Ratio Analysis and Statement of Cash Flow: The Proctor and Gamble Company

All company accounts are prepared in accordance with the various accounting laws and regulations, and are designed for a wide audience. Therefore, to obtain data for specific purposes it is frequently necessary to submit the numbers to specific analysis. Following is an analysis of The P&G Corporation's year 2004 and 2005 financial statements. This analysis is intended to, through the calculation of ratios; assess the short-term and long-term liquidity, in addition to the profitability of The P&G Corporation.
Short-term liquidity is the ability of the company to meet its sh…