SELECT id, `name`, primary_key, `key`, treemapgroup, name_cn, zacks_table_name, compare_key, compare_display_name from gurufocu_main.financial_definition where termpagedisplay=1 and `key` = 'rank_balancesheet' 3M Co (MMM) Financial Strength
GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » 3M Co (NYSE:MMM) » Definitions » Financial Strength

3M Co (MMM) Financial Strength

: 4 (As of Dec. 2023)
View and export this data going back to 1946. Start your Free Trial

3M Co has the Financial Strength Rank of 4.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

3M Co's Interest Coverage for the quarter that ended in Dec. 2023 was 3.45. 3M Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.53. As of today, 3M Co's Altman Z-Score is 1.80.

Competitive Comparison

For the Conglomerates subindustry, 3M Co's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where 3M Co's Financial Strength falls into.


3M Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

3M Co's Interest Expense for the months ended in Dec. 2023 was $-371 Mil. Its Operating Income for the months ended in Dec. 2023 was $1,279 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $13,682 Mil.

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

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*1279/-371
=3.45

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

3M Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(3172 + 13682) / 32052
=0.53

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

3M Co has a Z-score of 1.80, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.8 is in distress zone. This implies bankruptcy possibility in the next two years.

* 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.

3M Co  (NYSE:MMM) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

3M Co has the Financial Strength Rank of 4.

3M Co Financial Strength Related Terms

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

3M Co (MMM) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » 3M Co (NYSE:MMM) » Definitions » Financial Strength
Comparable Companies
MDU VMI GFF SEB CODI MATW SPLP FIP TRC NNBR ADX:IHC HON TSE:8058 TSE:6501 TSE:8031 TSE:8001 ADX:ALPHADHABI TSE:8053 TSE:8002 HKSE:00267
Traded in Other Exchanges
MMM:Mexico 1MMM:Italy MMMd:UK MMM:Germany MMM:Germany MMM:Germany MMM:Germany MMM:Chile 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
Thomas W Sweet director ONE DELL WAY, ROUND ROCK TX 78682
Bryan C Hanson officer: Group Pres & CEO Health Care ZIMMER BIOMET HOLDINGS, 345 E. MAIN STREET, WARSAW IN 46580
Audrey Choi director 3M COMPANY, 3M CENTER, BUILDING 220-9E-02, ST. PAUL MN 55144-1000
Eric D. Hammes officer: VP, Corp Controller & CAO 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST. PAUL MN 55144-1000
Goralski Christian T Jr officer: Group President 3M COMPANY, 3M CENTER, BUILDING 220-9E-02, ST. PAUL MN 55144-1000
Pedro Pizarro director 2244 WALNUT GROVE AVENUE, ROSEMEAD CA 91770
Anne H Chow director 2200 WEST PARKWAY BLVD., SALT LAKE CITY UT 84119
Kevin H Rhodes officer: EVP & Chief Legal Officer 3M COMPANY, 3M CENTER, BLDG 220-09-E-02, ST. PAUL MN 55144-1000
Chavez Rodriguez Beatriz Karina officer: Senior Vice President 3M COMPANY, 3M CENTER BLDG 220-09-E-02, ST. PAUL MN 55144-1000
John Patrick Banovetz officer: Sr Vice President 3M CENTER, MAPLEWOOD MN 55144
Zoe L Dickson officer: Executive Vice President 3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Michael G. Vale officer: Executive Vice President 3M CENTER OFFICE OF GENERAL COUNSEL, ST PAUL MN 551441000
Theresa E Reinseth officer: Vice President/CAO 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Mojdeh Poul officer: Executive Vice President 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST PAUL MN 55144-1000
Michael F Roman officer: Senior Vice President 3M COMPANY OFFICE OF GENERAL COUNSEL, 3M CENTER, ST. PAUL MN 55144-1000