Financial Analysis of Procter and Gamble Company

Running head: MULTINATIONAL CORPORATE FINANCE
Corporate Finance
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2CORPORATE FINANCE
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Company Overview...............................................................................................................3
Ratio Analysis....................................................................................................................4
Economic Environments and Market Conditions..................................................................4
International Financial Markets.........................................................................................4
Effects of Global Credit Crisis...........................................................................................5
International Financial Market Operations........................................................................6
Impact of Exchange Rate...................................................................................................6
Impact of Global Financial Credit Crisis...........................................................................6
Risk Mitigation.......................................................................................................................7
Techniques to Hedge Foreign Exchange Exposure...........................................................7
Exchange Rate and Interest Rate........................................................................................7
Diversification....................................................................................................................7
Company Strategies...........................................................................................................8
Ethical and Legal Considerations...........................................................................................8
Ethical and Legal Management..........................................................................................8
Impact of Ethical and Legal Consideration on Internal Stakeholder’s..............................9
Impact of Ethical and Legal Consideration on External Stakeholder’s.............................9
Future Risks and Challenges..................................................................................................9
Financing Decisions...........................................................................................................9

3CORPORATE FINANCE
Ethical and Legal Consideration......................................................................................10
Risk Mitigation Strategies................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12
Appendix..................................................................................................................................14

4CORPORATE FINANCE
Introduction
The financial analysis of the Procter and Gamble Company is performed by analysing
the financial performance and the strategies used by the company for the various operational
activities of the company. The report highlights the various factors confronted by the business
of the company in the changing business and macro-economic conditions. Changing
monetary policies, the after impact on the credit after 2007-2008 financial crisis affecting the
financial ability and performance were some of the key aspects taken into consideration.
Discussion
Company Overview
The Procter and Gamble Company (P&G) the American Multinational Company
founded in the year 1837, specializes in a variety of health, consumers and hygiene products.
The health product portfolio includes the Beauty, Health Care, Fabric and Homecare products
(Annual Report, 2018). The product portfolio of the company is varied with a variety of
health and beauty products the company also has its products catered in the field of foods,
snacks and beverages. The company is also having a sound employee base of around 95,000,
which helps them conduct their daily operations smoothly. The management of the company
has been deploying various marketing and sales strategies to boost the sales of the company
but also to emphasis e and focus on the operational efficiency of the company. The increased
competition and the volatile business and macroeconomic factors are some of the key reason
for which the company believes in taking necessary steps in strategizing and improving the
operations of the company (P&G History 2019).
Ratio Analysis
The quantitative assessment tool ratio analysis was assessed for the purpose of the
evaluation of the financial statement of the company. The financial data for the company for