The 2015 annual report of The Procter & Gamble Company (P&G) is available at www.pginvestor.com. After reviewing P&G’s annual report, respond to the following questions:

a. Prepare common-size income statements for the period 2013 through 2015. What major trends can you identify from this data?

b. Prepare common-size balance sheets for 2014 and 2015. What major trends can you identify from this data?

c. Calculate the following ratios for P&G for 2014 and 2015:

1. Return on shareholders’ equity 

2. Return on assets (levered)

3. Return on sales (levered)

4. Gross profit margin ratio 

5. Receivable turnover 

6. Receivable collection period 

7. Inventory turnover 

8. Inventory-on-hand period 

9. Asset turnover 

10. Quick ratio 

11. Current ratio 

12. Long-term debt to total assets 

13. Interest coverage ratio 

14. Financial leverage 

What major trends can you identify from this data?

d. Develop an overall assessment of the financial performance of P&G for the period 2013 through 2015.