Financial statement analysis and common stock valuation

Price to FCFE (P/FCFE)

Free cash flow to equity is the cash flow available to Procter & Gamble Co. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to Equity (FCFE)
• P to FCFE Ratio, Current
• P to FCFE Ratio, Historical

Analysis of Solvency Ratios
Quarterly Data

Examines Procter & Gamble Co. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Capital
• Debt to Assets
• Financial Leverage
• Interest Coverage

Income Statement

The income statement (statement of earnings) reports on the performance of Procter & Gamble Co., the result of its operating activities.

Enterprise Value (EV)

Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.

• Current EV
• Historical EV

Analysis of Short-term (Operating) Activity Ratios

Evaluates revenues and output generated by the Procter & Gamble Co. assets. Operating performance ratios describe the relationship between the Procter & Gamble Co. level of operations and the assets needed to sustain operating activities.

• Short-term Activity Ratios (Summary)
• Inventory Turnover
• Receivables Turnover
• Payables Turnover
• Working Capital Turnover
• Average Inventory Processing Period
• Average Receivable Collection Period
• Operating Cycle
• Average Payables Payment Period
• Cash Conversion Cycle

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Analysis of Geographic Areas

Procter & Gamble Co. operates in 2 regions: United States and International.

• Area Asset Turnover
• Net sales
• Long-lived assets

Analysis of Liquidity Ratios

Measures the adequacy of Procter & Gamble Co. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Balance Sheet: Liabilities and Stockholders’ Equity

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a Procter & Gamble Co. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Cash Flow Statement

The cash flow statement provides information about Procter & Gamble Co. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Procter & Gamble Co. balance sheet.

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by Procter & Gamble Co..