Running head: LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 1
LTP Comprehensive Financial Analysis Paper
Doris Davis Jennifer Dobbs Douglas McCray Siena Heights University LDR 640 Financial Systems Management Prof. Lihua Dishman May 25, 2013 LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 2 Abstract From a humble beginning the Procter and Gamble Company was founded by two men who merely met by chance. What began as a small family soap business grew through the process of innovation, creativity, marketing and two men forming a partnership agreement to become the worlds largest consumers goods in the industry. As a result of this meeting by chance the company was born in October 31, 1837 by William Procter and James Gamble. The purpose of this descriptive study is to examine the financial performance of the Procter and Gamble Company and to assess its financial position and competitive ability as comparable to its competitors, Johnson and Johnson and Kimberly Clark, which are in the same industry. The financial ratios were used to analyze the performance of Procter and Gamble during a three-year period and to compare the company with two other competitors in the same industry. The trend and industry analysis were used in order to provide accurate results. The findings of this paper indicated that the debt ratio for the Procter and Gamble Company is the lowest among the two competitors in the industry. Also, the Procter and Gamble Company have the lowest current ratio in comparison to its competitors. The Procter and Gamble Company are similar to the two competitors in terms of times interest earned ratio. During the three year period the company had large growth in sales due to their cost of goods sold. The total assets turnover ratio of the Procter and Gamble Company decreased from 2012 through 2013. Recommendations and suggestions for improving the future financial performance of the Procter and Gamble Company will be discussed. Keywords: Procter & Gamble, Kimberly Clark, Johnson & Johnson, profitability ratios, financial ratios, industry analysis
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LTP Comprehensive Financial Analysis Paper The following sections will go into detail the financial ratios of Proctor and Gamble from the findings in there SEC filings in years 2011-2013. In addition there are comparisons to their two closest competitors Johnson and Johnson and Kimberly Clark. As we take a closer look at these ratios we are able to see how P&G is performing financially over the past three years and in comparison to the rest of the industry. Proctor and Gamble 2013 Financial Statements Tables below present balance sheet, income statement and statement of cash flows of our chose company - Proctor and Gamble. Table 1 P&G Balance Sheet 2013 (Amounts in millions $)
2013 2012 Assets CURRENT ASSETS Cash and cash equivalents $5,947 $4,436 Accounts receivable 6,508 6,068 INVENTORIES Materials and supplies 1,704 1,740 Work in process 722 685 Finished goods 4,483 4,296 Total inventories 6,909 6,721 Deferred income taxes 948 1,001 Prepaid expenses and other current assets 3,678 3,684 TOTAL CURRENT ASSETS 23,990 21,910 NET PROPERTY, PLANT AND EQUIPMENT 21,666 20,377 GOODWILL 55,188 53,773 TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET 31,572 30,988 LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 4 2013 2012 OTHER NONCURRENT ASSETS 6,847 5,196 TOTAL ASSETS 139,263 132,244
Liabilities and Shareholders' Equity CURRENT LIABILITIES Accounts payable 8,777 7,920 Accrued and other liabilities 8,828 8,289 Debt due within one year 12,432 8,698 TOTAL CURRENT LIABILITIES 30,037 24,907 LONG-TERM DEBT 19,111 21,080 DEFERRED INCOME TAXES 10,827 10,132 OTHER NONCURRENT LIABILITIES 10,579 12,090 TOTAL LIABILITIES 70,554 68,209 SHAREHOLDERS' EQUITY Convertible Class A preferred stock, stated value $1 per share (600 shares authorized) 1,137 1,195 Non-Voting Class B preferred stock, stated value $1 per share (200 shares authorized)
Common stock, stated value $1 per share (10,000 shares authorized; shares issued: 2013 - 4,009.2, 2012- 4,008.4) 4,009 4,008 Additional paid-in capital 63,538 63,181 Reserve for ESOP debt retirement (1,352) (1,357) Accumulated other comprehensive income (loss) (7,499) (9,333) Treasury stock, at cost (shares held: 2013 - 1,266.9, 2012 - 1,260.4) (71,966) (69,604) Retained earnings 80,197 75,349 Noncontrolling interest 645 596 TOTAL SHAREHOLDERS' EQUITY 68,709 64,035 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $139,263 $132,244
Table 2 Statement of Cash Flow (Amounts in millions $)
2013 2012 2011 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR $ 4,436 $ 2,768 $ 2,879 OPERATING ACTIVITIES LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 5
2013 2012 2011 Net earnings 11,402 10,904 11,927 Depreciation and amortization 2,982 3,204 2,838 Share-based compensation expense 346 377 414 Deferred income taxes (307) (65) 128 Gain on sale of businesses (916) (2,106) (203) Goodwill and indefinite-lived intangibles impairment charges 308 1,576 Change in accounts receivable (415) (427) (426) Change in inventories (225) 77 (501) Change in accounts payable, accrued and other liabilities 1,253 (22) 358 Change in other operating assets and liabilities 68 (444) (1,221) Other 377 210 16 TOTAL OPERATING ACTIVITIES 14,873 13,284 13,330 INVESTING ACTIVITIES Capital expenditures (4,008) (3,964) (3,306) Proceeds from asset sales 584 2,893 225 Acquisitions, net of cash acquired (1,145) (134) (474) Purchases of available-for-sale investment securities (1,605) Change in other investments (121) 112 73 TOTAL INVESTING ACTIVITIES (6,295) (1,093) (3,482) FINANCING ACTIVITIES Dividends to shareholders (6,519) (6,139) (5,767) Change in short-term debt 3,406 (3,412) 151 Additions to long-term debt 2,331 3,985 1,536 Reductions of long-term debt (3,752) (2,549) (206) Treasury stock purchases (5,986) (4,024) (7,039) Impact of stock options and other 3,449 1,729 1,203 TOTAL FINANCING ACTIVITIES (7,071) (10,410) (10,122) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 4 (113) 163 CHANGE IN CASH AND CASH EQUIVALENTS 1,511 1,668 (111) CASH AND CASH EQUIVALENTS, END OF YEAR $ 5,947 $ 4,436 $ 2,768
Table 3 P&G Income Statement 2013 (Amounts in millions $)
2013 2012 2011 NET SALES $ 84,167 $ 83,680 $ 81,104 Cost of products sold 42,428 42,391 39,859 Selling, general and administrative expense 26,950 26,421 25,750 Goodwill and indefinite lived intangibles impairment charges 308 1,576 OPERATING INCOME 14,481 13,292 15,495 Interest expense 667 769 831 Interest Income 87 77 62 Other non-operating income/(expense), net 942 185 271 EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 14,843 12,785 14,997 Income taxes on continuing operations 3,441 3,468 3,299 NET EARNINGS FROM CONTINUING OPERATIONS 11,402 9,317 11,698 NET EARNINGS FROM DISCONTINUED OPERATIONS 1,587 229 NET EARNINGS 11,402 10,904 11,927 Less: Net earnings attributable to noncontrolling interests 90 148 130 NET EARNINGS ATTRIBUTABLE TO PROCTER & GAMBLE 11,312 10,756 11,797 BASIC NET EARNINGS PER COMMON SHARE:
Earnings from continuing operations $ 4.04 $ 3.24 $ 4.04 Earnings from discontinued operations 0.58 0.08 BASIC NET EARNINGS PER COMMON SHARE 4.04 3.82 4.12 DILUTED NET EARNINGS PER COMMON SHARE:
Earnings from continuing operations $ 3.86 $ 3.12 $ 3.85 Earnings from discontinued operations 0.54 0.08 DILUTED NET EARNINGS PER COMMON SHARE 3.86 3.66 3.93 DIVIDENDS PER COMMON SHARE $ 2.29 $ 2.14 $ 1.97 LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 7
Financial Ratios In this section we selected the following ratios to discuss; current, quick, debt, debt to equity, times interest earned, inventory turnover, total asset turnover, return on sales, return on assets, return on equity, earnings per share and price to earnings ratios Liquidity ratios are examined to decipher a companys ability to pay off their short-term obligations. The higher this ratios is the greater the companys ability is to pay off its short term debts by selling off some of its assets and converting them to cash. The Liquidity ratios use the companys most liquid assets, its short term liabilities. A high ratio is looked at favorably because this indicates the company can pay off its short-term debt and fund ongoing operations. In contrast, a low ratios means the company may have a hard time funding operations and meeting other financial obligations. The current ratio looks what which amount of current assets is available to cover current liabilities. The short-term assets included in this ratio are cash, cash equivalents, marketable securities, receivables and inventory. The short-term liabilities considered in this ratio are notes payable, current portion of term debt, payables, accrued expenses and taxes. The quick ratio is different from the liquidity ratio in that it looks at only the most liquid assets and excludes the inventory and other current assets. The higher the quick ratio is the more liquid the company is. The quick ratio can be looked at in concert with the current ratio. If the current ratio is much higher than the quick ratio this shows that the company has much of its current assets in its inventory. Below are the 2013 calculation for P&G Liquidity Ratios: LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 8 (2103) Current ratio = Current assets Current liabilities= 23,990 30,037 = 0.80 (2103) Quick ratio = Total quick assets Current liabilities = 12,455 30,037 = 0.41 These liquidity ratios indicate that P&G could have a difficult time meeting its liabilities especially its short term liabilities give the low number of its quick ratio. These ratios also show that about half of P&Gs assets available to cover its liabilities are short term or quick assets. The difference could mean that P&G has much of its assets in the form of inventory, which is considered very liquid. Solvency ratios are used to measure how easily a company can cover its debt and other obligations. Knowing these ratios can indicate if a companys cash flow is sufficient to meet its' liabilities. The lower a company's solvency ratio, the greater the probability that it will default on its debt obligations. The Debt ratio measures the companys or consumers leverage. The higher this ratio, the more leveraged the company and the greater its financial risk. Debt ratios differ greatly from industry to industry so they should be compared with other companies in the same industry. If the debt ratio is larger than one this means that a company has more debt than assets and in contrast a debt ratio of less than one means it has more assets than debt. (Peavler, n.d.) The debt to equity ratio is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets. High debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. If a lot of debt is used to finance increased operations (high debt to equity), the company could potentially generate more earnings than it would have LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 9 without this outside financing. If this were to increase earnings by a greater amount than the debt cost (interest), then the shareholders benefit as more earnings are being spread among the same amount of shareholders. However, the cost of this debt financing may outweigh the return that the company generates on the debt through investment and business activities and become too much for the company to handle. This can lead to bankruptcy, which would leave shareholders with nothing. The Times Interest Earned Ratio is used to measure a company's ability to meet its debt obligations. The TIE indicates how many times a company can cover its interest charges on a pretax basis. A high ratio can indicate that a company has an undesirable lack of debt or is paying down too much debt with earnings that could be used for other projects. Below are the 2013 Solvency Ratios for P&G: (2103) Debt to capital = Total debt Total capital = 31,543 99,607 = 0.32 (2103) Debt to equity = Total debt Shareholders' equity attributable to parent = 70554/68709 = 1.03 (2103) Interest coverage = EBIT Interest expense = 15,510 667 = 23.25
P&G has a fairly low Debt to Capital Ratio. This means they are not financing their capital with a large amount of debt. They have a larger debt to equity ratio which indicates that the portion of assets provided by creditors is greater than the portion of assets provided by stockholders, and a majority of their equity is being financed by debt, because they also have a high interest coverage ratio, this means they can easily cover the interest they are paying on the debt they do have, and seem to be financially sound. Asset management (turnover) ratios compare the assets of a company to its sales revenue. Asset management ratios indicate how successfully a company is utilizing its assets to generate LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 10 revenues. Analysis of asset management ratios tells how efficiently and effectively a company is using its assets in the generation of revenues. They indicate the ability of a company to translate its assets into the sales. Asset management ratios are also known as asset turnover ratios and asset efficiency ratios. Asset management ratios are computed for different assets. Common examples of asset turnover ratios include fixed asset turnover, inventory turnover, accounts payable turnover ratio, accounts receivable turnover ratio, and cash conversion cycle. These ratios provide important insights into different financial areas of the company and its highlights its strengths and weaknesses. High asset turnover ratios are desirable because they mean that the company is utilizing its assets efficiently to produce sales. The higher the asset turnover ratios, the more sales the company is generating from its assets. (2013) Total Assets Turnover = Sales/Total Assets = 84.17/139.26 = .604 (2103) Inventory turnover = Cost of products sold Inventories = 42,428 6,909 = 6.14 P&G 2013 Asset Management Ratios show that they could be better at utilizing their assets to get better sales. However their inventory turnover ratio is fairly high so this means that the assets they have in inventory are moving quickly. P&G in 2013 was performing well in selling and managing their inventory and stated earlier much of their assets is in their inventory. Profitability ratios measure a companys ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of a company to generate earnings, profits and cash flows relative to relative to some metric, often the amount of money invested. They highlight how effectively the profitability of a company is being managed. (Financial Analysis and Accounting Book of Reference: Statement of Financial Position | IFRS Statements | IFRS Reports | ReadyRatios.com, n.d.) Different profitability ratios provide different useful insights LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 11 into the financial health and performance of a company. For example, gross profit and net profit ratios tell how well the company is managing its expenses. Return on capital employed (ROCE) tells how well the company is using capital employed to generate returns. Return on investment tells whether the company is generating enough profits for its shareholders. For most of these ratios, a higher value is desirable. A higher value means that the company is doing well and it is good at generating profits, revenues and cash flows. (2013) ROA = Net Income/Total Assets =11.31/139.26 = .082 (2013) ROS = Net Income / Sales = 11.31/84.17 = .1344 (2013) Total Assets Turnover = Sales/Total Assets = 84.17/139.26 = .604 The financial ratios for Proctor & Gamble do display fluctuations in some categories. The following information was obtained from P&G financial statements for the year 2013. The statements show there has been increase in all areas except in the area of Total Assets Turnover Ratio. Market value ratios evaluate the economic status of your company in the wider marketplace. Market value ratios include the earnings per share, price earnings ratio, the price/cash ratio, dividend yield, book value per share, market value per share, and the market/book ratio. Market value ratios give management an idea of what the firm's investors think of the firm's performance and future prospects. Market value ratios are pertinent to the publicly traded firm. If the rest of the company's ratios are good, then the market value ratios should reflect that and the stock price of the firm should be high. Market value ratios measure different ways of looking at the relative value of a company's stock. (Peavler, n.d.) LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 12 (2013) Return on Equity = Return on Net Assets (RONA) = EAT / Total equity = 1834/68709 = .02669 = 26.69% (2013) Earnings Per Share = EAT / Number of shares of common stock outstanding = 1834/5990.8 = .306 (2013) Price/Earnings Ratio = Price per share / Earnings per share = PPS / EPS= 1/.306 = 3.26797 Proctor and Gamble generated a 26% return for every $1 in shareholders stock in 2013. To be able to pay their common stocks outstanding it seems that they are able to set aside enough of their profit to pay the common stock outstanding on their shares, by using a little less than half of their earnings to pay this back, although their investors are seeing a high return on their investment. Proctor and Gamble has been holding financially stable for the last three physical years in regards to their liquidity ratios. This means that they have been able to meet their requirements for paying their debt. These ratios show P&G has a good balance of current debt and current liabilities and has kept this pretty consistent regardless of changing financial decisions and other Table 4
Proctor and Gamble 2011-2013 Financial Ratios Financial Ratios 2013 2012 2011 Current Ratio 0.80 0.88 0.80 Quick Ratio 0.51 0.61 0.53 Debt Ratio 0.32 0.52 0.51 Debt to Equity Ratio 1.03 1.07 1.03 Times Interest Earned Ratio 23.25 16.63 18.28 Inventory Turnover Ratio 6.14 6.31 5.52 Fixed Asset Turnover 60.44% 63.00% 59.00% Return on Sales Ratio 13.44% 10.90% 14.20% Return on Assets Ratio 8.12% 6.90% 85.30% Return on Equity Ratio 0.27 0.15 0.17 Earnings Per Share Ratio 0.31 1.55 1.95 Price to Earnings Ratio 3.27 0.64 0.51 LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 13 industry and marketing changes. From 2012 to 2013 the Total Assets Turnover Ratio experienced a decrease of 2.84%. In all other areas the company reported increases of at least .49% and as great as 7.02%. Proctor and Gamble has seen an increase in their return on equity which means shareholders are seeing a return on their shares, and this means that they are able to generate more profit with less capital. However, they are using less than half of their earnings to pay common stock outstanding, which has slowly decreased over the last three years. Their Price to Earnings ratio has increased which means that its investors are seeing a greater return than they did three years ago. Table 5 Peer Group Analysis of P&G, Johnson and Johnson and Kimberly Clark
P&G JJ KC Current Ratio 0.80 2.2 1.06 Quick Ratio 0.51 1.6 0.6 Debt Ratio 0.32 0.44 0.75 Debt to Equity Ratio 1.03 0.18 1.15 Times Interest Earned Ratio 23.25 33.1 11.29 Inventory Turnover Ratio 6.14 2.91 5.97 Fixed Asset Turnover 60.44% 53.71% 11.80% Return on Sales Ratio 13.44% 19.41% 10.20% Return on Assets Ratio 8.12% 10.42% 11.31% Return on Equity Ratio 0.2669 0.18677 0.392 Earnings Per Share Ratio 0.306 0.155 0.312 Price to Earnings Ratio 3.267 86.80 0.275 Ratios are derived from P&Gs, Kimberly Clark and Johnson and Johnsons 2013Financial Statements
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Figure 1
P&G has the lowest current ratio of its competitors in. In addition to it being the lowest Proctor and Gamble was actually below 1.0 which could indicate that they would have a difficult time meeting its debt obligations over the next twelve months. There current assets are not as great as their current liabilities. To further support the notion that P&G has a large number of current liabilities in comparison to its competitors it also has the lowest Quick Ratio. This means them more current liabilities then quick assets that could cover those short term financial obligations. P&G is in line with its competitors Times Interest Earned Ratios. This is calculated by taking earnings before interest and taxes (EBIT) and dividing it by the total interest payable on bonds and other contractual debt. This ratio shows that P&G is able to cover their interested payments to the debt holders and is using its earnings to cover projects that could yield a greater return by investing into projects instead of borrowing at higher rates. Amongst its competitors P&G is in line with their Debt to Equity ratios. P&G along with its competitors are financing a lot of its growth with debt. The debt ratio for P&G is the lowest amongst its competitors. This means that it may not be financing with as much debt as its competitors and they overall they are not 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 Peer Group Analysis P&G JJ KC LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 15 leveraged as much and have a lower risk. When we take this into consideration with their quick and current ratio we can now derive that while they have a lot of liabilities those may not all be related to debt, they could be accounts payable, or accrued liabilities. P&G has the highest turnover rate amongst its competitors. A high ratio implies either strong sales or ineffective buying. For P&G this likely indicates strong sales, because if we look at a trend of the COGS sold over the last three years we can see a steady increase. Johnson and Johnson, the nearest competitor of Proctor & Gamble has a reported greater income for the year 2013, however, Proctor & Gamble maintains greater numbers in areas of sales and total assets. Analytical Report Proctor and Gamble has been able to stay ahead of its competitors in competitive international and domestic market. Over the past three years P&G has been able to increase the profitability for its investors while making wiser investment choices, taking on less debt overall and increasing their capital. P&G has the lowest current ratio of its competitors in. P&G is in line with its competitors Times Interest Earned Ratios. Amongst its competitors P&G is in line with their Debt to Equity ratios. P&G along with its competitors are financing a lot of its growth with debt. The debt ratio for P&G is the lowest amongst its competitors. This means that it may not be financing with as much debt as its competitors and they overall they are not leveraged as much and have a lower risk. P&G has the highest turnover rate amongst its competitors. A high ratio implies either strong sales or ineffective buying. They have been able to out earn and out perform their competition in many areas. What P&G Can Do Differently Emphasis must be place on the recognized market segment. Then the market is identified by geography and the density of the population whether it is urban LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 16 or rural. Demographic factors such as age, income, gender, and psychographics factors like moral values, lifestyle choices are some things the company can and should focus on in the effort to do things differently and serve the customer better than the competition.
Recommendations Good companies are those that continue to increase their net income. Investors seek to invest in the companies that are effective at making money. In the effort to increase their profits Proctor & Gamble can: Maintain their pricing structure and not increase their prices. Offer customer rewards programs, offer free samples to their customer base and set up sales incentives. Know the customer and the customers buying patterns. Protect the product performance, availability, and the personality of the company and thereby maintain the momentum over the competition. Conclusion Proctor and Gamble is one of the strongest companies in its market. They has seen growth in the right areas such as investors and inventory and are leveraging their goods in ways that are helping them finance future investments. If Proctor and Gamble continues to invest and market in sectors where they can see a profit they can continue to grow even if some of their other products are no longer needed. They have a wide variety of products they offer, and have a strong enough financial base that continuing to invest smartly, turn our product quickly and earn a good return for investors they can continue to be successful for many years to come. LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 17 References EDGAR Search Results. (n.d.). Retrieved May 26, 2014, from https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000080424&type=10- k&dateb=&owner=exclude&count=40 Financial Analysis and Accounting Book of Reference: Statement of Financial Position | IFRS Statements | IFRS Reports | ReadyRatios.com. (n.d.). Ready Ratios. Retrieved May 11, 2014, from http://www.readyratios.com/reference/profitability/ Johnson & Johnson 2013 Annual Report. Retrieved May 23, 2014 from http://files.shareholder.com/downloads/JNJ/3182819775x0x733042/DDD2ABD5-2CC6-41D2- 8ACB-EC2A967727E4/ar2013_JNJ.pdf Johnson & Johnson 2012 Annual Report. Retrieved May 23, 2014 from http://files.shareholder.com/downloads/JNJ/3182819775x0x644760/85FD0CFF-2305-4A02- 8294-2E47D0F31850/JNJ2012annualreport.pdf Johnson & Johnson 2011 Annual Report. Retrieved May 23, 2014 from http://www.investor.jnj.com/2011annualreport/index.html Johnson & Johnson Annual Reports 2010 through 2013. Retrieved May 20, 2014 from http://www.marketwatch.com/investing/stock/JNJ/financials/balance-sheet Kimberly Clark 2013 Annual Report. Retrieved May 23, 2014 from http://www.cms.kimberlyclark.com/umbracoimages/UmbracoFileMedia/2013%20Annual%20R eport%20print-ready%20FINAL_20140220_umbracoFile.pdf Kimberly Clark 2012 Annual Report. Retrieved May 23, 2014 from http://www.cms.kimberlyclark.com/umbracoimages/UmbracoFileMedia/2012_AnnualReport_u mbracoFile.PDF LTP COMPREHENSIVE FINANCIAL ANALYSIS PAPER 18 Kimberly Clark 2011 Annual Report. Retrieved May 23, 2014 from http://www.cms.kimberlyclark.com/umbracoimages/UmbracoFileMedia/2011_AnnualReport_u mbracoFile.PDF Kimberly Clark Annual Reports 2010 through 2013. Retrieved May 20, 2014 from http://www.marketwatch.com/investing/stock/KMB/financials/balance-sheet Peavler, R. (n.d.). What are Market Value Ratios? - Price Earnings Ratio - market ratios. What are Market Value Ratios? Retrieved May 11, 2014, from http://bizfinance.about.com/od/financialratios/f/what-are-market-value-ratios-how-are-they- used.htm Proctor & Gamble 2013 Annual Report. Retrieved May 23, 2014 from http://www.pginvestor.com/Cache/1001180053.PDF?Y=&O=PDF&D=&fid=1001180053&T=&iid =4004124 Proctor & Gamble 2012 Annual Report. Retrieved May 23, 2014 from http://www.pginvestor.com/Cache/1001174630.PDF?Y=&O=PDF&D=&fid=1001174630&T=&iid =4004124 Proctor & Gamble 2011 Annual Report. Retrieved May 23, 2014 from http://www.snl.com/interactive/lookandfeel/4004124/PG_2011_AnnualReport.pdf Proctor & Gamble Annual Reports 2010 through 2013. Retrieved May 20, 2014 from http://www.marketwatch.com/investing/stock/PG/financials