3M Co (NYSE:MMM) Altman Z-Score

: 3.86 (As of Today)

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Good Sign:

Altman Z-score of 3.86 is strong.

3M Co has a Altman Z-Score of 3.86, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for 3M Co's Altman Z-Score or its related term are showing as below:

MMM' s Altman Z-Score Range Over the Past 10 Years
Min: 3.86 Med: 5.47 Max: 7.13
Current: 3.86

During the past 13 years, 3M Co's highest Altman Z-Score was 7.13. The lowest was 3.86. And the median was 5.47.

3M Co Altman Z-Score Historical Data

The historical data trend for 3M Co's Altman Z-Score 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

Altman Z-Score

5.81

4.35

4.43

4.72

4.05

3M Co Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
Altman Z-Score																4.72	4.49	4.06	4.06	4.05

Competitive Comparison

For the Conglomerates subindustry, 3M Co's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

For the Conglomerates industry and Industrials sector, 3M Co's Altman Z-Score distribution charts can be found below:

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

3M Co Altman Z-Score Calculation

Altman 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.

3M Co's Altman Z-Score for today is calculated with this formula:

1.2

1.4

3.3

0.6

1.0

1.2

0.1112

1.4

1.0322

3.3

0.1475

0.6

1.7603

1.0

0.7368

3.86

Trailing Twelve Months (TTM) ended in Dec. 2022:
Total Assets was $46,455 Mil.
Total Current Assets was $14,688 Mil.
Total Current Liabilities was $9,523 Mil.
Retained Earnings was $47,950 Mil.
Pre-Tax Income was 597 + 4132 + 60 + 1603 = $6,392 Mil.
Interest Expense was -115 + -106 + -128 + -113 = $-462 Mil.
Revenue was 8079 + 8619 + 8702 + 8829 = $34,229 Mil.
Market Cap (Today) was $55,776 Mil.
Total Liabilities was $31,685 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1	=	Working Capital	/	Total Assets
	=	(Total Current Assets - Total Current Liabilities)	/	Total Assets
	=	(14688 - 9523)	/	46455
	=	0.1112

X2	=	Retained Earnings	/	Total Assets
	=	47950	/	46455
	=	1.0322

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(6392 - -462)	/	46455
	=	0.1475

X4	=	Market Value Equity	/	Book Value of Total Liabilities
	=	Market Cap	/	Total Liabilities
	=	55775.562	/	31685
	=	1.7603

X5	=	Revenue	/	Total Assets
	=	34229	/	46455
	=	0.7368

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

3M Co has a Altman Z-Score of 3.86 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.

3M Co (NYSE:MMM) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Be Aware

Altman Z-Score does not apply to financial companies.

3M Co Altman Z-Score Related Terms

Thank you for viewing the detailed overview of 3M Co's Altman Z-Score 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 » Altman Z-Score

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