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3M Corporation management of its accounting and financial information

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  1. Introduction
  2. 3M Corporation management
  3. Accounting and financial information
  4. Analysis and description
  5. Conclusion

For any organization to achieve tremendous growth and maintain competitive advantage it has to effectively manage its financial and accounting information. 3M management policies, of its account remain envy of many cooperates, it's upon this concept that the paper seeks to identify the conglomerates performance.

In the avant-garde business environment, where uncertainties prevail ,business adopt policies and proactive measures ,that aim at promoting growth and development while at the same time ensuring profit .Profitable organizations, have a competitive advantage over others and greater opportunities for expansion. In this light 3M provides a good example of cooperate governance.

3M is a global technological company that has diversified in several businesses ventures such as industrial products ,healthcare, transportation ,security and protection services as well as electro and communication s. over the years the conglomerate has witnessed tremendous growth a fact established by her ability to hedge from economic uncertainties due to diversification in different ventures.

[...] This concept justifies that, 3M current assets surpass her liabilities and hence the company has, a strong financial base. The implication is that, she is able to meet current liabilities and debts, through her cash inflows from current assets, without bank financing. The working capital is calculated by comparing a company's working capital with the revenue collected .in essence revenue is divided by working capital. In 3M case the firm has a strong working capital which has been improving for the past three years. [...]

[...] Hence she is enjoying maximum profits and thus able to repay current liabilities using only current assets, since profits exceed capital injection. Acid-test ratio can be defined as the ratio that shows the difference between current assets and liabilities .it helps in assessing a company's ability to pay debts. In case of 3M, she has strong current assets base compared to liabilities and hence can pay debts As regards the company's inventory ratio, the company estimate, illustrates a strong inventory level. [...]

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