Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.2 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.47 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 15.6% to $6.59 billion while assets rose 2.9% to $14.49 billion.
Analyst Ratings: There are eight out of 13 analysts surveyed (61.5%) rating 3M a buy.
This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 4.1% in the first quarter and 0.6% in the second quarter before increasing again in the third quarter.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 1.9% in the second quarter and dropped again in the third quarter.
Wall St. Revenue Expectations: Analysts predict a rise of 1.3% in revenue from the year-earlier quarter to $7.18 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)