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Analyzing 3M Company’s Debt And Risk

A company’s debt, liabilities and risk are very important factors in understanding the company. Having an understanding of a company’s debt and liabilities is a key component in understanding the risk of a company, thus aiding in the decision to invest, not to invest, or to stay invested in a company. There are many metrics involved in understanding the debt of a company, but for this article, I will look at 3M Company‘s (MMM) total debt, total liabilities, debt ratios

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3M Company (NYSE: MMM) Profitability Analysis

Earnings and Earnings Growth

1. Earnings = sales x profit margin

2010 – $26.662 billion x 15.32% = $4.085 billion 2011 – $29.611 billion x 14.46% = $4.283 billion

3M’s earnings increased from $4.085 billion in 2010 to $4.283 billion in 2011 or by 4.84%.

2. Earnings per share = net income / shares outstanding

2010 – $4.085 billion / 725.50 million = $5.63 2011 – $4.283 billion / 719.00 million = $5.96

3M Company’s earnings per share increased from

Continue reading 3M Company (NYSE: MMM) Profitability Analysis