Procter And Gamble Financial Analysis

Financial statement measures the financial performance, liquidity and strength of the firm, it is important

Ratio analysis is a tool brought by individuals used to evaluate analysis of information in the financial statements of a business. The ratio analysis forms an essential part of the financial analysis which is a vital part in the business planning. There are 3 different ways of assessing businesses performance and these are: solvency, profitability and performance. Ratio analysis assists managers to work out the production of the company by figuring the profitability ratios. Also, the management can evaluate their revenues to check if their productivity. Thus, probability ratios are helpful to the company in evaluating its performance based on current earning. By measuring the solvency ratio, the companies are able to keep an

1. What is the purpose of financial statement analysis? The purpose of financial statement analysis is to provide information used by the business, potential creditors and investors.

There is a essential use and limitations of financial ratio analysis, One must keep in mind the following issues when using financial ratios: One of the most important reasons for using financial ratio analysis is comparability and for this, a reference point is required. Usually, financial ratios are compared to historical ratios of the business itself, competitor’s financial ratios or the overall ratios of the industry in question. Performance may be adjudged as against organizational goals or forecasts. A number of ratios must be analyzed together to get a true and reliable picture of the financial performance of the business. Relying on each ratio

Financial statements are used to determine the business activities of a firm and the role of accounting analysis is to determine the accuracy and quality of the information provided. This analysis would look into the degree of its accounting figures captures its business reality through the policies used and its resulting noise, potential forecast errors and its impact on Myer’s profit.

Before beginning an analysis of a company it is necessary to have a complete set of financial statements, preferably for the pas few years so that historical trends can be obtained. Ratios are a way for anyone to get an idea of the financial performance of a company by using the information contained in the financial statements. Ratios are grouped into four basic categories, liquidity, activity, profitability, and financial leverage. This document will use a variety of these ratios to analyze the firm, Sample Company, as of December 31,2000.

The paper illustrates that financial ratio analysis is an important tool for firm’s to evaluate their financial health in order to identify areas of weakness so as to institute corrective measures.

Financial statement analysis helps managers to better understand the financial health of their companies. Managers compute and interpret financial ratios for asset management purposes, debt management purposes, to assess profitability and to assess their market performance versus other companies.

Ratio analysis is the fundamental indicator of company’s performances for so many years; it is also can be seen as the very first step to measure a company’s performance along with its financial position. Moreover, ratio analysis has been researched and developed for many years, Bliss had presented the first coherent system of ratios, and he also stated that ratios are “indicator of the status of fundamental relationship within the business” Horrigan (1968). However there are some arguments on whether the ratio analysis is useful or not since to conduct these analyses will be costly to the company, also there are several limitations on how these ratios work. Therefore, the usefulness and the limitation of ratio analysis will be discussed further in this essay, with the use of easyJet’s annual report as examples.

Procter and Gamble (P & G) is one of the renowned and well-known firms in the world and specifically America and it was originated in 1837.This firm was founded by William Procter and James Gamble. In the beginning, they used to manufacture only soap and candles but as the time passed their growth in business was the remarkable effort. Procter and Gamble has become one of the biggest consumer goods company in the world. Their products are sold in over 180 countries, which include several products like shampoos, hair care, cosmetics, beauty care products, food, beverages, and personal cleaning supplies. The issue has arisen that as per the results a need of a new strategy is necessary to sustain the competitive advantage over several other business threats.

Proctor & Gamble continue a lagging trend approach to continued long term success. This company holds on to one of the most diversified portfolios in their industry. They boast a product line that exceeds 250 different items. This company that has survived since the 1830 's has walked through every historical financial calamity that the United States has suffered in the last 150 years. They have suffered some instability at the leadership level but have managed to remain competitive. There is

Subsequently, the ratios of both companies will be thoroughly analyzed. This analysis will enable the reader to have a clear understanding of the financial position of both companies. Moreover, factors that have influence their instable performance will also be studied. Finally, the work will be concluded and recommendations will be given.

have explained that the Financial statements provide asummarized view of the financial position and operations of a firm. Therefore, much can belearnt about a firm from a careful examination of its financial statements as invaluabledocuments / performance reports. The analysis of financial statements is, thus, an important aidto financial analysis.

The basis of the project was to conduct a financial analysis of the company’s balance sheet and profit and loss statement through a ratio analysis. This would determine the financial

Procter & Gamble (P&G) serves individuals around the world with the most influential collections of entrusted, superiority, leadership brands. To recognize the value of P&G corporate philanthropy movement, you need to recognize its opportunities. Procter and Gamble's philanthropy is not limited to financial donations made by corporation and employees. The P&G supports projects to benefit the global communities in which the company operates with operations in over 90 countries, serves nearly 5 billion consumers around the globally with its brands, services, and sales in over 150 nations.