P&G

i) Calculate the liquidity, leverage, turnover, profitability, and market value ratios for the most recent two years (check the fiscal year and month.). In total, you should calculate 20 (ratios) x 2 (years) = 40 ratios. Please also provide the formulas and the numbers you use to calculate each ratio in the appendix. ***Note*** To calculate market value ratios, you will need the number of shares outstanding for that year. On the income statements on Morningstar, you will see the number of weighted average shares outstanding in two versions, basic and diluted. Please use the basic shares. ii) Please provide sufficient interpretations of the ratios and explain their change (or no change) from the year before, in 2-3 paragraphs for all the ratios. If theres anything unusual or notable, please explain. Please be cautious about the signs on financial statement figures, especially on the income and cash flow statement. Some companies choose to report expense items as negative numbers because they get subtracted from the revenue to obtain the net income. When calculating the ratios, use your judgement to adjust their signs appropriately. iii) In the appendix, please show the formulas (with actual numbers used) for all 20 ratios for just one year. iv) After calculating all the ratios, please decompose the companys profitability over the two years using the Dupont analysis. Explain the composition of the profitability for your company. Has each component of Dupont increased or decreased from the previous year? How has that affected the companys overall profitability? Is there room for improvements? *Some financial ratios are already available on lots of sources including the actual 10K filings. For the purpose of learning, do not use those ratios. They may be different from what you calculate.