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Proctor & Gamble

A frustrating problem in the analysis of Proctor & Gamble (http://www.pg.com) is that it provides only the current period and the previous period. This makes it impossible—at a glance—to spot a trend. Two entries cannot be used to draw any meaningful conclusions. Thus, it is necessary to check past annual statements to develop material to spot trends, confirm or contradict those trends, and estimate likely future growth.

Proctor & Gamble also identified what it calls “core earnings” as a separate line item in its latest annual report. However, it listed relatively minor adjustments, restructuring costs, amortization of goodwill, and indefinite-lived intangibles. It is interesting to note that these so-called core earnings adjustments increase reported net earnings (in $ mil):


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