Proctor and Gamble: More Than Just a Paper Products

Proctor and Gamble: More than Just a Paper Products

Derrick Mike

Westwood College

BUS501-WCO-V2D1: Quantitative Business Analysis

June 22, 2013

There are many companies that interest me, most of which I use their products daily or at the least monthly. In spite of how much of a company’s products I use, there are some companies which interest me more than others. Wal-Mart is one of my favorite companies, but there are certain products which are sold at Wal-Mart that I like, and the products that I use most and purchase is the products made and distributed by Proctor and Gamble. I have always been a big fan of Proctor and Gamble products, more especially when I moved to Albany, Georgia and found there is a Proctor and Gamble plant located here. This plant not only is an added employer of the area, but also a major contributor to the economy of Albany and surrounding counties. Since I am an avid fan of Proctor and Gamble and their products, I decided to look at their 2012Annual Report to gain a better insight of some pertinent information. Proctor and Gamble has $132,244 million current net assets for the 2012 ending fiscal year in, as compared to $138,354 last fiscal year, but their total plant assets are only $40,233 million for the 2012 fiscal year end compared to $41,507 million last fiscal year. The total accumulated depreciation they incurred was $19,856 million for the 2012 fiscal year end in comparison to their total accumulated depreciation of $20,214 million reported for their last year’s fiscal year, which means that Proctor and Gamble incurred a total of $358 million in total depreciation for the fiscal year. The method of depreciation used by Procter & Gamble to depreciate its PP&E, as indicated on the financial statements is the straight-line method. Depreciation expense is recognized over the assets’ estimated useful life. (Property, Plant and Equipment; McDonald 2012). The straight-line method is the most simplistic form of...