Stock Analysis on Net

Procter & Gamble Co. (NYSE:PG)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Procter & Gamble Co., adjusted financial ratios

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Activity Ratio
Total Asset Turnover
Reported 0.68 0.68 0.64 0.59 0.59 0.56
Adjusted 0.69 0.69 0.65 0.60 0.59 0.57
Liquidity Ratio
Current Ratio
Reported 0.63 0.65 0.70 0.85 0.75 0.83
Adjusted 0.64 0.66 0.70 0.86 0.76 0.84
Solvency Ratios
Debt to Equity
Reported 0.74 0.68 0.69 0.75 0.64 0.60
Adjusted 0.68 0.62 0.65 0.69 0.59 0.57
Debt to Capital
Reported 0.43 0.40 0.41 0.43 0.39 0.37
Adjusted 0.41 0.38 0.39 0.41 0.37 0.36
Financial Leverage
Reported 2.58 2.52 2.57 2.59 2.44 2.26
Adjusted 2.29 2.21 2.30 2.31 2.17 2.04
Profitability Ratios
Net Profit Margin
Reported 17.87% 18.38% 18.79% 18.36% 5.76% 14.59%
Adjusted 17.40% 19.70% 21.45% 15.86% 5.39% 12.17%
Return on Equity (ROE)
Reported 31.33% 31.64% 30.85% 28.00% 8.26% 18.64%
Adjusted 27.50% 30.27% 32.10% 21.91% 6.95% 14.12%
Return on Assets (ROA)
Reported 12.13% 12.58% 11.99% 10.79% 3.39% 8.24%
Adjusted 11.99% 13.67% 13.95% 9.49% 3.21% 6.92%

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 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 current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Procter & Gamble Co. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Procter & Gamble Co. adjusted debt-to-equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Procter & Gamble Co. adjusted debt-to-capital ratio improved from 2021 to 2022 but then deteriorated significantly 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 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 ROE A profitability ratio calculated as adjusted net income divided by adjusted total 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 deteriorated from 2021 to 2022 and from 2022 to 2023.

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


Adjusted Total Asset Turnover

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
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
Selected Financial Data (US$ in millions)
Net sales 82,006 80,187 76,118 70,950 67,684 66,832
Adjusted total assets2 118,998 115,596 117,093 118,509 113,792 117,592
Activity Ratio
Adjusted total asset turnover3 0.69 0.69 0.65 0.60 0.59 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).

1 2023 Calculation
Total asset turnover = Net sales ÷ Total assets
= 82,006 ÷ 120,829 = 0.68

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 82,006 ÷ 118,998 = 0.69

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.

Adjusted Current Ratio

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Reported
Selected Financial Data (US$ in millions)
Current assets 22,648 21,653 23,091 27,987 22,473 23,320
Current liabilities 35,756 33,081 33,132 32,976 30,011 28,237
Liquidity Ratio
Current ratio1 0.63 0.65 0.70 0.85 0.75 0.83
Adjusted
Selected Financial Data (US$ in millions)
Current assets 22,648 21,653 23,091 27,987 22,473 23,320
Adjusted current liabilities2 35,582 32,934 32,854 32,504 29,543 27,724
Liquidity Ratio
Adjusted current ratio3 0.64 0.66 0.70 0.86 0.76 0.84

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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 22,648 ÷ 35,756 = 0.63

2 Adjusted current liabilities. See details »

3 2023 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 22,648 ÷ 35,582 = 0.64

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Procter & Gamble Co. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 34,607 31,493 31,988 34,720 30,092 31,286
Shareholders’ equity attributable to Procter & Gamble 46,777 46,589 46,378 46,521 47,194 52,293
Solvency Ratio
Debt to equity1 0.74 0.68 0.69 0.75 0.64 0.60
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 35,424 32,293 32,838 35,611 31,235 32,539
Adjusted total shareholders’ equity3 51,886 52,198 50,871 51,358 52,500 57,588
Solvency Ratio
Adjusted debt to equity4 0.68 0.62 0.65 0.69 0.59 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity attributable to Procter & Gamble
= 34,607 ÷ 46,777 = 0.74

2 Adjusted total debt. See details »

3 Adjusted total shareholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total shareholders’ equity
= 35,424 ÷ 51,886 = 0.68

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Procter & Gamble Co. adjusted debt-to-equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Debt to Capital

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 34,607 31,493 31,988 34,720 30,092 31,286
Total capital 81,384 78,082 78,366 81,241 77,286 83,579
Solvency Ratio
Debt to capital1 0.43 0.40 0.41 0.43 0.39 0.37
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 35,424 32,293 32,838 35,611 31,235 32,539
Adjusted total capital3 87,310 84,491 83,709 86,969 83,735 90,127
Solvency Ratio
Adjusted debt to capital4 0.41 0.38 0.39 0.41 0.37 0.36

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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 34,607 ÷ 81,384 = 0.43

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 35,424 ÷ 87,310 = 0.41

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Procter & Gamble Co. adjusted debt-to-capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
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
Selected Financial Data (US$ in millions)
Adjusted total assets2 118,998 115,596 117,093 118,509 113,792 117,592
Adjusted total shareholders’ equity3 51,886 52,198 50,871 51,358 52,500 57,588
Solvency Ratio
Adjusted financial leverage4 2.29 2.21 2.30 2.31 2.17 2.04

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).

1 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity attributable to Procter & Gamble
= 120,829 ÷ 46,777 = 2.58

2 Adjusted total assets. See details »

3 Adjusted total shareholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total shareholders’ equity
= 118,998 ÷ 51,886 = 2.29

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.

Adjusted Net Profit Margin

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
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
Selected Financial Data (US$ in millions)
Adjusted net earnings2 14,267 15,799 16,329 11,250 3,651 8,132
Net sales 82,006 80,187 76,118 70,950 67,684 66,832
Profitability Ratio
Adjusted net profit margin3 17.40% 19.70% 21.45% 15.86% 5.39% 12.17%

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).

1 2023 Calculation
Net profit margin = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Net sales
= 100 × 14,653 ÷ 82,006 = 17.87%

2 Adjusted net earnings. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 14,267 ÷ 82,006 = 17.40%

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.

Adjusted Return on Equity (ROE)

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
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
Selected Financial Data (US$ in millions)
Adjusted net earnings2 14,267 15,799 16,329 11,250 3,651 8,132
Adjusted total shareholders’ equity3 51,886 52,198 50,871 51,358 52,500 57,588
Profitability Ratio
Adjusted ROE4 27.50% 30.27% 32.10% 21.91% 6.95% 14.12%

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).

1 2023 Calculation
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 net earnings. See details »

3 Adjusted total shareholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total shareholders’ equity
= 100 × 14,267 ÷ 51,886 = 27.50%

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

Adjusted Return on Assets (ROA)

Microsoft Excel
Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019 Jun 30, 2018
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
Selected Financial Data (US$ in millions)
Adjusted net earnings2 14,267 15,799 16,329 11,250 3,651 8,132
Adjusted total assets3 118,998 115,596 117,093 118,509 113,792 117,592
Profitability Ratio
Adjusted ROA4 11.99% 13.67% 13.95% 9.49% 3.21% 6.92%

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).

1 2023 Calculation
ROA = 100 × Net earnings attributable to Procter & Gamble (P&G) ÷ Total assets
= 100 × 14,653 ÷ 120,829 = 12.13%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 14,267 ÷ 118,998 = 11.99%

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 deteriorated from 2021 to 2022 and from 2022 to 2023.