Procter and Gamble Financial Review
Essay title: Procter and Gamble Financial Review
TABLE OF CONTENTS
Industry and Sector Overview
External Analysis
Technology
Demographic
International Exposure
Economic Indicators
GDP Growth
Household Income
Foreign Exchange Risk
Competition within Sector
Procter and Gamble: Company Analysis
Activities and Products
Strategic Position and Competition
Financial Analysis
Review of Business Segments
Health Care
Fabric and Home Care
Baby, Feminine and Family Care
Beauty Care
Food and Beverage
Operating Results of Procter and Gamble
Volume and Net Sales
Net Earnings
Operating Costs
Financial Performance
Profitability Analysis
Investment Utilization
Solvency and Short term Liquidity
Return on Equity: The Dupont Analysis
Z – Score for Bankruptcy
Growth Analysis
Comparative Financial Analysis
Industry Specific Analysis
Profitability
Asset Utilization
Liquidity
Solvency
Risk Analysis
Business Risk
Sales Variability
Operating Leverage
Valuation of Procter and Gamble
Dividend Discount Model
Economic Value Added
Earnings Multiplier Model
Technical Analysis
Investment Appraisal
Working Notes
Working Note 1
Working Note 2
Working Note 3
Working Note 4
Working Note 5
Working Note 6
Working Note 7
Working Note 8
Working Note 9
APPENDIX
References
The Procter and Gamble was incorporated as a family owned partnership business by William Procter and James Gamble in 1837 with a paid up capital of USD 7,192. This was the period when American economy was in financial panic. There was a fear of civil war and a widespread concern that the United States was bankrupt. However, despite of this era of financial distress the forward looking and aggressive policies of the owners helped company to achieve the sales of one million just in twenty second year of its existence. This forward looking and aggressive approach of company since its inception has made it a leader in consumer products.
Today Procter and Gamble is a public limited company and is listed on New York Stock Exchange. It manufactures and markets more than 250 products to more than five billion consumers in 130 countries throughout the world. The company has diversified its operations from family care products to food and beverages. It emphasize on continuous development of its product line with intensive capitalization for research and development. The company’s human resources