According to the Procter & Gamble Co. annual income statement, the company has demonstrated a steady increase in sales and revenue over the last five years. During this period, the business entity has witnessed sales growth, gross income increase, higher cost of goods sold, and others (WSJ, 2021). Simultaneously, it is necessary to highlight the significantly higher net income and net margin, which were found in 2021 (WSJ, 2021). All this information denotes that Procter & Gamble Co. successfully managed its operations, which has resulted in multiple successful outcomes for the entire business. As a result, the company has accumulated sufficient financial resources that it can further use to develop and improve. Irrespective of the multiple successful outcomes that have been presented, Procter & Gamble Co. still has some room for improvement to maximize potential profits.
Since there is space for the company to improve, it is reasonable to offer specific recommendations. According to WSJ (2021), the company’s inefficiencies refer to high non-operating expenses, meaning that it is necessary to address this issue. In particular, 2021 has seen an increase in interest expense, denoting that Procter & Gamble Co. should reduce its borrowings. A suitable approach is to simplify the existing supply chain to ensure that the business does not require many external resources to lead its operations. In this case, multiple interventions are possible, and they include implementing innovations, relying on local suppliers, and many others. Even though these suggestions seem elementary, they have the potential to brining multiple positive outcomes. Since non-operating expenses do not directly refer to the company’s business operations, it is reasonable to invest some efforts to ensure that they are minimized, which will lead to higher profits.
Reference
WSJ. (2021). Procter & Gamble Co. Web.