Question
& Gamble (PG) and Church & Dwight (CHD) are two iconic American consumer products companies with histories dating back to the mid-1800s and producing familiar
& Gamble (PG) and Church & Dwight (CHD) are two iconic American consumer products companies with histories dating back to the mid-1800s and producing familiar products such as Tide, Bounty, Crest, Arm and Hammer, OxiClean, and Waterpik. Both companies primarily sell their products to retailers such as grocery stores, drug stores, and other mass merchants In evaluating the two companies, it was determined that PG is approximately 15 times larger than CHD based on sales. A convenient way to analyze financial results when companies are of different sizes is through ratio analysis.
Obtain the financial statements of PG for the year ended June 30, 2021, and CHD for the year ended December 31, 2021, and compute the following ratios for both companies.
1. Gross profit % for 2021 and 2020
2. Income from operations (operating income) as a % of net sales for 2021 and 2020
3. Current ratio for 2021 and 2020.
4. Accounts receivable turnover for 2021
5. Inventory turnover for 2021
6.. P/E (price/earnings) ratio using the 2021 diluted EPS and the most current stock price of the company (attach a screenshot of current stock price which you can obtain from google finance or yahoo finance).
7. Which company would be a better investment? (Why? (A quick 2-3 sentences)
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