3M Co (XSWX:MMM) Debt-to-EBITDA

: 2.21 (As of Dec. 2023)

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Debt-to-EBITDA measures a company's ability to pay off its debt.

3M Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was CHF2,743 Mil. 3M Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was CHF11,832 Mil. 3M Co's annualized EBITDA for the quarter that ended in Dec. 2023 was CHF6,600 Mil. 3M Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 2.21.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for 3M Co's Debt-to-EBITDA or its related term are showing as below:

XSWX:MMM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -2.49 Med: 1.58 Max: 2.77
Current: -2.49

During the past 13 years, the highest Debt-to-EBITDA Ratio of 3M Co was 2.77. The lowest was -2.49. And the median was 1.58.

XSWX:MMM's Debt-to-EBITDA is ranked worse than
100% of 408 companies
in the Conglomerates industry
Industry Median: 3.27 vs XSWX:MMM: -2.49

3M Co Debt-to-EBITDA Historical Data

The historical data trend for 3M Co's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

3M Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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2.77

2.14

1.91

1.94

-2.49

3M Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-EBITDA	Get a 7-Day Free Trial															3.60	2.37	-0.50	-2.08	2.21

Competitive Comparison

For the Conglomerates subindustry, 3M Co's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

3M Co Debt-to-EBITDA Distribution

For the Conglomerates industry and Industrials sector, 3M Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where 3M Co's Debt-to-EBITDA falls into.

3M Co Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

3M Co's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2743.146	+	11832.194)	/	-5845.183
	=	-2.49

3M Co's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(2743.146	+	11832.194)	/	6600.152
	=	2.21

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.

3M Co (XSWX:MMM) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

3M Co Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of 3M Co's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

3M Co (XSWX:MMM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » 3M Co (XSWX:MMM) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

MMM:USA MMM:Mexico 1MMM:Italy MMMd:UK MMM:Germany MMM:Chile MMMC34:Brazil MMM:Austria MMM:Argentina

Address

3M Center, St. Paul, MN, USA, 55144

Website

https://www.3m.com

3M is a multinational conglomerate that has operated since 1902, when it was known as Minnesota Mining and Manufacturing. The company is well known for its research and development laboratory and it leverages its science and technology across multiple product categories. As of 2020, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. Nearly 50% of the company's revenue comes from outside the Americas, with the safety and industrial segment constituting a plurality of net sales. Many of the company's 60,000-plus products touch and concern a variety of consumers and end markets.