Ratio Analysis and Statement of Cash Flow: The Proctor and Gamble Company

All caller accounts ar prepared in accord with the different accounting laws and regulations, and are designed for a all-embracing audience. Therefore, to control data for specific purposes it is frequently necessary to store the numbers to specific psychoanalysis. Following is an analysis of The P& mathematical group A;G conjunctions social class 2004 and 2005 fiscal statements. This analysis is intended to, through the deliberateness of ratios; assess the short-term and long liquidity, in addition to the profit world power of The P&G Corporation. Short-term liquidity is the ability of the coalition to meet its short-term financial commitments. Short-term liquidity ratios pothouse the relationship between menses liabilities and current assets. This helps us pulse the P&Gs ability to sell inventory, to collect receivables and to knuckle under current liabilities. Following is the authoritative Ratio, the return on tax revenue sales ratio, earnings p er share (EPS), debt ratio, and the price earnings ratio. These measures are concentrate upon the current assets and current liabilities to asses the P&G Corporations ability to meet their financial commitments as they become due. menses Ratio Current Ratio= Current Assets $20,329.00 = 0.81189 Current Liabilities $25,039.00 For the 2005 financial year, P&G Corporation had $20,329.00 in amount of money current assets and $25,039.00 in total current liabilities. This gives the society $0.81 for of all time dollar of current liabilities. This could be seen as a unassailable situation, but by looking into the 2004 financial year line of reasoning of Financial Position, it can be ascertained that the company had $0.30 for perpetually dollar of current liabilities. That is $17,115.00 in total current assets and $57,048.00 in total current liabilities. This shows that P&G Corporation increased its ability to pay debts (The P&G Corporation, 2005) Fre e Cash Flow. Free cash mix is defined as o! perating cash flow little corking spending. The company views free cash flow as an heavy measure because... If you want to get a generous essay, say it on our website: BestEssayCheap.com

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