Procter and Gamble Presentation

8/3/2019 Procter and Gamble Presentation

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Procter andGamble

Financial Analysis

Presented by:

Cindy Tran

Yin Huang


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Company Profile

Was founded in 1837.

Headquartered in Cincinnati, Ohio

Owns and operates 39 manufacturing in23 states

Plus 103 manufacturing Facilities in 42other countries.


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Productions

Products:

Beauty.

HouseholdCare.

Health andWell-Being.

Over 250 different brands


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Competitors

Johnson and

Johnson

Kimberly Clark


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Liquidity Analysis

Liquidity Analysis P&G

Johnson &

Johnson

Kimberly

Clark

Net working capital ($5,323,000) $56,579,000 $990,000

Current ratio 0.81 2.51 1.12

Quick ratio 0.37 0.68 0.74

Cash ratio 0.1 0.42 0.16

Net working capital to total

assets ratio -0.04 0.55 0.16


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Solvency Analysis

Solvency

Analysis P&G

Johnson &

Johnson Kimberly Clark

Debt-to-equity

ratio 1.04 0.82 2.27

Debt-to-total

assets ratio 0.51 0.45 0.67


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Profitability Analysis

Profitability Analysis P&G

Johnson &

Johnson

Kimberly

Clark

Profit Margin 13.92% 17.69% 8.11%

Operating Margin 18.55% 25.42% 13.70%

Return on Assets 7.42% 10.08% 9.80%

Inventory Turnover 5.52 3.49 5.56

Return on Equity 17.00% 24.00% 31.00%

Total Asset Turnover 0.6 0.6 0.9

Earnings Per Share 3.93 4.18 4.19


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Common SizeStatements Comparison

P&G%

Johnson &

Johnson %

Kimberly

Clark %

Income

Statement

Sales $82,559,000 100.00% $61,587,000 100.00% $19,746,000 100.00%

COGS

$40,768,000 49.38% $18,792,000 30.51% $13,196,000 66.83%Gross Profit $41,791,000 50.62% $42,795,000 69.49% $6,550,000 33.17%

Taxes $3,392,000 4.11% $3,613,000 5.87% $788,000 3.99%

Net Income $11,797,000 14.29% $13,334,000 21.65% $1,843,000 9.33%

Balance Sheet

Total Assets $138,354,000 100.00% $102,908,000 100.00% $19,864,000 100.00%

Cash $2,768,000 2.00% $19,355,000 18.81% $876,000 4.41%

Inventory $7,379,000 5.33% $5,378,000 5.23% $2,373,000 11.95%

Receivables $7,415,000 5.36% $11,998,000 11.66% $2,877,000 14.48%

Investments --

-- $767,000 3.86%


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Change in Financials

P&G Current Year Prior Year % Change

Income Statement

Sales $82,559,000 $78,938,000 4.59%

Gross Profit$41,791,000 $41,019,000

1.88%

Operation Income or

Loss $15,818,000 $16,021,000-1.27%

Net Income $11,797,000 $12,736,000 -7.37%

Balance Sheet

Total Current Assets $21,970,000 $18,782,000 16.97%

Total Assets $138,354,000 $128,172,000 7.94%

Total Current Liabilities $27,293,000 $24,282,000 12.40%

Total Liabilities $70,714,000 $67,057,000 5.45%

Total Stockholder Equity $68,001,000 $61,439,000 10.68%


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P&G of the year 2011:

Profit rose 11% as sales increased

across all its segments.

Due to material cost and inflation,P&G was raising wholesale prices

on Pampers diapers and babywipes, Charmin toilet tissue and

Bounty paper towels.


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P&G stable outlook

P&G's well-

diversified :

Less than 40% of its sales fromNorth America, while 35%come from developing marketsin Asia and Latin America.

This helps cushion business oreconomic shocks from anyparticular region, which lendsit added stability.


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All of this has been reflected in thestock price, which remainedrelatively stable during the

economic downturn from 2007,

2008.

The forecast for fourth-quarterearnings of 80 cents to 85 cents a

share


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Conclusion

P&G frequently ranks among the most innovative andadmired companies in the U.S.

P&G products have been stable for over 170 years

backed by innovation, which shall help it maintain andeven grow its market share in the future as well.

P&G spent around $2 billion for R&D department forthe year 2010.

P&G bests its peers with a 14% cash-conversion ratio,

which captures the company's operational efficiencies.

This in turn helps P&G maintain a healthy dividendpayout ratio, which is around 48% of the cash itgenerates.


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Sources

Trefis http://www.dailyfinance.com/2011/05/12/why-pandg-

is-a-great-stock-to-hold-into-retirement/

http://galenet.galegroup.com.libproxy.utdallas.edu/ser vlet/BC

RC?rsic=PK&rcp=CO&vrsn=unknown&locID=txshracd2602&src

htp=cmp&cc=1&c=1&mode=c&ste=60&tab=1&tbst=tsCM&cc

mp=Procter+and+Gamble+Co.&tcp=procter+and+gamble&doc

Num=DC307096&bConts=3

MATTJARZEMSKY

http://online.wsj.com/article/SB100014240527487043304045

76290670603766358.html


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