What can the DuPont analysis and other financial information tell us about the company’s marketing and operations?

This case compares two similar but very different companies (all financials have been placed in Google Sheets here). P&G is often thought of as one of the great consumer product companies in the world. Colgate, relatively speaking, flies under the radar and is not as well known or respected. The case presents the history of the two companies and the recent issues at P&G. Be sure to address the following points in your write-up of the case:

Perform a DuPont analysis of P&G and Colgate from 2008 through 2012. Include sustainable growth (for the retention ratio, you can use (1 – payout-ratio), where the payout-ratio can be calculated as dividends-per-share/basic-earnings-per-share). For 2012 only, calculate each companies’ P/E and M/B (for P&G, assume a year-end stock price of $67.89). Assume that Net Income equals ‘net earnings attributable’ or ‘net income attributable.’
Evaluate the overall financial performance of the two companies. Which company is doing better? Are there interesting trends happening over this time period?
What can the DuPont analysis and other financial information tell us about the company’s marketing and operations? (the Note on the DuPont Analysis provides some guidance; use of outside resources is unnecessary). What do you think about Cook’s leadership at Colgate or Lafley’s and McDonald’s at P&G?
OPTIONAL (to increase your chance of receiving 4’s): Draw meaningful insights from a common size analysis of the companies and from a DuPont analysis of the companies’ segments.

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