3M Company — Earnings Quality Grade F
MMM · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 52 days, change +4 days YoY
AR growth 10.6% exceeds revenue growth 1.5%
Revenue 1.5%, CFFO 26.8%. Cash follows revenue
Expense Quality
Inventory -1.0% vs COGS 3.8%. Normal
CapEx growth -22.9% vs revenue 1.5%. Normal
SG&A/Gross Profit = 40.1%. Normal
Gross margin 39.9%, change -1.3pp. Stable
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF < 50% of Net Income for 2 years
Accruals ratio = 2.5%. Low accruals
Cash $5.9B covers only 47% of debt $12.6B
Balance Sheet Health
Goodwill+Intangibles $7.5B = 160% of equity. Over 50%
Debt/EBITDA = 1.9x. Healthy
Other assets -26.2% vs revenue 1.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.27 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-09