- 期刊
- OpenAccess
The Comparative Analysis and Its Effect on Stock Prices of Consumer Goods Companies
摘要
This research study executed a comparative analysis of financial performance and its effects on the stock prices of consumer goods companies. Procter & Gamble and Kimberly-Clark were the two companies chosen for the financial comparison. The financial data in this research was collected and compiled from the annual reports of both companies and financial statements over an eleven-year period from 2009 to 2020.Financial indicators tested in this study include net profit margin, operating cash flow, inventory turnover, price to equity, debt to equity and return on equity. This research is categorized as a casual research, a quantitative method and data analysis was performed using multiple linear regression and Pearson correlation. The results from this study showed that Procter & Gamble had a better financial performance than Kimberly-Clark over the eleven-year period boasting higher profit margins and growth rates. Debt to equity and price to earnings ratio influenced the return on equity of Procter & Gamble. Whereas debt to equity, price to earnings and inventory turnover influenced the return on equity for Kimberly-Clark. For both companies, there was no significant correlation between stock price and return on equity. Operating cash flow, price to earnings and return on equity influenced the stock price of Procter & Gamble. While net profit margin and price to earnings influenced the stock price of Kimberly-Clark. Simultaneously if all financial indicators for both companies changed their stock price would be affected.