Evaluate Procter and Gamble's (P&G) performance and determine a valuation for the company. P&G's annual report (filed August 2020) can be downloaded from the SEC website. Please build your financial analysis based on the template we used for Assignment 1. (Below, completed)

1. Recent Financial Performance: conduct ratio analyses (including standard common-size financial statement analysis and various ratios) and identify trends.

Procter & Gamble Co Consolidated Statements of Earnings/Income Statement

For Assignment 1, please first fill in the numbers in NON-HILIGHTED cells, and then input formulas in the HILIGHTED cells.

$ in millions, except per share data

2018 2019 2020

Revenue 66,832 67,684 70,950

COGS (34,432) (34,768) (35,250)

SG&A (19,037) (19,084) (19,994)

Other - 8,345 -

Operating Income (EBIT) 13,363 22,177 15,706

Interest Expense, net (259) (289) (310)

Other Non-Operating Income (Expense) 222 871 438

Earnings from Continuing Operations 13,326 22,759 15,834

Less: Tax expense on Continuing Operations (3,465) (7,897) (2,723)

Net Income 9,861 14,862 13,111

Net earnings attributable to noncontrolling interest 111 69 76 Net Income Attributable to Parent 9,750 14,793 13,035 Total dividend (including preferred) 7,310 7,498 7,789 Payout Ratio 75.0% 50.7% 59.8% EBITDA 16,197 25,001 18,719 D&A 2,834 2,824 3,013 Effective Tax Rate 26% 34.70% 17.20%

Procter & Gamble Co Consolidated Balance Sheets

2019 2020 Cash $4,239 $16,181 Available-for-sale investment securities $6,048 $-

AR $ 4,951 $ 4,178 Inventory $ 5,017 $ 5,498

Other CA $ 2,218 $2,130 Current Assets $ 22,473 $27,987 PP&E $21,271 $ 20,692 Intangible Assets $64,488 $63,693

Other $6,863 $ 8,328 Total Assets $115,095 $120,700 AP $11,260 $12,071 Accruals $9,054 $9,722

Notes Payable $9,697 $11,183

Total Current Liabilities $30,011 $32,976

L-T Debt $20,395 $23,537

Other L-T Liabilities $17,110 $ 17,309

Total Liabilities $67,516 $73,822 Common Stock $ 67,836 $68,203 Treasury Stock $(100,406) $ (105,573) Retained Earnings $94,918 $100,239 Preferred Stock $928 $897

Other $(15,697) $ (16,888)

Total Equity $47,579 $46,878 Total Liability and Shareholder Equity $115,095 $120,700