Financial Managerial Principles Essay Example | Topics and Well Written Essays - 500 words - 1

Financial Managerial Principles - Essay ExampleIt shows how P&G has been performing preceding(prenominal) than the median(a) S&P 500 index over past years and benefiting its sh arholders with higher than the average index returns. The graph assumes that a $100 amount was invested, one in P&G and opposite in S&P 500 index. It can easily be seen that except for 3 years (1999, 2000 and 2001) during the period, P&G return has been above average which shows the soundness of its financial and ope circumscribeal performance which has enabled it to guide the benefits to its shareholders in the form of valuable returns.With lowering debt to Asset ratio and increasing current ratio, the company is tell towards lowering its risk perceived by shareholders while at the same time improving its capability to pay off its operational liabilities accrued due to revenue expenditure. Net earnings are alike on the rise showing that more and more part of their income will be given to shareholders. Since the dividend payout ration is something around 40 percent it means that with rising net income the shareholders cut will also increase. high societys research and development expenditure are at the ever highest, showing that the company is pass judgment to increase customer satisfaction by offering them innovative and unique solutions to their day to day necessitate in the form of better and improved products. This will increase customer loyalty and brand tasting among customers which will result in increase in companys value which is a uncreated concern for a shareholder.The last five year annual growth rate is 10.63 % (Procter & Gamble, 2007) which is good parole for investors who relies on dividend payment as a source of their earnings such as retirees. Since these are the typecast of investors who cannot wait to realize capital gains. They use dividends from the stock investment as a source of earnings.Opportunities are