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10-Year Financial Analysis of Procter and Gamble (NYSE:PG)

Here is a short 10-Year analysis of Procter and Gamble (NYSE:PG). The article gives investors an overview of the company’s financial history.

Company Profile:
Procter and Gamble (NYSE:PG) is the world's largest consumer goods company. It operates within the personal products industry and is home based in the USA. PG accounts operations in three business divisions: Beauty and Grooming (34 percent of sales and 43 percent of earnings), Health and Well-Being (19 percent of sales and 18 percent of earnings) as well as Household Care (47 percent of sales and 39 percent of earnings).

The company sold products in more than 180 countries and has operations in approximately 80 countries. As of December 31, 2010, 58 percent of sales came from abroad and 34 percent from developing markets.

Valuation of the Company:
Dividend Yield: 3.32 Percent
Payout Ratio: 59 Percent
5-Year Dividend Growth: 10.92 Percent

Market Capitalization: 177.200 billion
Cash and Short Term Investments: 3.249 billion
Long-Term Debt: 21.317 billion

Cash flow from Operations: 16.072 billion
CAPEX: 3.067 billion

Here is a 10-Year history sheet from the company in million USD:

(Click on the table to zoom)

Sales of PG doubled over the past decade. Earnings before taxes and interest (EBIT) rose by 225 percent and net income finally grew in total 274 percent. The strong growth of PG was mainly driven by a merger and acquisition strategy. As a result, goodwill increased to USD 55.7 billion and long-term debt rose to USD 21.3 billion at quartered Q2/2011.

The company has a strong track record in dividend payment history. It paid dividends since 1891 and increased dividends over 57 consecutive years. The next ex-dividend date is April 27, 2011. Payments will be received on May 16, 2011.

PG is the biggest player within the noncyclical consumer goods industry. Strongest rival with specification in medical and healthcare is Johnson and Johnson (NYSE:JNJ) who has a current dividend yield of 3.45 percent. Other competitors like Colgate Palmolive (NYSE:CL) yielding at 2.57 percent, Kimberly Clark (NYSE:KMB) at 4.25 percent and Clorox (NYSE:CLX) at 3.20 percent.

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Full Disclosure: Long PG, KMB, CL, JNJ

The presented data and material is for informational purposes only. Despite careful researches, we cannot guarantee for the truth of the figures. The past operational performance as well as the stock performance and dividend developments does not guarantee a positive future performance. Please, before you buy or sell any stocks, you should do your own research and reach your own conclusion.