2022 Cash Flow Analysis for Procter & Gamble Co PG

Procter & Gamble Co is a multinational consumer goods corporation that specializes in a wide range of personal health, hygiene, and home care products. The company is headquartered in Cincinnati, Ohio, and was founded in 1837. Procter & Gamble is renowned for its diverse product portfolio, including brands like Tide, Pampers, and Gillette, which are household names across the globe.

The cash flow statement provides insight into how much cash or cash equivalents a company has generated and utilized over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to comprehend how a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Procter & Gamble Co in 2022. The width of the bars signifies the amount of cash flow, with wider bars indicating larger amounts.

We begin on the left with the company's cash position at the start of the year. During the year, the cash decreased, indicating that a portion of it was used for financing and investing activities. The cash flow from operating activities is the most significant source of cash, while the cash flow from investing activities is negative, suggesting that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is also negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, we conclude on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Procter & Gamble Co's cash flow, we have created a real-time counter that simulates the company's cash flow for 2022. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they happen but a simulation based on the company's reported cash flow for 2022. The counter is designed to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2022, Procter & Gamble Co generated $16,723 million in cash from operating activities, spent $4,424 million on investing activities, and used $14,876 million on financing activities. Consequently, the company's cash balance decreased by $3,074 million during the year.

The company's beginning cash balance was $10,288 million, typically including cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $7,214 million.

The company's capital expenditures for the year were $3,156 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $13,567 million in 2022. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Procter & Gamble Co's cash flow in 2022 highlights a robust generation of cash from operating activities, which significantly supports its financial strategies, including capital expenditures and shareholder returns. Despite the negative cash flow from investing and financing activities, the company maintains a healthy free cash flow, enabling it to continue investing in growth opportunities and returning value to shareholders. The decrease in cash balance reflects strategic financial decisions, including substantial capital investments and shareholder distributions.