Question

ind an annual report for a company of interest (perhaps your employer). Publicly held company annual reports (10K) can be located via Edgar Archives on the Security and Exchange website.

To perform the search in the Edgar Archives you can use either the company name or "ticker symbol" for the company. [View instructions on how to access the annual reports]

Click on the link to "Interactive Data" and then the link to the "Financial Statements". Locate and review the Income Statement and Balance Sheet. Title your post with the name of your company and share the following in your post:

1. What is the name of your company?
   
2. What is the web address that leads to your financial reports?
   
3. Why are you interested in this company?
   
4. Calculate the cash ratio.
   
5. What have you learned from this analysis?

Answer 1

3M Company

1. The name of the company is 3M Company. The Company’s ticker symbol is MMM

2. The web address that leads to 2018 10K financial reports are https://www.sec.gov/cgi-bin/viewer?action=view&cik=66740&accession_number=0001558370-19-000470&xbrl_type=v

3. I am interested in 3M company as it is great dividend growth company becoming a good investment (As per note 8, in 2017 they have declared dividend of $4.70 while in 2018 they have declared dividend of $5.44)

4. Cash ratio= (Cash and cash equivalents)/Current Liabilities (refer the balance sheet and note 11 marketable securities)

(cash + total marketable securities)/ current liabilities = (2853+380+37)/7244 = 0.4514

5. Cash ratio indicates the 3m company's ability to pay off its short term liabilities with highly liquid assets. Ratio higher than 1 indicates that the company is able to pay off its current liabilities with its cash and cash equivalents. From above analysis we learn that 3M company is able to only 45% of it current liabilities with its cash and cash equivalent. Ideally in industry the ratio between 0.5 to 1 is usually preferred.