Procter & Gamble Business Analysis

In: Business and Management

Submitted By soup
Words 1581
Pages 7
Business Analysis Part II
April 22, 2012

The financial heath of a company is detrimental to survival. While conducting research on Proctor and Gamble’s financial statements there were many interesting finds. In this paper I will examine P&G’s financial heath and how it compares to its competitors. I will also be discussing P&G’s technological advantages and how globalization has affected P&G’s business strategies. In closing I will conduct a benchmark analysis for the current industry.
P&G Financial Heath
Procter & Gamble is America’s premier maker of domestic products, with at least 250 brands in six main categories. ("Corporate watch," 2011) While researching P&G financial heath I found them to be in good shape in contrast to previous years in most areas. Some of P&G’s financial highlights include net sales of 82.6 billion in 2011. This is a 3.7 billion dollar increase in net sales from 2010. P&G’s current operating cash flow for 2011 is 13.2 billion and its diluted net earnings (per common share) is $3.92. ("Financial highlights," 2011).
According to Yahoo Finance, P&G announced that its board of directors has ratified a 7% hike to its regular quarterly dividend. This is the 56th uninterrupted year for which the company increased its quarterly dividend. (Equity Research, 2012) After comparing P&G to its two top competitors, Johnson & Johnson and Kimberly-Clark Corporation I discovered P&G’s power in this industry. P&G market cap is 183.55 billion while J&J market cap is 174.34 billion and KCC stands at 29.99 billion. (Nasdaq, 2012) Market capitalization represents the public consensus on the value of a company's equity and this is imperative to any company heath and future investors/stakeholders.

After reviewing P&G’s various financial statements I learned that the cost of materials and goods…...

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