Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
3M Co., liquidity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.70 | 1.89 | 1.41 | 1.89 | 1.86 | |
| Quick ratio | 1.04 | 1.23 | 0.79 | 1.14 | 1.18 | |
| Cash ratio | 0.53 | 0.63 | 0.27 | 0.45 | 0.54 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | 3M Co. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | 3M Co. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | 3M Co. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Current Ratio
3M Co., current ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 15,403) | 14,982) | 12,971) | 13,709) | 14,277) | |
| Current liabilities | 9,035) | 7,948) | 9,222) | 7,244) | 7,687) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.70 | 1.89 | 1.41 | 1.89 | 1.86 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Boeing Co. | 1.33 | 1.39 | 1.05 | — | — | |
| Caterpillar Inc. | 1.46 | 1.53 | 1.47 | — | — | |
| Eaton Corp. plc | 1.04 | 1.56 | 1.70 | — | — | |
| GE Aerospace | 1.28 | 1.58 | 1.16 | — | — | |
| Honeywell International Inc. | 1.30 | 1.47 | 1.34 | — | — | |
| Lockheed Martin Corp. | 1.42 | 1.39 | 1.22 | — | — | |
| RTX Corp. | 1.19 | 1.21 | 1.08 | — | — | |
| Current Ratio, Sector | ||||||
| Capital Goods | 1.31 | 1.43 | 1.17 | — | — | |
| Current Ratio, Industry | ||||||
| Industrials | 1.30 | 1.42 | 1.19 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 15,403 ÷ 9,035 = 1.70
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | 3M Co. current ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Quick Ratio
3M Co., quick ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 4,564) | 4,634) | 2,353) | 2,853) | 3,053) | |
| Marketable securities, current | 201) | 404) | 98) | 380) | 1,076) | |
| Accounts receivable, net of allowances | 4,660) | 4,705) | 4,791) | 5,020) | 4,911) | |
| Total quick assets | 9,425) | 9,743) | 7,242) | 8,253) | 9,040) | |
| Current liabilities | 9,035) | 7,948) | 9,222) | 7,244) | 7,687) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.04 | 1.23 | 0.79 | 1.14 | 1.18 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Boeing Co. | 0.34 | 0.41 | 0.23 | — | — | |
| Caterpillar Inc. | 0.89 | 1.02 | 0.98 | — | — | |
| Eaton Corp. plc | 0.54 | 0.68 | 0.78 | — | — | |
| GE Aerospace | 0.93 | 1.27 | 0.86 | — | — | |
| Honeywell International Inc. | 0.94 | 1.15 | 0.99 | — | — | |
| Lockheed Martin Corp. | 1.15 | 1.05 | 0.93 | — | — | |
| RTX Corp. | 0.81 | 0.78 | 0.73 | — | — | |
| Quick Ratio, Sector | ||||||
| Capital Goods | 0.71 | 0.83 | 0.64 | — | — | |
| Quick Ratio, Industry | ||||||
| Industrials | 0.78 | 0.87 | 0.71 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 9,425 ÷ 9,035 = 1.04
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | 3M Co. quick ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Cash Ratio
3M Co., cash ratio calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 4,564) | 4,634) | 2,353) | 2,853) | 3,053) | |
| Marketable securities, current | 201) | 404) | 98) | 380) | 1,076) | |
| Total cash assets | 4,765) | 5,038) | 2,451) | 3,233) | 4,129) | |
| Current liabilities | 9,035) | 7,948) | 9,222) | 7,244) | 7,687) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.53 | 0.63 | 0.27 | 0.45 | 0.54 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Boeing Co. | 0.20 | 0.29 | 0.10 | — | — | |
| Caterpillar Inc. | 0.31 | 0.36 | 0.31 | — | — | |
| Eaton Corp. plc | 0.08 | 0.19 | 0.12 | — | — | |
| GE Aerospace | 0.54 | 0.78 | 0.60 | — | — | |
| Honeywell International Inc. | 0.59 | 0.79 | 0.58 | — | — | |
| Lockheed Martin Corp. | 0.26 | 0.23 | 0.11 | — | — | |
| RTX Corp. | 0.22 | 0.25 | 0.21 | — | — | |
| Cash Ratio, Sector | ||||||
| Capital Goods | 0.32 | 0.44 | 0.31 | — | — | |
| Cash Ratio, Industry | ||||||
| Industrials | 0.35 | 0.45 | 0.34 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,765 ÷ 9,035 = 0.53
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | 3M Co. cash ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |