total debt 20,313  14,622  13,949  11,650  10,797 
Operating lease liabilities, current 247  —  —  —  — 
Operating lease liabilities, non-current 607  —  —  —  — 
Total debt (including operating lease liability) 21,167  14,622  13,949  11,650  10,797 
 
Total assets 44,659  36,500  37,987  32,906  32,718 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.47 0.40 0.37 0.35 0.33
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
General Electric Co. 0.35 0.36 0.36 0.37 0.40
Honeywell International Inc. 0.28 0.28 0.30 0.29 0.24
Debt to Assets (including Operating Lease Liability), Sector
General Industrials 0.36 0.35 0.35 0.36 0.38
Debt to Assets (including Operating Lease Liability), Industry
Industrials 0.34 0.32 0.32 0.30 0.32

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 21,167 ÷ 44,659 = 0.47

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 2017 to 2018 and from 2018 to 2019.

Financial Leverage

3M Co., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Total assets 44,659  36,500  37,987  32,906  32,718 
Total 3M Company shareholders’ equity 10,063  9,796  11,563  10,298  11,708 
Solvency Ratio
Financial leverage1 4.44 3.73 3.29 3.20 2.79
Benchmarks
Financial Leverage, Competitors2
General Electric Co. 9.40 9.98 5.88 4.82 5.01
Honeywell International Inc. 3.17 3.18 3.44 2.80 2.70
Financial Leverage, Sector
General Industrials 6.49 6.84 5.11 4.29 4.48
Financial Leverage, Industry
Industrials 5.90 5.81 5.06 4.79 4.60

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Financial leverage = Total assets ÷ Total 3M Company shareholders’ equity
= 44,659 ÷ 10,063 = 4.44

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 2017 to 2018 and from 2018 to 2019.

Interest Coverage

3M Co., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to 3M 4,570  5,349  4,858  5,050  4,833 
Add: Net income attributable to noncontrolling interest 12  14  11 
Add: Income tax expense 1,130  1,637  2,679  1,995  1,982 
Add: Interest expense 448  350  322  199  149 
Earnings before interest and tax (EBIT) 6,160  7,350  7,870  7,252  6,972 
Solvency Ratio
Interest coverage1 13.75 21.00 24.44 36.44 46.79
Benchmarks
Interest Coverage, Competitors2
General Electric Co. 1.27 -2.98 -0.81 2.80 3.36
Honeywell International Inc. 22.17 21.40 22.84 20.07 22.25
Interest Coverage, Sector
General Industrials 3.87 0.02 2.03 5.05 6.51
Interest Coverage, Industry
Industrials 6.83 6.39 7.42 7.94 10.49

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,160 ÷ 448 = 13.75

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 2017 to 2018 and from 2018 to 2019.

Fixed Charge Coverage

3M Co., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Selected Financial Data (US$ in millions)
Net income attributable to 3M 4,570  5,349  4,858  5,050  4,833 
Add: Net income attributable to noncontrolling interest 12  14  11 
Add: Income tax expense 1,130  1,637  2,679  1,995  1,982 
Add: Interest expense 448  350  322  199  149 
Earnings before interest and tax (EBIT) 6,160  7,350  7,870  7,252  6,972 
Add: Operating lease cost 308  393  343  318  316 
Earnings before fixed charges and tax 6,468  7,743  8,213  7,570  7,288 
 
Interest expense 448  350  322  199  149 
Operating lease cost 308  393  343  318  316 
Fixed charges 756  743  665  517  465 
Solvency Ratio
Fixed charge coverage1 8.56 10.42 12.35 14.64 15.67
Benchmarks
Fixed Charge Coverage, Competitors2
General Electric Co. 1.09 -1.77 -0.30 2.07 2.74
Honeywell International Inc. 14.06 11.30 10.85 9.89 10.41
Fixed Charge Coverage, Sector
General Industrials 2.89 0.31 1.60 3.53 4.69
Fixed Charge Coverage, Industry
Industrials 4.72 4.21 4.74 5.03 6.36

Based on: 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), 10-K (filing date: 2016-02-11).

1 2019 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,468 ÷ 756 = 8.56

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 2017 to 2018 and from 2018 to 2019.