2023 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 household products. The company is headquartered in Cincinnati, Ohio, and was founded in 1837. Procter & Gamble is renowned for its well-known brands, including Tide, Pampers, and Gillette, which are integral to its extensive product portfolio.

The cash flow statement is a crucial financial document that outlines the cash and 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 essential for investors and analysts to assess how effectively a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Procter & Gamble Co in 2023. The width of the bars signifies the volume 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 fiscal year. The cash increased over the year, with cash being primarily generated from operating activities. The cash flow from operating activities is the largest source of cash, while investing activities resulted in a cash outflow.

The cash flow from investing activities is negative, indicating 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 changes in cash, including the effect of exchange rate fluctuations, 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 2023. The counter activates when you scroll to this section and operates at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they occur, but a simulation based on the company's reported cash flow for 2023. The counter is designed to give you an understanding of the scale of the company's cash flow and its rapid movement.

Cash Flow Statement

In 2023, Procter & Gamble Co generated $16,848 million in cash from operating activities, spent $3,500 million on investing activities, and used $12,146 million in financing activities. Consequently, the company's cash balance increased by $1,032 million during the year.

The company's beginning cash balance was $7,214 million. Typically, this amount includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $8,246 million.

The company's capital expenditures for the year were $3,062 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 $13,786 million in 2023. 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 2023 highlights its strong operational cash generation, which significantly contributed to an increase in its cash position by the end of the fiscal year. Despite the negative cash flow from investing and financing activities, the company maintained a robust free cash flow, allowing for strategic investments and shareholder returns. The increase in cash balance, despite substantial capital expenditures and financing outflows, underscores the company's effective cash management and operational efficiency.