- Show more
Name: Instructor: School: Date: 3M Company Financial Analysis In undertaking a study of a company, it becomes necessary to have a financial analysis. Such an analysis is essential because it offers the right ground to determine the standing point of the group in as far as finances are concerned. In this paper, there is a financial analysis of the 3M Company. In the analysis, there is much delving on the assets and liabilities of the company. Assets represent the positive aspect of the finances of the enterprise while liabilities tilt to the downside as there is a cash flow outside firm. There is the utilization of peer-reviewed articles on 3M Company in a bid to get much insight into the financial stands. In an attempt to understand the position of the 3M Company in matters of finance, it is essential to consider key aspects of the cash flow. In the last quarter, there has been an operating income margin of 24.7 %. This figure presents a 0.4 percentage up the previous year. It is essential to note that the margins get the contribution from each of the different business groups in the 3M company, with each posting not less than 22% margin. These margins emanate from the increasing cash flow. There has been a cash flow increase of 19%. When there is an increase in the free cash flow, there is bound to be a long term positive outcome of finances or simply, high profitability in the future, (Diakantonis, 25). However, this view is by other factors being held constant. The increase in the free cash flow has led to the attainment of 1.9 billion US $.There is also a 1.4 billion US $return to the shareholders through dividends as well as the Gross share purchases.