Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Procter & Gamble Co., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
U.S. federal	2,303)	1,916)	1,663)	1,266)	1,064)	3,965)
International	1,412)	1,333)	1,534)	1,769)	1,259)	1,131)
U.S. state and local	353)	355)	324)	292)	191)	213)
Current tax expense	4,068)	3,604)	3,521)	3,327)	2,514)	5,309)
U.S. federal	(224)	(320)	(65)	39)	(296)	(1,989)
International and other	(229)	(82)	(193)	(635)	(115)	145)
Deferred tax benefit	(453)	(402)	(258)	(596)	(411)	(1,844)
Tax expense	3,615)	3,202)	3,263)	2,731)	2,103)	3,465)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

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Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Procter & Gamble Co. current tax expense increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax benefit	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Procter & Gamble Co. deferred tax benefit decreased from 2021 to 2022 and from 2022 to 2023.
Tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Procter & Gamble Co. tax expense decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Procter & Gamble Co., effective income tax rate (EITR) reconciliation

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	28.10%
Country mix impacts of foreign operations	-0.50%	-0.30%	-0.50%	-0.10%	-0.50%	-4.70%
State income taxes, net of federal benefit	1.60%	1.50%	1.30%	1.40%	2.60%	1.40%
Excess tax benefits from the exercise of stock options	-1.00%	-2.00%	-1.60%	-1.60%	-3.80%	-0.40%
Tax benefit from simplification of legal entity structure	0.00%	0.00%	0.00%	-1.40%	0.00%	0.00%
Foreign derived intangible income deduction (FDII)	-0.80%	-1.10%	-1.00%	-1.00%	-2.20%	0.00%
Changes in uncertain tax positions	0.10%	-0.40%	-0.10%	0.10%	-0.30%	-0.30%
Goodwill impairment	0.00%	0.00%	0.00%	0.00%	22.80%	0.00%
Other	-0.70%	-0.90%	-0.60%	-1.20%	-4.90%	-2.60%
Effective income tax rate, before net transitional impact of U.S. Tax Act	19.70%	17.80%	18.50%	17.20%	34.70%	21.50%
Net transitional impact of U.S. Tax Act	0.00%	0.00%	0.00%	0.00%	0.00%	4.50%
Effective income tax rate	19.70%	17.80%	18.50%	17.20%	34.70%	26.00%

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

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Item	Description	The company
Effective income tax rate, before net transitional impact of U.S. Tax Act	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Procter & Gamble Co. effective income tax rate, before net transitional impact of U.S. Tax Act decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Procter & Gamble Co., components of deferred tax assets and liabilities

US$ in millions

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Loss and other carryforwards	1,014)	914)	1,030)	875)	1,007)	1,067)
Capitalized research & development	930)	646)	358)	—)	—)	—)
Pension and other retiree benefits	737)	740)	1,476)	1,602)	1,591)	1,478)
Accrued marketing and promotion	421)	420)	424)	353)	334)	223)
Stock-based compensation	412)	386)	386)	398)	421)	476)
Unrealized loss on financial and foreign exchange transactions	282)	138)	109)	64)	73)	61)
Fixed assets	223)	209)	223)	218)	232)	223)
Lease liabilities	197)	185)	196)	190)	—)	—)
Advance payments	—)	82)	—)	—)	—)	4)
Inventory	—)	41)	31)	27)	41)	35)
Accrued interest and taxes	—)	22)	22)	20)	15)	17)
Other	874)	717)	878)	829)	931)	699)
Deferred tax assets, gross	5,090)	4,500)	5,133)	4,576)	4,645)	4,283)
Valuation allowances	(403)	(409)	(569)	(486)	(442)	(457)
Deferred tax assets, net	4,687)	4,091)	4,564)	4,090)	4,203)	3,826)
Goodwill and other intangible assets	(5,811)	(5,783)	(5,761)	(5,775)	(6,506)	(6,168)
Fixed assets	(1,556)	(1,542)	(1,512)	(1,485)	(1,413)	(1,276)
Other retiree benefits	(1,101)	(1,031)	(645)	(265)	—)	—)
Unrealized gain on financial and foreign exchange transactions	(198)	(439)	(111)	(169)	(147)	(169)
Lease right-of-use assets	(191)	(179)	(191)	(185)	—)	—)
Foreign withholding tax on earnings to be repatriated	(96)	(70)	(108)	(118)	(239)	(244)
Other	(381)	(244)	(175)	(101)	(351)	(161)
Deferred tax liabilities	(9,334)	(9,288)	(8,503)	(8,098)	(8,656)	(8,018)
Deferred tax assets (liabilities), net	(4,647)	(5,197)	(3,939)	(4,008)	(4,453)	(4,192)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

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Item	Description	The company
Deferred tax assets, gross	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Procter & Gamble Co. deferred tax assets, gross decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Deferred tax assets, net	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Procter & Gamble Co. deferred tax assets, net decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax assets (liabilities), net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Procter & Gamble Co. deferred tax assets (liabilities), net decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Procter & Gamble Co., deferred tax assets and liabilities, classification

US$ in millions

		Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
	Deferred tax assets (included in Other noncurrent assets)	1,831)	1,612)	2,214)	2,191)	2,446)	1,971)
	Deferred tax liabilities	6,478)	6,809)	6,153)	6,199)	6,899)	6,163)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

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Item	Description	The company
Deferred tax assets (included in Other noncurrent assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Procter & Gamble Co. deferred tax assets (included in Other noncurrent assets) decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Procter & Gamble Co. deferred tax liabilities increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Procter & Gamble Co., adjustments to financial statements

US$ in millions

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Adjustment to Total Assets
Total assets (as reported)	120,829)	117,208)	119,307)	120,700)	115,095)	118,310)
Less: Noncurrent deferred tax assets, net	1,831)	1,612)	2,214)	2,191)	2,446)	1,971)
Total assets (adjusted)	118,998)	115,596)	117,093)	118,509)	112,649)	116,339)
Adjustment to Total Liabilities
Total liabilities (as reported)	73,764)	70,354)	72,653)	73,822)	67,516)	65,427)
Less: Noncurrent deferred tax liabilities, net	6,478)	6,809)	6,153)	6,199)	6,899)	6,163)
Total liabilities (adjusted)	67,286)	63,545)	66,500)	67,623)	60,617)	59,264)
Adjustment to Shareholders’ Equity Attributable To Procter & Gamble
Shareholders’ equity attributable to Procter & Gamble (as reported)	46,777)	46,589)	46,378)	46,521)	47,194)	52,293)
Less: Net deferred tax assets (liabilities)	(4,647)	(5,197)	(3,939)	(4,008)	(4,453)	(4,192)
Shareholders’ equity attributable to Procter & Gamble (adjusted)	51,424)	51,786)	50,317)	50,529)	51,647)	56,485)
Adjustment to Net Earnings Attributable To Procter & Gamble (P&G)
Net earnings attributable to Procter & Gamble (P&G) (as reported)	14,653)	14,742)	14,306)	13,027)	3,897)	9,750)
Add: Deferred income tax expense (benefit)	(453)	(402)	(258)	(596)	(411)	(1,844)
Net earnings attributable to Procter & Gamble (P&G) (adjusted)	14,200)	14,340)	14,048)	12,431)	3,486)	7,906)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Procter & Gamble Co., Financial Data: Reported vs. Adjusted

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Procter & Gamble Co., adjusted financial ratios

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Net Profit Margin
Reported net profit margin	17.87%	18.38%	18.79%	18.36%	5.76%	14.59%
Adjusted net profit margin	17.32%	17.88%	18.46%	17.52%	5.15%	11.83%
Total Asset Turnover
Reported total asset turnover	0.68	0.68	0.64	0.59	0.59	0.56
Adjusted total asset turnover	0.69	0.69	0.65	0.60	0.60	0.57
Financial Leverage
Reported financial leverage	2.58	2.52	2.57	2.59	2.44	2.26
Adjusted financial leverage	2.31	2.23	2.33	2.35	2.18	2.06
Return on Equity (ROE)
Reported ROE	31.33%	31.64%	30.85%	28.00%	8.26%	18.64%
Adjusted ROE	27.61%	27.69%	27.92%	24.60%	6.75%	14.00%
Return on Assets (ROA)
Reported ROA	12.13%	12.58%	11.99%	10.79%	3.39%	8.24%
Adjusted ROA	11.93%	12.41%	12.00%	10.49%	3.09%	6.80%

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Procter & Gamble Co. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Procter & Gamble Co. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Procter & Gamble Co. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Procter & Gamble Co. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Procter & Gamble Co. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Procter & Gamble Co., Financial Ratios: Reported vs. Adjusted

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	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)	14,653)	14,742)	14,306)	13,027)	3,897)	9,750)
Net sales	82,006)	80,187)	76,118)	70,950)	67,684)	66,832)
Profitability Ratio
Net profit margin¹	17.87%	18.38%	18.79%	18.36%	5.76%	14.59%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Procter & Gamble (P&G)	14,200)	14,340)	14,048)	12,431)	3,486)	7,906)
Net sales	82,006)	80,187)	76,118)	70,950)	67,684)	66,832)
Profitability Ratio
Adjusted net profit margin²	17.32%	17.88%	18.46%	17.52%	5.15%	11.83%

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

¹ Net profit margin = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Net sales
= 100 × 14,653 ÷ 82,006 = 17.87%

² Adjusted net profit margin = 100 × Adjusted net earnings attributable to Procter & Gamble (P&G) ÷ Net sales
= 100 × 14,200 ÷ 82,006 = 17.32%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Procter & Gamble Co. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales	82,006)	80,187)	76,118)	70,950)	67,684)	66,832)
Total assets	120,829)	117,208)	119,307)	120,700)	115,095)	118,310)
Activity Ratio
Total asset turnover¹	0.68	0.68	0.64	0.59	0.59	0.56
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	82,006)	80,187)	76,118)	70,950)	67,684)	66,832)
Adjusted total assets	118,998)	115,596)	117,093)	118,509)	112,649)	116,339)
Activity Ratio
Adjusted total asset turnover²	0.69	0.69	0.65	0.60	0.60	0.57

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 82,006 ÷ 120,829 = 0.68

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 82,006 ÷ 118,998 = 0.69

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Procter & Gamble Co. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	120,829)	117,208)	119,307)	120,700)	115,095)	118,310)
Shareholders’ equity attributable to Procter & Gamble	46,777)	46,589)	46,378)	46,521)	47,194)	52,293)
Solvency Ratio
Financial leverage¹	2.58	2.52	2.57	2.59	2.44	2.26
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	118,998)	115,596)	117,093)	118,509)	112,649)	116,339)
Adjusted shareholders’ equity attributable to Procter & Gamble	51,424)	51,786)	50,317)	50,529)	51,647)	56,485)
Solvency Ratio
Adjusted financial leverage²	2.31	2.23	2.33	2.35	2.18	2.06

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity attributable to Procter & Gamble
= 120,829 ÷ 46,777 = 2.58

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity attributable to Procter & Gamble
= 118,998 ÷ 51,424 = 2.31

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Procter & Gamble Co. adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)	14,653)	14,742)	14,306)	13,027)	3,897)	9,750)
Shareholders’ equity attributable to Procter & Gamble	46,777)	46,589)	46,378)	46,521)	47,194)	52,293)
Profitability Ratio
ROE¹	31.33%	31.64%	30.85%	28.00%	8.26%	18.64%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Procter & Gamble (P&G)	14,200)	14,340)	14,048)	12,431)	3,486)	7,906)
Adjusted shareholders’ equity attributable to Procter & Gamble	51,424)	51,786)	50,317)	50,529)	51,647)	56,485)
Profitability Ratio
Adjusted ROE²	27.61%	27.69%	27.92%	24.60%	6.75%	14.00%

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

¹ ROE = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Shareholders’ equity attributable to Procter & Gamble
= 100 × 14,653 ÷ 46,777 = 31.33%

² Adjusted ROE = 100 × Adjusted net earnings attributable to Procter & Gamble (P&G) ÷ Adjusted shareholders’ equity attributable to Procter & Gamble
= 100 × 14,200 ÷ 51,424 = 27.61%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Procter & Gamble Co. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Procter & Gamble (P&G)	14,653)	14,742)	14,306)	13,027)	3,897)	9,750)
Total assets	120,829)	117,208)	119,307)	120,700)	115,095)	118,310)
Profitability Ratio
ROA¹	12.13%	12.58%	11.99%	10.79%	3.39%	8.24%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Procter & Gamble (P&G)	14,200)	14,340)	14,048)	12,431)	3,486)	7,906)
Adjusted total assets	118,998)	115,596)	117,093)	118,509)	112,649)	116,339)
Profitability Ratio
Adjusted ROA²	11.93%	12.41%	12.00%	10.49%	3.09%	6.80%

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

2023 Calculations

¹ ROA = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Total assets
= 100 × 14,653 ÷ 120,829 = 12.13%

² Adjusted ROA = 100 × Adjusted net earnings attributable to Procter & Gamble (P&G) ÷ Adjusted total assets
= 100 × 14,200 ÷ 118,998 = 11.93%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Procter & Gamble Co. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Procter & Gamble Co. (NYSE:PG)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Procter & Gamble Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Procter & Gamble Co., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)