The business behind the dividend
| Measure | MMM | Median | Formula |
|---|---|---|---|
| Return on equity | 69.1% | 11.7% | Net income ÷ shareholders’ equity |
| Return on capital employed | 26.8% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $3.65bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $1.40bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 18.6% | 15.0% | Operating income ÷ revenue |
| Net margin | 13.0% | 10.2% | Net income ÷ revenue |
| Debt to equity | 2.68x | 0.79x | Total debt ÷ shareholders’ equity |
| Interest cover | 10.33x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 1.71x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 1.61x | 2.30x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 0.71x | 1.78x | Operating cash flow ÷ net income |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 69.1% | 108.6% | -145.5% | 39.2% | 39.4% | 42.3% | 44.9% | 54.6% | 42.0% | 49.0% | 42.3% |
| Return on capital employed | 26.8% | 28.6% | -56.1% | 14.2% | 22.7% | 22.6% | 20.3% | 29.5% | 30.2% | 32.0% | 22.7% |
| Operating margin | 18.6% | 19.6% | -43.4% | 16.7% | 20.8% | 22.3% | 19.2% | 22.0% | 24.3% | 23.3% | 19.6% |
| Net margin | 13.0% | 17.0% | -28.4% | 22.1% | 16.7% | 16.9% | 14.1% | 16.3% | 15.3% | 16.8% | 16.3% |
| Debt to equity | 2.68x | 3.40x | 2.96x | 1.08x | 1.15x | 1.46x | 2.02x | 1.49x | 1.21x | 1.13x | 1.46x |
| Current ratio | 1.71x | 1.41x | 1.07x | 1.54x | 1.70x | 1.89x | 1.41x | 1.89x | 1.86x | 1.89x | 1.70x |
| Cash conversion | 0.71x | 0.44x | — | 0.97x | 1.26x | 1.49x | 1.57x | 1.20x | 1.28x | 1.32x | 1.26x |
How it compares in health care
Among the 38 health care companies here measured on free cash flow, 3M pays out less than 1 of them. The median for that group is 39.3%, against this company’s 111.9%.
Closest on free cash flow
- Iradimed (IRMD) 87.5%
- Baxter International (BAX) 104.8%
- Pfizer (PFE) 107.7%
- Humana (HUM) 114.7%
Same sector and same denominator, so the figures are comparable. All 44 in health care →