Procter And Gamble Financial Review
...3
c. International Exposure 4
2. Economic Indicators 4
a. GDP Growth 4
b. Household Income 4
c. Foreign Exchange Risk 4
3. Competition within Sector 4
B. Procter and Gamble: Company Analysis 6
1. Activities and Products 6
2. Strategic Position and Competition 7
3. Financial Analysis 8
a. Review of Business Segments 8
Health Care 8
Fabric and Home Care 8
Baby, Feminine and Family Care 8
Beauty Care 8
Food and Beverage 9
b. Operating Results of Procter and Gamble 9
Volume and Net Sales 9
Net Earnings 9
Operating Costs 9
c. Financial Performance 10
Profitability Analysis 10
Investment Utilization 11
Solvency and Short term Liquidity 13
Return on Equity: The Dupont Analysis 14
Z - Score for Bankruptcy 15
Growth Analysis 15
d. Comparative Financial Analysis 16
Industry Specific Analysis 17
Profitability 17
Asset Utilization 18
Liquidity 18
Solvency 19
e. Risk Analysis 20
Business Risk 20
Sales Variability 21
Operating Leverage 21
f. Valuation of Procter and Gamble 21
Dividend Discount Model 22
Economic Value Added 22
Earnings Multiplier Model 23
Technical Analysis 23
g. Investment Appraisal 25
h. Working Notes 26
Working Note 1 26
Working Note 2 26
Working Note 3 26
Working Note 4 26
Working Note 5 27
Working Note 6 27
Working Note 7 27
Working Note 8 28
Working Note 9 29
APPENDIX 30
References 34
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...
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