2024 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, which includes well-known brands such as Tide, Pampers, and Gillette.

The cash flow statement provides insights into how much cash or cash equivalents a company has generated and used during 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 understand 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 2024. The width of the bars represents 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 fiscal year. The cash increased during the year, primarily due to cash generated from operating activities, despite cash outflows from financing and investing activities. The cash flow from operating activities is the largest source of cash, while investing activities resulted in cash outflows.

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

Real-Time Cash Flow Counter

To convey the scale of Procter & Gamble Co's cash flow, we have created a real-time counter that simulates the company's cash flow for 2024. 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 2024. The counter is intended to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2024, Procter & Gamble Co generated $19,846 million in cash from operating activities, spent $3,504 million on investing activities, and used $14,855 million for financing activities. Consequently, the company's cash balance increased by $1,235 million during the year.

The company's beginning cash balance was $8,246 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $9,482 million.

The company's capital expenditures for the year were $3,322 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 $16,524 million in 2024. 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 2024 highlights several key aspects. The company successfully increased its cash position by $1,235 million, driven primarily by strong cash flows from operating activities. Despite significant outflows for financing and investing activities, the company maintained a robust free cash flow of $16,524 million, demonstrating its ability to generate substantial cash to support dividends, share repurchases, and further investments.