Finance ratio paper

4.CapitalStructureAnalysisRatios.xlsx

Interest Coverage

3M Co., Interest Coverage
	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Selected Financial Data (USD $ in millions)
Net income attributable to 3M	4,858	5,050	4,833	4,956	4,659	4,444	4,283
Add: Net income attributable to noncontrolling interest	11	8	8	42	62	67	74
Add: Income tax expense	2,679	1,995	1,982	2,028	1,841	1,840	1,674
Add: Interest expense	322	199	149	142	145	171	186
Earnings before interest and tax (EBIT)	7,870	7,252	6,972	7,168	6,707	6,522	6,217
Ratio
Interest coverage	24.44	36.44	46.79	50.48	46.26	38.14	33.42
Interest coverage = EBIT ÷ Interest expense = 7,870 ÷ 322 = 24.44

3M Co., Debt to Capital
	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Selected Financial Data (USD $ in millions)
Short-term borrowings and current portion of long-term debt	1,853	972	2,044	106	1,683	1,085	682
Long-term debt, excluding current portion	12,096	10,678	8,753	6,705	4,326	4,916	4,484
Capital lease obligations	60	45	46	59	58	58	58
Total debt	14,009	11,695	10,843	6,870	6,067	6,059	5,224
Total 3M Company shareholders' equity	11,563	10,298	11,708	13,109	17,502	17,502	17,502
Total capital	25,572	21,993	22,551	19,979	23,569	23,561	22,726
Ratio
Debt to capital	0.55	0.53	0.48	0.34	0.26	0.26	0.23
Debt to capital = Total debt ÷ Total capital = 14,009 ÷ 25,572 = 0.55