3M Co (NYSE:MMM) Interest Coverage

: 10.34 (As of Mar. 2023)

View and export this data going back to 1946. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. 3M Co's Operating Income for the three months ended in Mar. 2023 was $1,272 Mil. 3M Co's Interest Expense for the three months ended in Mar. 2023 was $-123 Mil. 3M Co's interest coverage for the quarter that ended in Mar. 2023 was 10.34. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for 3M Co's Interest Coverage or its related term are showing as below:

MMM' s Interest Coverage Range Over the Past 10 Years
Min: 9.38 Med: 20.86 Max: 50.25
Current: 8.4

MMM's Interest Coverage is ranked better than
57.4% of 392 companies
in the Conglomerates industry
Industry Median: 6.07 vs MMM: 8.40

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

3M Co Interest Coverage Historical Data

The historical data trend for 3M Co's Interest Coverage 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

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Interest Coverage

19.24

13.52

13.05

15.71

9.38

3M Co Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Interest Coverage																15.12	0.86	13.51	10.01	10.34

Competitive Comparison

For the Conglomerates subindustry, 3M Co's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Annual Data Quarterly Data

3M Co Interest Coverage Distribution

For the Conglomerates industry and Industrials sector, 3M Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where 3M Co's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

3M Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

3M Co's Interest Coverage for the fiscal year that ended in Dec. 2022 is calculated as

Here, for the fiscal year that ended in Dec. 2022, 3M Co's Interest Expense was $-462 Mil. Its Operating Income was $4,334 Mil. And its Long-Term Debt & Capital Lease Obligation was $14,656 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2022 )	/	Interest Expense (A: Dec. 2022 )
	=	-1	*	4334	/	-462
	=	9.38

3M Co's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the three months ended in Mar. 2023, 3M Co's Interest Expense was $-123 Mil. Its Operating Income was $1,272 Mil. And its Long-Term Debt & Capital Lease Obligation was $13,575 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	1272	/	-123
	=	10.34

The higher the ratio, the stronger the company's Financial Strength is.

3M Co (NYSE:MMM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

3M Co Interest Coverage Related Terms

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

3M Co (NYSE:MMM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » 3M Co (NYSE:MMM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MMM:Mexico MMM:Germany MMM:Switzerland 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.

Executives

Suzan Kereere	director	255 FISERV DRIVE, BROOKFIELD WI 53045
Kevin H Rhodes	officer: EVP & Chief Legal Officer	3M COMPANY, 3M CENTER, BLDG 220-09-E-02, ST. PAUL MN 55144-1000
Peter D Gibbons	officer: Group President	2401 UTAH AVENUE SOUTH, SUITE 800, SEATTLE WA 98134
Chavez Rodriguez Beatriz Karina	officer: Senior Vice President	3M COMPANY, 3M CENTER BLDG 220-09-E-02, ST. PAUL MN 55144-1000
Mark W. Murphy	officer: Executive Vice President	ONE ST. JUDE MEDICAL DRIVE, ST. PAUL MN 55117
Zoe L Dickson	officer: Executive Vice President	3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
James R Fitterling	director	2211 H.H. DOW WAY, MIDLAND MI 48674
Jeffrey R Lavers	officer: Executive Vice President	3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Veena M Lakkundi	officer: Senior Vice President	3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Monish D Patolawala	officer: Senior VP and CFO	3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Vinita Lee Piper	other: IVM001	712 WILCREST, SUITE 3020, HOUSTON TX 77042
Pamela Craig	director	C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601
Ty R Silberhorn	officer: Senior Vice President	3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Theresa E Reinseth	officer: Vice President/CAO	3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Denise R Rutherford	officer: Senior Vice President	3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000